“Student loans is not GOOD debt. Get rid of it!!”
-Jeanetta
If your anything like me, your student loan balance may be overwhelmingly large. At the start of the debt snowball, I really didn’t see how I could pay off $50,000 worth of student loans. I really thought it was IMPOSSIBLE! As of today, I have $12,000 left in student loans.
Today, I come to tell you that it is not impossible to pay off your student loans. It will take a lot of strategic planning, sacrifice, and budgeting but it is possible. Here are my top 10 tips for paying off student loans.
1. Get on a budget.
Develop a written budget monthly. This will allow you to see where your money is going daily.
2. Know your student loan balances.
Check your student loan balance daily. Know your exact balance and how much interest is charged daily.
3. Know who your lenders are.
Do you have loans with Sallie Mae, Fedloan, Nelnet, Navient or other providers? If you are unsure, pull your credit report with credit karma for free.
4. Use the Debt Snowball.
If you have several student loans, I highly recommend using the debt snowball method to pay off your debt. This method will allow you to experience quick wins. With the debt snowball, you list out all of your student loans out from smallest to largest despite the interest rate and you pay off the smallest one as quick as possible.
5. Get your unpaid interest low and keep it low.
When you are paying off your student loans and making larger payments, the money will be applied to interest first then your principal balance.
6. Cut categories from your budget.
By cutting categories from your budget, you will be able to use that money to tackle your student loan balance. Get rid of unused subscriptions, reduce entertainment budget and personal spending.
7. Make extra payments on the principal balance.
Once you get the interest balance low, you will now see your principal balance begin to decrease monthly. This is where you become addicted to crushing Sallie Mae out of your life.
8. Raise your income.
If you are really gazelle intense about paying off your student loans, you will pick up overtime or get a second job. Any extra income you receive should go directly to your student loans.
9. Research loan forgiveness programs.
Find a program that will specifically work for you and your career. I do not recommend the Public Service Loan Forgiveness Program. Very few people have had success with this program and who wants to put their life on hold for 10 YEARS!! I highly recommend looking into programs that require 1-5 years of commitment.
10. Stop taking out Student Loans.
The key to decreasing your student loan balance is to stop taking out student loans.