student loan advice | What Is The Best Way To Pay Off My Student Loans Early and Save Money?

What Is The Best Way To Pay Off My Student Loans Early and Save Money?

how to pay off student loans early


Megan B from Nebraska asked: Can you tell me of a quick you to pay student loans? I owe about 20k and my interest rate on the student loan is 6.5%. My monthly payment is around $200. Any suggestions please?

Student Loan Advice: Hey Megan, there are plenty of ways to pay off your student loan early. Obviously the best way is to pay more than the minimum payment on your student loan. For example, instead of paying just $200, pay $400 if you can afford it. Or pay even more until it hurts. Make sure any amount over the minimum goes to the principle. Some people actually send in two checks. One for the minimum payment and another for the principle payment. In the note section of your principle only check, write a note that the check is for principle only.

I guess you’ll have to figure out how much a month you can afford to see how much you can pay above the minimum. If you do this, it means that the interest accruing on the loan will be less since the amount is now less. this is why people get in so much trouble when they just pay the 10 or 15 buck minimum on credit card payments. Sure, technically speaking you’re paying – but you’re not making a big enough dent to be paying off the principle and getting ahead of the interest payments.

If you’re in a medical, science, math or teaching field, there may be some help from Uncle Sam in repaying your student loan. For example, some Nursing Students can get most, if not all, of their education payed for by working internships.

Teach Science or Math at a Title-one school for three years, and the government will generally forgive a portion of the student loan cost. Teach Spec. Ed and it may pay all of it. It is not difficult to get a position at one of this types of schools. They can be found in most impoverished areas and inner-cities. You can research it: It is called the Teacher Loan Forgiveness Application.

You may or may not remember the TV series “Northern Exposure”. The doctor on that show worked in a small Alaskan village. He was in a program for several years so that the U.S. Government would repay is student loans. Uncle Sam has many such programs available, especially ones designed to help out small rural communities.

If none of these programs apply to you, then you’ll have to think of other ways to pay off your student loans quick. Try taking a part time job and applying all the money you make toward the student loan. Many people start doing this and then end up spending all the extra money on their self. This is counter productive!

Another way you might want to look at is to reduce your expenses. Do you have a car you’re paying on? Then try and sell it and by a inexpensive used one. Take the money you save and apply it to repaying your student loan. Can you move back in with your Family? This will cut your rent and utility payments. Again, take the extra and pay on the principle. If you’re disciplined, you can have $20,000 student loan paid off in 24 months or less.

An excellent book on the matter of Money is Dave Ramsey’s Total Money Makeover. Buy it and follow it to a ‘T’ and you’ll be surprised at how fast you can pay off any loan and become debt free.

These are only a few ways to pay off your student loans early and save money. Think outside the box for other ways. Just remember, be disciplined and focused. No spending in excess. You’ll be mighty happen when you get this load off your shoulders!

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