Another semester of college is about to end and many students will be graduating, and moving on to the next phase of life. They’ll take many things away from their experience, including student loans. Whether you’re graduating soon, or you’ve graduated a while ago, here are a few tips to pay off those student loans.
Know How Much You Owe
The first thing you should do is look at all of the loans you have. Seeing how much you owe will put you in the right mindset to start paying them off. That number is a goal, and seeing it lower each month will motivate you to work hard. It is also good to know whether your loans are federal or private. There is a difference in payment options between the two. If you’re not sure the kind of loans you have check out the National Student Loan Data Center. If your loan isn’t listed, it is probably private.
Find and Income Based Plan
A decade is the usual term for federal student loans, but you might have trouble making those payments. You can look at options that lower those payments, taking your income into account. It may take you longer to pay them off, but you can always make larger payments when your finances allow it. Using this student loan calculator, you can see which options are best for you.
Pay More Than the Minimum
If you are in a good financial position, then increase your payments. This is the best way to pay off your loans faster. You can even make more than one payment a month. Schedule them on, or right after you get paid so you know the money is going to be there. Say you have a minimum payment of $250/month. Make two payments of $150 instead of the single payment each month. The extra $50/month will go a long way in paying your loans off.
Student loans can be intimidating to deal with, but SeaComm’s partnership with GreenPath Financial Wellness can help. GreenPath provides SeaComm members with access to free one-on-one financial counseling, student loan counseling, debt management services and more. To learn more about how SeaComm’s partnership with GreenPath can help you, click here or call (800) 550-1961.