After putting in long hours of studying, interning, and getting good grades, you’ve graduated from college. Like many students, you probably had to take out student loans to fund your education. Now, it’s time to start paying them back. Don’t despair; there are realistic ways to pay off what is typically a low-rate loan quickly. Here are some to consider.

4 Tricks to Pay Down Your Student Loans Fast

1. Pay More Than the Minimum

Commit to paying more than the minimum amount due each month. Doing so can help you chip away at the interest that accrues on the principal balance. Many student loans are low-rate loans with a single-digit interest rate. This works in your favor because the more you pay each month, the faster the outstanding balance drops.  

2. Use Tax Refunds Towards Payments

As you start your career and earn a salary, tax refunds could also be in your future. Depending on your wages and income, the amounts can be significant. Earmark the refunds towards your student loan payments to take sizeable chunks from the balance. When you get a bonus or raise at work, direct those additional funds toward reducing the balance as well. 

3. Scale Back Expenses

After graduating from college, it may be tempting to celebrate with a new car or other luxury. Hold off and pinch pennies for several years. This can mean living at home with parents to save on rent or sticking with your used, paid-off vehicle a bit longer. Take a hard look at your monthly expenses and decide which ones can go. By scaling back, you can devote more funds to paying down your low-rate loan much faster. 

4. Refinance

Some lenders will allow you to refinance an existing loan, which could result in a lower interest rate. The new rate can make it possible to pay more towards your balance. Refinancing may also shorten your loan term. You’ll have fewer years to pay off the debt.

North Jersey Federal Credit Union congratulates you on graduating from college. Based in Totowa, NJ, the financial institution specializes in helping individuals manage their student loans so that they’re able to pay them off quickly. From offering low-rate loans to refinancing, there are several options that can accommodate your budget and payment goals. To learn more, call (973) 785-9200 to speak to a representative. You can also obtain information about loan choices online.