A student loan helps students to pay for their tuition, supplies and books and even their living expenses. After the student finished his education, he must pay his debt as soon as possible. Unfortunately, this becomes difficult to some, especially if they haven’t found a stable job yet. Worry no more, because I will share to you some helpful and effective tips to help you pay your student loan.
- Understand and know your student loan.
Even if some people started having a student loan, not everyone knows how this works or what it is all about. There are many things to reconsider and try to research on, if you want to create the suitable and best student loan repayment plan.
This primarily includes:
- Interest rate. Few of the student loans have variable rates, while other has settled interest rate. You should figure and check out the interest rate of your loan, because this greatly affects your repayment plan you wish to choose. I recommended you to get the highest rates first, so the duration of your repayment plan will cut short than the usual.
- Student loan refund. There are several company employers who want to negotiate with you, saying that you have to work for them for an ample of time; maintain great grades, good attendance and they might suggest any other requirements, too. If your very lucky some will offer to pay- fully or partially– your student debts. Always do research in this area to ensure your safety and security of your student loan.
- Create your budget.
If you don’t have one, it’s now the right time to start creating your personalized budget plan.
You must include first your expenses every month and then your salary income. Once, you’re finished lining up all the expenses then subtract it to your monthly incomes, what’s left can be transferred to your savings account or to your student loan. It would be best if you pay more on your student loan, so it won’t take long before you are done with this debt.
The good thing about creating your own budget plan will accommodate efficiently all your needs and expenses. In this way, it’s easier to oversee which bill should but minimized so you can still save money, even if you have a student loan.
- Cut any unnecessary expense.
Once you’re finished with making your budget plan, it’s the high time you have to figure out which expense is taking up all your monthly salary. There are times that due to the demand of our adulating problems, we often get too much overwhelmed spending our money to things that has alternative cheaper costs.
Here are some of the expenses you can still minimize:
- Cellphone bill. There are some companies that offer a good cell phone service that starts for only $10, instead of spending for almost $150 every month.
- ATM fees. Is this necessary? Ask yourself that, please.
- Save money on food and get healthy. For only $5 you’ll be able to have a customized meal plan sent directly in your email using $5 Meal Plan You can save in this one, since it recommends food recipes that healthy and money-wise.
- Be fuel-wise. Don’t waste the fuel of your car if the destination you wish to go is just near your place. Move those legs of yours and get exercised.
- Rent in a cheaper house. It’s not like you have to live on the streets and sleep on a box, try renting in a smaller house. In this way, you’ll just have to pay for lesser utility expenses and mortgages.
- Don’t invest in expensive-type of fun. When you want to have fun, there are many ways to achieve that, but it doesn’t have to that expensive to be entertained. If you think that money can buy happiness, then take a second thinking for your student loan before spending it.
- Buy a cheaper car. If you have now an expensive car and it’s your dream car, I suggest you trade it for the cheaper ones. For now, endure first the cheaper car, since you’re just going to use it for necessity. Think about the expenses you’ll have to face when you don’t trade your expensive car to a cheaper one.
- Pay more than what’s required.
The point of what I shared in here is that, you can always pay more than your usual interest rate on your student loan from licensed moneylenders. If you will go a little further on this, then there’s a higher chance that you’ll be able to pay off your debt more quickly.
It may sound difficult, but once you set a goal and you’re determine to achieve it, nothing’s going to be possible and would stop you. With this you’ll be able to shave off and minimize your supposed to be years of paying the student loans.
About the Author
Bianca Lauren is an experienced writer and financial community adviser at Cash Mart Singapore Lender. She’s passionate about sharing her experience in personal finance, business & entrepreneurship.