College graduation is a day full of excitement. Diploma in hand, you walk across the stage, rightfully proud of the work you put it and the path you’re forging ahead for yourself. For those who took out loans to cover their higher learning expenses, it’s time to face the reality of paying them off. For 25 years, A Debt Coach Credit Counseling Service in Florence, KY, has helped clients create realistic student loan debt payoff plans designed to fit their everyday budgets. They’re here today to offer tips for paying off those loans even quicker than normal.
5 Student Loan Debt Payoff Tips
1. Ask About Refinancing
Some lenders may be willing to let you refinance your student loans at a lower interest rate. This move can not only lower your interest payments, but also your overall debt. Ask the lender if you’ll be liable for any pre-payment or origination fees if you do refinance.
2. Work A Second Job
Additional income earned through a second job or freelance work can go directly towards paying off your student loan debt faster. To resist the temptation of spending the extra cash on other things, place it in a separate account or another financial parking place.
3. Scale Back
Take a hard look at your day-to-day budget to see what expenses can be eliminated. Consider scaling back on shopping for clothes, eating out, travel, and other items that may be more of a “want” than a “need.” Use the income you would have spent towards your student loan debt.
4. Rethink Housing Costs
For some college graduates, housing will likely be their biggest expense. To save money, think about getting several roommates or, if all mutually agree, move back home for a while. If you do plan to live alone, look for inexpensive studio apartments or rooms for rent.
5. Use Your Tax Refunds
If you’re expecting a tax refund, consider using some, if not all, towards paying down your student loan debt. Depending on the amount of the refund, this move can eat away a large chunk of the outstanding debt.
To get started today on paying off your student loan debt, call A Debt Coach Credit Counseling Service at (859) 488-7670 or visit their website to schedule a free, no-obligation consultation. There’s even a 100% money-back guarantee if a solution can’t be found for your personal debt situation! For more, find the team on Facebook and Twitter.