If youre struggling topay off your student loans, rest assured you arent the only one.
Still, paying off student loans early is well worth the effort.
It can help you achieve financial freedom, improve your credit score, and reduce the overall interest paid.
Even small changes in payment habits can make a big difference.
Heard of These Credit Card Debt Tips?
But millions of Americans overlookthese easy tipsthat could help them manage credit card debt even more wisely.
Read moreto boost your credit knowledge and keep your credit score in check.
Filers generally must show undue hardship.
You will generally receive a Form 1099-C, Cancellation of Debt, from your lender.
Retirement Considerations
The consequences of student loan repayment will continue to hold you back.
About 38.9% of student loan debtbelongs to borrowersbetween 35 and 49.
And you still want to retire, right?
But how do you do it?
Were here to help you figure that out with tips for how to pay off student loans early.
Keep in mind that with each of these strategies, consistency and discipline are key.
Take Inventory of Your Student Loan Debt
This tip will start with a notepad.
Yes, youll have to get out pen and paper.
enter to all your loan servicers websites, and write down the full amount you owe to each.
Youll also need to determine if you have federal or private loans.
you’ve got the option to check theNational Student Loan Data Centerfor a list of your federal loans.
Any loan not listed there is most likely private.
There are important points to know about PSLF.
First, those who work at for-profit organizations, labor unions or partisan political organizations are ineligible.
Your loans will also need to be repaid under an income-driven repayment plan or a 10-year standard repayment plan.
Think of it like plugging your destination into Google Maps.
Were big fans of the debt avalanche and debt snowball methods to pay off debt.
With thedebt avalanche method, youll start with your highest interest loan.
Focus on your natural psychology to make the decision.
The zero-based budget model allows you to prioritize your expenses.
Why does it beat out the rest in the need for speed?
Some of our favorites are freelance bookkeeping, dog-sitting, selling your stuff anddelivering food orders.
Your budget will help you examine your spending and identify options for creatively cutting your spending.
Some of the most obvious places to start are with dining out and streaming subscriptions.
While side gigs are great for making some quick money, your long-term wealth relies on your main gig.
Its also important to look at the long-term trajectory of any industry.
And when youre deciding between jobs, check to see if the company offers student loan repayment assistance.
We Dare You to Take Control of Your Debt
Up for a debt challenge?
In 10 days,these 10 practical stepscould help you get back on the right financial track.
A tip for sticking to extra payments is to schedule them.
(This same trickworks for mortgagesas well.)
So lowering them wont make a huge impact.
Income-Driven Repayment Plans vs.
Note that these plans arent actually forgiveness programs; theyre repayment programs with a forgiveness option.
Monthly payments for these plans are generally equivalent to 15% of your discretionary income divided by 12.
With all these plans, you must resubmit your income and family size every year to determine eligibility.
Married couples will have to submit their combined income.
Use astudent loan calculatorto determine which of these is the best for you to enroll in.
You will be eligible for forgiveness after 25 years.
This is the only income-driven repayment choice for parent PLUS loan borrowers.
Essentially, you have to be a new borrower.
Forgiveness is available after 20 years of payments.
Before you decide to embark on an income-driven repayment plan, its important to understand the pros and cons.
Mistakes in this realm can create even more money challenges, putting you further away from your financial goals.
These strategies can help you pay off loans faster and achieve your other financial goals.
Remember to be consistent and disciplined, and your efforts will pay off (literally).
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Robert Bruce is a senior staff writer at The Penny Hoarder covering earning, saving and managing money.
He has written about personal finance for more than a decade.
Jen Smith is a former staff writer at The Penny Hoarder.
