NEW YORK, NY–(Marketwired – Jul 9, 2014) – A college education is needed to succeed more than ever before, but that also usually comes with large amount of student loans. Paying off student loans may seem like a daunting task, but there is no reason to become overwhelmed. Paying off student loans can be done easily, especially if it is done smartly. Creditnet, a leading financial expert, has announced the top tips for paying off student loans today. Following these steps will make sure that everyone will be able to get out of debt quickly.
Make A Budget
While almost everyone should be budgeting their finances, it becomes even more important when trying to pay off student loans. It is vitally important that a student loan payment is never missed to maintain good credit, and a budget is a great way to make sure that there is always enough money left to make the payments on time. Budgets do not take much time to create, and they can easily be adjusted over time based on income and other expenses.
Pay More Than Minimum Payment
There is no better way to get rid of your student loans than by paying more than the minimum payment each month. Most of the student loan payment loan every month will go towards paying off the interest that accrued that month. This leaves only a small portion of the payment going towards lowering the principal of the loan. Every dollar paid over the minimum will go directly towards eliminating the principal. There are going to be times when paying more on your loans may not be possible, but that is when the budget becomes very handy.
Enroll in Auto-Debit
Enrolling in auto-debit with a student loan company allows them to automatically deduct the payment from the desired bank account each month. Enrolling in an auto-debit payment system is a great way to make sure that a student loan payment is never missed, and it also usually comes with several other benefits. Since they know that they will be receiving their money each month, most student loan companies will provide a discount on the loan for enrolling in auto-debit. This discount usually comes in the form of a decrease in the interest rate on the loan. While a small reduction in the interest rate may not seem like much at first, but it has the potential to save thousands over the life of the loan.
Pay While in School
Most students want to focus on having the best college experience while in school, but making student loan payments while in school would benefit them immensely in the long run. Once a student loan is received, the interest on the loan starts to add up. Paying down the interest while in school will reduce the loan balance and monthly payments after graduation. While most college students do not have much money, the interest payment should be low enough to fit into most budgets.
Volunteering with the Peace Corps, AmeriCorps or another major volunteer company is a great way to reduce student loan payments. Peace Corps members can have up to 70 percent of their federal student loans removed at the conclusion of their volunteer service. Peace Corps also pays all of their volunteers approximately $7,5000 after two years of service. AmeriCorps allows their volunteers to stay in the United States during their service, and the service payment is received after only one year. Their bonus payment fluctuates each year, but it is usually around $6,000.
For more information about student loans, access Creditnet: http://www.creditnet.com/
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