Paying off student loan the ‘smart’ way

Simple tips to pay off your student loans

12:48 24 July 2014

If you are among the many struggling to pay down their student loans, here are few things you can do to turn it around and repay your debt in totality.

 

Millions of recent college graduates are currently grappling with paying down their student loans. It starts with understanding the scope of your debt and the repayment options available. This is an important first step in the journey to becoming debt free because it is not the same as disregarding that you are indebted and secretly wishing for a mystical waning of your student debt. 

 

There is likelihood that you funded your college education with more than one loan and/or lender. Students who make use of financial aid to fund their education get these facilities mostly from the grants and bursaries provided by the government,  and from private lenders. It is important that you stay systematized by going through statements and the various agreements to know the kinds of loans you hold, the amount you owe to each one of them, the interest rates and to whom you are indebted. 

 

Consider paying off your debt early as it attracts no fee. Pay the loans with high interests first in order to save cash in the form of interests over the course of the loan. As with any other debt, strive to pay more than the minimum monthly debt. It will greatly reduce the principal loan amount and cut down on interest accrued as well. Be sure to make payments in all your loans so that you do not default on any. 

 

New programs are implemented occasionally so as to assist loan holders make adjustments in their repayments and make it easier for them to clear their debts. Keep your ears and eyes wide open so as to take advantage of such programs. Consider other options such as putting your loans into deferment or forbearance. Remain focused and stay abreast with all available avenues to lead you to the debt-free zone.