Funding a college education is expensive and taking out debt to pay for college is so common that most of consider it necessary and don’t twice about it. In fact, more than half of college students take out loans to help fund their college adventure, I should know I was one of them. We take out the loans and forget all about them until after we graduate, when we get a letter in the mail from the student loans office stating how much we owe and that we need to begin repaying those debts.
If you’re like me, after graduation you were completely shocked by how much student debt you owed. I didn’t pay much attention to the amount of loans I took out before the start of each school year and the total amount took me by surprise.
Here are a few ways to help you pay off those loans quickly:
This seems to be getting more and more popular. If your having a difficult time repaying your student loans you can use a crowdfunding site to help raise money for those loans.
How it works
It’s actually pretty simple, you make a profile on a website like Go Fund Me or Move Your Mountain, popular crowdfunding and fundraising websites. You’ll want to explain your story and situation in full detail — such as when you graduated, amount of student debt you owe, repayment goals, life goals, and any reasons why people might want to donate money to you. Then anyone who comes across your profile can decide if they want to donate money to you. To make the process easier, you can link your profile to social media sites like Facebook and Twitter.
2. Hustle, Hustle Hard
The fastest way to get rid of student debt is to quickly pay them off. How to do this you ask? Well first, do remember the main reason you went to college is the first place? No, it wasn’t to party… okay maybe it was, but remember the second reason — to get a good job. That’s right, that expensive piece of paper you received called a degree, which you earned between all the beer pong, house parties, and the weekly Eggs and Kegs (the breakfast of champs) can actually help you land a decent paying job to pay off those nasty loans.
Get a Side Hustle
Get a side hustle to supplement the income from your full time job. A side hustle could be a part-time job or freelance work.
3. Make Larger Payments
Pay a larger amount of the principal each month than just the required minimum monthly payment. You’ll pay off your loans much faster and save yourself money in the long run since you won’t be paying as much in interest.
4. Make a Plan
Make a 3 to 5 year plan to have your loans paid off. Find out what your monthly payments you’d need to make each month to pay off the loans in that time frame, hold yourself accountable to follow through with those payments.
You can use a student loan calculator, like the one at FinAid.org to help figure out the payments you would need to make in order to meet your goal.
5. Create a Budget
Creating a budget is not only important for repaying your student loans, it’s also important for your overall financial health. A budget can help you find the necessary funds to pay back your loans.
6. Pay Down High Interest Loans
Pay off debt with the highest interest rates first to avoid paying more in interest. This will save you a lot of money in the long-run.
7. Have Your Employer Repay Your Loans
Ask your employer if they’ll pay for some of your student loans. Some employers offer employees student loan assistance and tuition reimbursement as part of their employee benefits package.
Author: Tyler DeBroux
Tyler started Oddball Wealth towards the end of 2014 after graduating college, as a way to stay relevant in his area of study, stimulate his mind, and to educate and help others.
Tyler has worked in the financial services industry, as a financial advisor, helping his clients make wise financial decisions and personalized long-term financial plans. Since graduating college in December of 2014, Tyler has paid off more than $15,000 in student loan debt and counting, his goal is to have all his student loans paid in full by the in of 2016.
Tyler is an entrepreneur and an expert in personal finance. Two of his many hobbies include investing and building online businesses. He is also a big advocate of early retirement and an aggressive saver, who utilizes any financial resources and tools available to him to help reach his goals for achieving financial independents.