Most college graduates find it difficult to find a firm footing right after they graduate, thanks to the huge amounts of student loans acquired over years of education. The loan can be a huge factor in preventing them from launching their dream start-up or taking a break from the hectic lifestyle they have had to endure in their student life.
So, how does one pay off the debt as soon as possible and be free of the student loan? Well, here are 5 tips that will help you do exactly that and you can start investing in your dreams once you have repaid the debt.
1. Keep a Separate College Fund
Your job can help you start paying off the loan, but maintaining a separate college fund on the side will help you pay off your loan quicker and you will save a lot of interest money as well. It’s not easy to allocate more than half your salary towards repaying the loan, but it’s the fastest way to pay it off.
2. Get Your Employer to Do It for You
Fresh graduates hardly ever give this a thought, but you can ask your employers to pay off the debt when you start a new job. Even though small businesses who hire fresh graduates may not be able to offer such a facility, large firms and corporations can actually pay off the student debt and pay you, the employee, less in salary. The firms actually save costs in the long run by paying less, so it’s a great way to pay off your debt.
3. Start Paying Early On
A part-time job during the college days can give you a head start towards paying off the debt. It doesn’t only help pay off the loan quickly, but it also gains the students enough experience to land a better job soon after graduation that can help you pay off the loan easily.
4. Make a Budget
A proper budget is just as important as paying off the loan. Without a budget and exact figures in sight, you will never have a clear idea where all your money is going. But when you have a financial plan that allocates all your costs and expenses, you will find it easier to pay off the debt and keep money aside for other purposes as well.
5. Sign Up For Auto Debit
Making regular payments can be tough, especially in the face of so many other expenses. This is where Auto Debit can help you. An amount equivalent to the monthly payment you have to make will be deducted from your account automatically and transferred to the institution you have to make the payment to. What’s more, you won’t have to confirm each transaction.
So, keep these 5 simple ways in mind and you can indeed pay off your student loan a little easier.