As of February 2019, Forbes cited the student loan debt of the US population at $1.5 trillion. While your loan may be comparatively small to the overall burden on US students, you probably still want to pay it off as soon as possible rather than have it hang over you for years. How can you get those debts paid off quickly? Here are a couple of tips:
- Never just make the minimum payment – Even if you can only send an extra $5 this month, every little bit of extra money you send comes straight off the principle rather than just paying interest on the loan. If you have a 10-year loan with a 4.29% interest rate, paying $60 extra per month will allow you to get rid of the debt in 7 years instead of 10. That will save you over $1,100 in interest. Even just $15 extra per month will pay off the loan a full year early and save you nearly $400.
- Make automatic payments – Missing a payment can affect your credit and your interest rates, not just on your student loans but on everything. Even your car insurance payments are related to your credit score. So be sure to set up automatic payments so that you are never late.
Not in Debt Yet? Let Us Help You Keep It That Way
College Planning Source wants to help students find free money for college so that you can minimize how much of a loan you need in the first place. Reducing the loan total will allow you to pay it off even faster. Call us today at 858.676.0700, or you can contact us online for more information.