Acquiring student loan debt can feel like a necessary evil. But the opportunity to invest in your future now, despite the cost of a university education, opens up the doors to many future career opportunities.
There are a number of ways to make paying off your loan easier on you and reduce your debt quickly. The following tips can help reduce the burden of student loan debt.
1. Know Your Terms
One of the biggest mistakes students make is failing to understand the terms of their student loans. Counseling is required in many cases to give students the information they need regarding their loans once they graduate, but many students overlook important details.
Be sure you research all of the available information that’s given to you when you apply for your loan. This includes the interest rate terms (fixed vs. variable), as well as whether your loan is a federal or private loan.
Federal loans can have an Income-Based Repayment option to help you reduce the amount you pay. Payment is based on your earnings and can be less than you would pay under other loan agreements. This helps you get a handle on your monthly payments when income is limited.
2. Take Advantage of Discounts
Many students are unaware of the discounts that are available to them. Setting up a direct deposit for your loan payments can be an incentive for lenders to reduce the interest rate on your loan.
This agreement ensures lenders that you are less likely to default on payments, and that your payments will be made on time. A reduced interest rate can result in significant savings for you.
Another way to receive a discount on your loan is through the Public Service Loan Forgiveness program. For non-profit, federal, and state loans, this program forgives a portion of your loan on the condition that you are employed in a qualifying public service industry.
3. Debt Consolidation
Consolidation of your debt may be an option worth looking into. It can be a valuable tool in paying off your student loan by allowing you to combine multiple loans into one. This gives you the convenience of making one payment, while helping lower your monthly payment amount.
Consolidation should be done only when necessary. Although it can reduce your monthly payments, making it easy in cases of reduced income or unemployment, it can also increase your interest paid over time. You can give us a call at 732-388-0477 to learn more about Aspire’s Student Loan Debt Consolidation program.
Understanding your student loan terms, while taking advantage of the opportunities to reduce your payments and receive available discounts, helps you pay off your student loan easily. Higher education is a valuable investment, but making sure that you take the necessary steps to address student loans will make it all the more worthwhile.