The dream of every student who is haunted by a student loan is to pay it off as fast as possible. How exactly can you achieve that? How to Pay off a Student Loan as Fast as Possible?
What do 25-, 35-, and 45-year-olds have in common? They all are still paying off their student loans. Apparently, you can never be too old to be in debt to your alma mater in terms of your precious knowledge and financial pit.
All of us are mature enough to realize that it`s just a part of the system that can`t be avoided. If you want to get a highly paid job, you need to graduate from a university.
And in order to do that, you can either sell all vital organs (and it still won`t cover all the expenses, so don`t do that) or sign up for a 10 to 20 years contract with the devil himself.
There is no need to cry over your troubled situation, millions of students are going through this, but not all of them help you find the right repayment strategy.
You`re a lucky one, we`re going to spill all the details. What is more, we won`t even let you get expelled from the university, because in this case, your money would just go down the drain.
Each time you don`t submit your home assignment, the chance of you getting kicked out skyrockets.
Whether you`re still a student or you have graduated some time ago, you`re definitely going to need some advice on paying off that student loan.
Face the Horror
There is this weird peculiarity of human nature: we`d rather stay unaware of certain negative information than face it with courage and dignity.
We`d prefer not to know how much money is left in a bank account until the buzz goes off at the supermarket when you`re trying to pay for something.
The same is with the student loan.
Tell me right now: what`s the sum that you owe?
Not many of you will be able to answer straight away. Unfortunately, students don`t pay enough attention to their financial status mainly because it evokes negative emotions.
However, in order to pay off everything as quickly as possible and forget about your debt forever, you need to know for sure how much you have to pay, how much time it will take you, how much money should you save on a monthly basis and how you can make the whole process more effective.
Do some calculations, face the truth, the main point is that you have to be aware of the financial situation you got stuck in.
40-Hour Workweek? That`s for us!
Rich and successful people usually stick to the following plan: in order to become wealthy, you shouldn`t think about how to save money, you need to think about how to earn more.
We`re going to take this tip and combine the two concepts so you can say “bye-bye” to your loan very soon. To earn more, you need to work more.
If you`re a student, you can take some shifts at a local restaurant or work as a freelancer.
For now, you may not be that thrilled with this idea, because it`s the best time of your life and you want it to be as careless as possible. But you`ll thank us later, trust me.
When you graduate and start working full-time, 40-hour work week won`t get you far on the road of paying off a student loan. Consider switching to 50 or even 65-hour workweek.
But you have to always listen to your mind and body. Not all people are physically and mentally capable of keeping up with this pace.
However, you`d better still consider this option, because later on, you may start a family and you won`t have time to work so much.
Choose the Workplace That Is Willing to Help
If taking some extra shifts isn`t an option, perhaps you`ll find the following suggestion more suitable. There are companies which take care of the employees to the extent that they are helping with the student loan.
The HR-managers usually mention this peculiarity in the job offer announcement. More and more brands that are mostly hiring Millennials are providing this kind of assistance.
PricewaterhouseCoopers`s contribution, for example, goes up to $1,200 annually. That`s what I call taking care of your employees!
Living with Your Parents May Not Sound Like a Bad Idea Now
You must have heard about this tendency that more millennials choose to live with their parents up to their late twenties. Enormous student loans are one of the reasons for such a necessary measure.
Needless to say, the devilish rent prices are devouring a massive part of your budget, so tell your parents that as a loving child, you can`t let them feel lonely and you`re going to live with them for a couple more years.
Luxury vacations, designer clothes, an expensive car, unfortunately, are not something that you`ll get your hands on anytime soon, but you should always think in advance, remember about your mission.
Cutting expenses may be harder than it sounds because when you get your first real full-time job, you don`t feel the full control over your income yet and some unnecessary purchases may come along.
Use helpful apps in order to control your money.
Refinancing: Sounds Complicated, So Let Me Explain
When you sign up for this horrible, yet unavoidable burden called the student loan, you determine the term, the sum of money which will be paid on a monthly or an annual basis and the interest rates.
After you finish your studying you can refinance the cost due to your stable high income or any other reasons (what if you win a lottery?).
This measure may reduce the interest rates and will allow you to pay off the student loan much faster.
Most of the lenders won`t charge any additional costs for this financial operation so you can just fill in an application and become a free person not in ten, but only in five years. Now, the student loan doesn`t look like that heavy burden after all.