Share:

Many people graduate from college with thousands of dollars in student loan debt. Adding these payments into your monthly budget can be challenging, even if you’re fortunate enough to enter the workforce right after getting your diploma. However, being strategic with how you handle your repayments can help eliminate this financial burden much sooner. Here are a few tips for achieving student loan debt relief earlier than anticipated.

How to Pay Down Student Loans Faster

1. Pay More Than the Monthly Minimum

When you take out a student loan, you agree to repay it by sending in a minimum monthly amount for a certain number of years. However, sticking to this schedule could end up stretching out your financial obligation for decades.

To get debt relief quicker, pay more than the minimum due each month. If you can afford to pay even slightly more, it will help reduce your repayment term. Make sure your loan servicer applies the money to your principal balance rather than next month’s bill.

2. Make Additional Payments With Extra Funds

debt reliefIt can be tempting to spend any work bonuses, tax refunds, lottery winnings, or inheritance money you receive on a vacation or shopping spree, but if your goal is debt relief, it’s better to apply it to your student loans. Since these extra funds aren’t part of your normal budget, this is the ideal opportunity to make a lump sum payment that will bring your balance down significantly. 

3. Consider Consolidating or Refinancing 

If you’re trying to keep up with payments on multiple student loans, you might want to consider consolidating or refinancing. This means taking out a new loan to pay off the various balances you owe. For eligible loans, this will leave you with only one monthly payment to manage.

Additionally, it will often provide a lower interest rate, allowing more of your monthly payment to go toward the principal balance, so you can pay the loan faster.

 

If you’re interested in consolidating your student loans, reach out to Donald L. Spafford, Jr., Attorney at Law, to explore your options. Backed by more than 30 years of experience, he and his team of legal professionals will provide a personalized assessment of your finances to determine the best solution for you. Using their expertise in this area of law, they’ve helped numerous Honolulu, HI, residents successfully obtain debt relief. Call (808) 532-6300 to schedule a free consultation.

tracking