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Five Top Budgeting Tips to Help You Pay Off Your Student Loan

ArticleID 164  
Writer Isaac Thuku
Category Personal Article

Introduction

The cost of college fees has risen by up to 130% and it has become very expensive for most of students to pay. Many would like to advance to higher levels of education but the high fees stand in their way. Well there are many student loans that are being offered to help students attain their dreams. Many people are applying for these loans as they are easy to apply for and the process takes only a short time.

As much as this has helped many people, the major problem now lies in repaying the loan. It can really take a toll on you especially when you are trying to settle down and look for a job. If you are on a tight budget and no cash seems to flow in your direction, then paying the loan may prove to be an impossible task. Well, there is no need to worry as there are ways in which you can work around paying your loan.

Steps to Paying Off That Student Loan

There are a few tips you can use to pay off your loan if you’re working on a tight budget. They are;

1. Try to reduce your debts by paying off other debts that you may have that have a higher interest rate. You can pay off the private loans first as they can be quite expensive especially if you don’t pay them on time and they can accrue a lot of money in interest which will be hard for you to pay monthly with your student loan as well.

2. Choose the right student loan repayment plan. Don’t just choose the one with the lowest amount as it will take many years and you will pay a lot more than what you took by the time you finish paying it off.

3. You can ask your employer to help you pay off your student loan as you can try and negotiate your pay during the salary negotiations. You can take a lower amount in salary and ask your boss to put a certain amount to the loan every month.

4. Try and sign up for auto deductions as they make your life easier. Most lenders charge a lower interest rate when you decide to choose this method. They deduct the amount direct from your account.

5. You can decide to volunteer and choose the programs that will offer partial loan cancellation or receive student-loan benefits. Depending on the years you serve, you can get a 70% loan cancellation and the money you make a month here can be used in repaying your loan.

Conclusion

Student loans can be very helpful but paying them off can be quite scary especially if you are on a tight budget. You should always have a plan to come up with a way that you will be able to pay it off. Try to save as much as you can and try to pay while still in school. Don’t wait for you to finish school then start paying as this could be quite expensive since it will take a long time to finish paying off the loan.

Five Top Budgeting Tips to Help You Pay Off Your Student Loan
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