Do you want to be financially worry-free? Well, one way you can achieve that is to pay off your debts as early as possible. College students like you may avail of student loans so that you can pay for your tuition and other school-related expenses. Nevertheless, you can only be relieved of your obligations if you are able to pay your debt.
After all, we want to be financially worry-free, right? So how can you pay off your student loan? Here are five helpful tips:
1. Look for a part time job. Let’s face it, you’re still a student and you don’t have a regular job yet. You need money to augment your daily school expenses and to pay off your student loan. So how can you manage to save money? The key is to look for a part time job. Having a job while you’re in college will help you earn enough money to pay off even just a portion of your student loan. You can try to apply as a student assistant so that you can save on tuition fees and be entitled to discounts and allowance. Another option is to work part time online as a freelancer or try babysitting or working in your local café or restaurant. There are lots of jobs out there you can try out.
2. Save money to pay off your loan. Once you already have a part time job, you can start saving money to pay off your student loan. Make it a point to save a portion of your salary and when you have enough money, you can use it to pay off the interest. You can begin by saving 15% of your salary on a monthly basis.
3. Pay the quarterly interest. Another way you can easily pay off your student loan is to pay the quarterly interest. This is applicable if you have an unsubsidized loan. Why pay every quarter? This allows you to reduce the remaining interest when you finish school or after your graduate. This way, you will only have to pay a smaller amount later on. Unlike subsidized loans, unsubsidized loans do not accumulate interest. When you pay the quarterly interest, you pay only the interest on the original amount of the loan.
4. Pay with huge lump sum payments. You can pay your student loan faster by paying huge lump sum payments. You can do this by saving as much money as possible. Just make sure you check this first with your creditor whether this will be applicable for you. Avoid delaying payments because this will only generate interest through time.
5. Spend money wisely. Finally, you have to be a wise spender. Make sure that you don’t spend too much money on things that aren’t necessary. Prioritize your money and manage your expenses well. Remember, paying off your student loan is important so you can be financially stable later on. So try to follow these tips.
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