5 Effective Ways to Say Goodbye To Your Student Loans

by Emily Scott Emily Scott

Every second, student debt increases by $2,858.

The demand for college education continues to increase, but so does its cost. It’s this need to pay skyrocketing college fees that’s led 45 million Americans down the road to debt.

After you’ve spent two or four years racking up debt, the time for repayment rolls around. It might seem impossible to pay off the thousands of dollars that have been adding up over the years, but ignoring it won’t make your debt go away.

In fact, putting off student loan repayment will result in further interest adding up over time—and let’s not forget the looming dread of defaulting on a loan.

If you’re ready to say adieu to your student loans, here are some ways to get done with debt repayment faster:

Make Larger Payments

Just the thought of a 30-year loan repayment term is enough to send shivers down anyone’s spine. However, that is the maximum period federal lenders assume their loans will be repaid in. Spending decades paying off your student loans doesn’t sound like a great idea, but that’s the reality for a lot of people.

Instead of dragging out your loans over a longer period, you can make larger payments whenever it’s possible. Paying a little more than you owe every month toward your principal will reduce future monthly payments—even something as little as $10 can make a dent in the total amount you owe!

Make It A Priority

You might be tempted to apply for deferment or forbearance, but this temporary relief will only delay the inevitable.

Approximately one-third of people between 18–29 years of age have outstanding student loan debt. During these years, most people are settling down, getting married, switching jobs, or applying for graduate school, and it may seem like a good idea to put off your student loans until you’ve gained a firmer footing.

However, making your debt repayment a priority ensures you don’t increase the loan amount or lengthen the loan term. Prioritize your loans over other expenses and you’ll be free of them sooner than you’d expected.

Stick To A Budget

Money is one of the leading causes of stress for people everywhere and student loan is a major stressor for 64% of people in the country.

One way to alleviate this stress is to create a budget and stick to it. Factor in your income and expenses to determine how much you can possibly allocate to your loan repayment. At this stage, consider cutting any avoidable expenses so you can put a chunk of your monthly earnings into repaying your loans.

Take Advantage Of Auto-Payments

Many private and federal lenders give you the opportunity to set up auto-debit payments for your loans. This technique makes it convenient to repay your loans month after month, especially if you find it difficult to actively set aside money for it. With auto-debit, the amount is automatically drawn from your bank account each month without the hassle of making the payment.

Auto-debit isn’t just a convenient option, it saves you money too. By signing up for it, you may be eligible for a 0.25% reduction in your interest rate. Taking advantage of the auto-pay discount ensures you’re saving money on your loan payments in the long run.

Consider Loan Refinancing

You may have agreed to certain terms when you initially applied for a loan, but you don’t have to be stuck with them forever. A good credit score or a better borrowing opportunity allows you to enjoy more favorable loan terms.

Loan refinancing gives you the chance to do away with your original loan and replace it with a more suitable one. With more freedom to choose between different lenders’ interest rates and loan repayment periods, you can save money while repaying your loans faster.

ELFI’s refinancing solutions will help you pay off your student debt while enjoying some peace of mind and saving money while you’re at it.

The thought of repaying your student loans may fill you with dread, but the best way to get out of this situation is to get through it. Luckily, you have some great tools and techniques at your disposal to make the process smoother for you.

Using our tips, you’ll be living a debt-free life in just a few years!

About Education Loan Finance

Education Loan Finance is one of the leading providers of student loans, parent loans, and refinancing plans in the U.S. The company has offered financial assistance and advice to countless students and parents looking to make college dreams a reality. By providing low interest rates, ELFI has become the reliable, reputable, and established lending service of choice for many.