How to Pay Off Student Debt Quickly

If you’re a current student or a former college student who has student loans piled up, it may seem extremely overwhelming. A lot of people don’t realize the debt they are going into when they decide to go to college. Unfortunately, these loans must be paid back within a certain amount of time, along with interest. So, how can you pay off student debt quickly? Let’s take a look at a few different options.

Make Extra Payments

It may seem simple and self-explanatory to make extra payments toward your student loans. However, there is a smart way to do so. Of course, there is no penalty for paying more than what you owe each month for your loan payment. So, if you decide to pay an extra lump sum each month, you may be able to pay off your student debt years ahead of time. At the same time, you don’t have to make one large payment. You can also make multiple payments throughout the month to expedite your loan debt.

Refinancing

If you are in the position to refinance your student loans, this is another great way to pay them off quicker than normal. Refinancing means you’ll be taking multiple student loans and replacing them with one single private loan. Most of the time, you can also lower your interest rate when you refinance your loans. Refinancing is great for those who have high-interest rates or unsubsidized direct loans. Explore your refinancing options with a Sofi bank account to make sure you find the right deal that works for you.

Enroll in an Auto Payment Plan

If you aren’t a good candidate for refinancing your student loans, enrolling in an auto payment plan is another way you can lower your interest rate. Although it doesn’t make too much of a difference, this option could help you save a couple hundred dollars. A lot of federal student loan services offer a lower interest rate if you make auto payments that come directly from your bank account each month. If you have private lenders, this may also be an option for you as well.

Use Extra Money to Make Payments

One simple way to make payments towards your student loan debt is to put any extra money you have toward your monthly payment. For example, plan to take a certain amount from your tax returns to pay off your student loans quicker. Another option could be to use money you come across such as a pay raise or side job to work towards paying off your student loan debt.

Final Thoughts

If you are struggling with paying off your student loans, look for ways to lower your interest rates and pay off your debt quicker. Refinancing your loans can help with this, along with enrolling in an auto payment plan or just simply making larger payments than the minimum amount calls for. No matter what, you should always do your research to find a plan that will work best for you and your personal finances.