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A Guide to Student Loans: Hidden Tips to Pay Down Your Loans Faster

Last Updated

September 8, 2020

Written By

First Family Credit Union

Getting through college is no easy feat. Students are put through the best and most crucial four years of their life, but just when you think the uphill battle is over, you’re met with student loan debt at the finish line. Yes, paying off student loans may seem like an impossible task, but you’re in luck! Here are some tips from the Family First team to paying down your student loans, fast. 

5 Tips to Paying off Student Loan Debt 

1. Create a Budget   

Write down all of your current expenses to the last penny. Not only is this something you should do regardless, it helps you figure out how much of your debt you can realistically pay off per month and identify “extra” money that you may have. If you can save money during college, do it.  

2. Pay More than just the Minimum 

It’s easy to see a minimum balance number and to stick to it, but paying more than needed will benefit you in the long run. The more you pay, the less your interest will accumulate over time. When doing this, be sure your service provider knows that the extra amount that you pay should be applied to the current month’s balance. Some providers will apply the extra amount to the next month’s balance, making it harder to pay off your loans faster.  

3. Refinance and Consolidate    

Refinancing your loans allows you to pay off your debt faster without making extra payments. If you have a credit score in the high-600s, this could be a potential option for you. By refinancing, you can  consolidate multiple student loans into a single private loan with a lower interest rate, giving you the ability to pay off one bill rather than several.  

4. Tackle Your Loans Head On & Start Paying   

Some loans don’t begin accruing interest until after you graduate. A common mistake students make is waiting to start paying until their first bill comes. Alternatively, start paying down the principal while you’re ahead and not accruing interest. It will help you get a head start in the game and lower your principal. 

5. Bi-Weekly Payments 

Pay half of your monthly payment every two weeks rather than in one payment. This tricks you into paying extra and will accumulate an extra payment each year. Utilize a bi-weekly payment calculator to see how much you can save. 

We’re Here to Help 

Family First can get you started on paying off your student debt. Interested in refinancing and consolidating your loans? We’re here to help! We would be happy to sit down with you and evaluate what options are available. 

 

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