Banking and Financial Careers Jobs & Opportunities - News Information & Advice - Eurograduate

News Story:

How to pay off your student loans quickly

 

Student loan debt is one of the biggest financial concerns of people in their 20s and 30s. Debt payments often overwhelm recent graduates so much that they feel unable to deal with student loans while paying rent and other basic living expenses. One way to get out from under the weight of student loan debt is by making an effort to pay it off as quickly as possible.

While paying off debt quickly is a common recommendation, fitting higher payments into a monthly budget is easier said than done. Fortunately, it is possible to adjust your budget accordingly. Although paying off your student loans quickly may seem difficult now, it will make life much easier once you've gotten rid of the debt. Use the following tips to get rid of your student loan debt.

Find Graduate Jobs

Graduate jobs
give you an advantage because you'll be able to start paying off your loans before you are even done with school. Not only are graduate jobs beneficial to your financial well-being, but you'll gain solid work experience and form professional connections that can lead to permanent employment. The most important step to being able to pay off your student loans quickly is having a steady job.

Avoid New Debts

Taking on new debt will mean that you have less money available to pay for your existing debt. If you are planning on making a big purchase after university, hold off on the purchase until you can afford to pay for the purchase with cash. Examples of large purchases that people often go into debt to make include vehicles and expensive household appliances.

Live Well Within Your Means

Some people look at their income at a recently acquired job and think that it's time to move into a bigger place. However, moving into a bigger flat means that you'll be paying more in rent every month. Stick with the bare minimum so you can pay more on your student loans. If you are planning on moving after you graduate, consider moving to a smaller place until you get your loans paid off.

If you keep your living expenses the same after you graduate, you will be able to use most of your income to pay off your student loans.

Research Loan Forgiveness Options

There are some government programmes in England and Wales that forgive a certain amount of student loans if the person finds employment in a certain field. Teachers may be eligible for loan forgiveness if they attended university between 2002 and 2005.

Although there are currently not many options for loan forgiveness that are paid by the government, some employers are willing to help employees pay off student loan debt. Ask your employer if they have a programme that can help you pay your student loans off quickly.

Even Small Amounts Count

If you find that you do not have enough money to make large payments on your student loan debt, consider sending just a bit more every month. Even small amounts over the minimum payment can cut months off of the length of your loan.

Paying off student loans can be an overwhelming task, but you can do it quickly. Keep expenses down and payments up to get ahead.


FIND US ON FACEBOOK