5 Habits that help you pay off your student debt quickly

If you have a large student loan debt, you may be wondering how to pay off your student loans faster. Having student debt hanging over your head can be frustrating, so you likely want to pay them off as quickly as possible. Fortunately, there are a few strategies that you can employ to get them paid off quickly.

Make Larger Payments, or Pay More Frequently

While this tip may sound obvious, it is important to consider. When considering how to pay off student loans, the easiest way to do so faster is to pay more. However, deciding how much to pay is important, as is figuring out whether or not your lender will accept early payments. The truth is, lenders are supposed to always accept payment, even if you are paying ahead.

As for how much more you should pay toward your bill each month, consider the percentage of your income each month that you can afford to pay toward your loans. Some people start by putting 5-10% of their income toward this expense, while others may pay more. Additionally, setting up bi-weekly payments may also be helpful, as this will equal 26 total payments, which would be the equivalent of 13 payments at the monthly rate per year.

Get a Second Job

By getting a second, part-time job, you can earn more income to put toward your student loan debt. There are a variety of jobs available that you can do on the side to make extra money, such as working as a food server or in a retail store. You can also put your college education to good use to make some money by tutoring students or teaching music and language lessons.

If you have skills in areas like graphic design, writing, or research, consider finding a freelance gig to occupy your time and to fill your wallet. There are a variety of websites online that allow users to bid on projects, and while they may not pay a lot to begin with, any income can help when it comes to paying off your student loans. In addition, freelancing usually offers flexible hours, so you can schedule the amount of time you put into this work around your full-time job.

Reduce Your Interest Rate

If possible, contact your lender to see if you can reduce your interest rate. Some lenders will allow borrowers to set up an automatic payment system, and this often provides an interest rate discount of around 0.25%. Lenders are usually willing to make this arrangement because automatic payments increase the likelihood that you will continue to make your payments on time. While this fraction of a percent may not seem like a significant savings, it can ultimately save you hundreds of dollars over the life of your loan. You will likely need to have a history as a responsible borrower to qualify for an interest rate reduction, so monitor your credit score to ensure that it is accurate.

Stick to a Budget

Developing a budget and sticking to it is a great way to pay off your loans faster. You can plan where your money goes every month, and this control can allow you to put extra money toward your loans. Avoid impulse purchases, price shop, and only purchase items that are reasonably priced. Avoid the purchase of luxury items until after your student loans have been paid off. Also, work to save money by cooking at home rather than eating out, as this can be a major expense for people who are in the habit of grabbing dinner on the go.

Consider a Career that Will Help with Loan Repayment

Some occupations can actually help you to get some of your student loan debt forgiven. For example, the federal government offers a program for loan forgiveness for public service employees who make at least 120 qualifying payments. Law students who choose to work in a non-profit or public interest position may also receive grants for student loan repayment. Additionally, some volunteer programs may also make you eligible for a grant to pay back your student loans, including the Peace Corps and AmeriCorps.

There are a variety of ways that you can work to pay off your student loans faster, but even more importantly, it is vital that you at least stay up to date on your payments. Get your credit score in order to regularly see how your payment history has affected your credit rating.