Most students graduate college with some debt. In 2019-2020, 55% of all students who graduated from public and private nonprofit four-year universities had an average debt level of $28,400. The key to working through your student debt quickly is to stay organized. See our tips below to pay off your student loans quickly and with less stress!
- Establish a college repayment fund
Set up an account designated for paying off your student loans. Doing this will automatically transfer a specific amount of money to savings to help you control your spending.
- Make larger payments whenever possible
When possible, make additional payments to your principal balance to reduce the overall payoff time. By cutting down on the overall balance, you are also reducing the duration of the loan period and the interest accrued.
- Budget yourself!
Sticking to a budget may seem obvious, but it is the best way for you to stay organized and in control of your finances. Assess your spending habits and fixed costs to come up with a plan to save a little each month to pay down your debt. If you’re having trouble, use a student budget calculator to help get started.
- Get a part-time job
It may seem like the cost of college is too large to pay off with money you earn from a part-time job, however, every penny counts! Look at your college job board to find jobs that you can do while taking classes. Consider things like working on campus, waitressing, working at day care or day camp, food delivery, research, and more.
- Use the tax deduction
The federal government offers a student loan interest deduction on your taxes for interest paid during the year on qualified loans. This can equal a deduction up to $2500. Don’t miss out on this deduction!
- Ask about Repayment Assistance
Some employers offer student loan repayment benefits and can contribute money to help pay off your student debt. Companies like Carhartt, Carvana, Peloton, Chegg, Google, Fidelity Investments, and more all offer their employees repayment benefits. Some employers may even provide 100% loan forgiveness. Ask your Human Resources officer if your company can help with your student loans or apply to companies who do.
If you need more help or guidance, reach out to your financial aid office or loan officer for guidance to stay on track for paying back your loan.