5 Ways To Lower Student Loan Payments
Lower Your Student Loan Payments
According to the Institute for College Access and Success, the average student loan debt is nearing $30,000. At Student Loan Service we know every penny counts when it comes to paying off thousands of dollars of debt. Here are a few quick tips on the best ways to lower student loan payments.
Organization
Start by getting organized and coming up with a concrete plan to pay off your debt. On average, 25% of recent grads are late on or miss their first loan payment. Creating a budget helps you avoid paying more than you already have to. It will also serve as your home base when it comes to lowering your student loan payments.
Check out a list of the best debt and budgeting apps here. (Hyperlink post on budgeting apps)
Pay More than the Minimum Payment
This might be tough for some, but paying more than the payment is one of the best to lower your monthly payment. Simply put, paying more than your monthly fee lowers your principal. Lowering your principal will reduce the amount of interest you’ll have to pay over the duration of the loan.
Start small here. Find ways to save a few bucks to put towards additional loan payments. Paying just an extra $20 a month can save you thousands of dollars in total interest.
Pay off Highest Interest Rates First
You’re focus is to save as much money as you can in the long run. Lower total student loan payments by tackling the most aggressive interest rates first.
Maintain a Good Credit Score
If you’ve been making monthly payments and don’t have any other credit card debt you may be at an advantage. Your credit score can qualify you for a lower interest rate when it comes time to refinance your loans.
Consolidate Your Loans
Loan Consolidation is a great option, especially if you have variable-rate private loans. Bunching all you’re loans into one single payment is easier to manage and can potentially lower your interest rate.
Student Loan Service makes this process even easier offering consolidation packages that fit your individual needs. To learn more about how to get started click here.
Disclosure:
Student Loan Service, Inc. (“Student Loan Service”) is not affiliated with any apps and makes no representations or warranties about any apps. Student Loan Serviceprovides links to other websites not affiliated with Student Loan Service, and is not responsible for the content of linked websites and cannot be liable for any injury or damages in connection with any of these apps or from visitors’ ability/inability to access the linked websites. App comparisons are provided for informational purposes only.
