Finance Globe

U.S. financial and economic topics from several finance writers.
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3 Best Ways to Pay Off Student Loans Faster

Most college students in today’s day and age turn to loans to finance their education. This may not be something they want to do, but instead something they have to do.

While there is nothing wrong with making the minimum payment on your student loan (s), there are steps you can take to speed up the pay off process. Here are three ideas to consider:

1. Round up. For example, if your total payment is $160, send $200 to the lender every month. To some, this may be a big deal. To others, it may not sound like a lot of money. Either way, it will go a long way in speeding up the payment process.

2. Consolidate your student loans. This is not the right choice for everyone, but it is a strategy that has been used effectively by many people over the years. By grouping your loans together it is easier to get an overview of your total debt. Along with this, it makes it much easier to manage your student loans.

Would you rather make one payment every month or several?

3. Talk to your lender about any discounts they offer. Did you know some lenders offer a discount for enrolling in automatic debit? This often results in an interest rate reduction of as much as 0.25%. You are going to pay the money anyway, so you might as well take advantage of a discount if available.

There are other ways to pay off student loans faster, but these three are among the simplest to implement. If you experiment with one or more of the ideas above, it will not be long before you realize that you are moving faster towards the day when your student loan debt is gone forever.
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Monday, 25 September 2023

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