Sneaky Little Trick to Lower Your Student Loan Payment
Student loans make going to college a reality for many students but what many don’t consider is the student loan repayment. Deferment while in school and other programs can put your payments off by a bit. Out of sight, out of mind, right?
When it’s actually time to buckle down and pay off your loan, it be a difficult feat, no joke!
Luckily, there may be a solution.
Check out these 3 sneaky tricks to paying off your loans fast, affordably, and stress free.
Refinancing helps by restructuring your student loans to make payments affordable and help you save money.
Paying your student loans on time is very important. The government can take action to collect on student loan payments including garnishing your wages.
Refinancing helps to alleviate the burden by providing much needed support.
How to Refinance
- Start with your current lender. Reach out and inquire about student loan refinance programs. If no success, a quick Google search will reveal tons of lenders with refinance programs.
- Apply. Easy enough.
- Make payments on time. Once approved, make your payments on time, sit back and enjoy your savings.
Next up, consolidation.
Consolidating can help you avoid the stress, embarrassment and poor credit score. Many financial institutions will allow you to refinance your loans for a lower interest rate, especially if your payment history is adequate.
So, what exactly is consolidation?
Well, when you go to college, typically you take out a loan for the semester or for the year. This means at the end of 4 years you’ll have multiple loans with multiple payments and multiple interest rates.
Consolidation combines all the loans into one!
By doing this, not only is much easier to manage but you can also save a ton of money, based on interest rate, loan term, and other factors.
You can work any lender of choice and generally the fees are minimal or nonexistent!
How it works:
The lender pays off your existing loan balances and replaces them with a single loan, allowing you make just one monthly payment.
Students as well as parents are eligible to consolidate schocolate loans; however, only loans from the same borrower can be consolidated. Also you should be aware that students cannot consolidate education loans while they are still in school.
Before consolidating, review all the pros and cons; looh into the cost of paying back your original loans against getting the new consolidation loan.
Loan Forgiveness Programs
Loan forgiveness programs, friends! Did you even know that they exist?
They aren’t available to everyone but exist if you fall into one of these categories:
- Public servings like public defenders, police, firefighter, etc.
- Employees of the government
- Volunteers in programs like Americorps
These programs help reduce student loans if the student chooses a public service job.
There you go..3 sneaky ways to save money on your student loans: refinancing, consolidation, and loan forgiveness.
Before you decide to take one of these paths, pay special attention to the features of your current loan. Remember, you will be paying off your original loan so cool features like income-based repayment, interest rate discounts for auto pay, and other features will go away and may differ with your new loan.
Sometimes changing your loan terms don’t make sense so make sure you review everything fully so you make a good decision. Have a student loan success story to share? Comment down below so we can hear your story!