what's the fastes and easiest way to pay off my student loans?

Question

I have loans from college, and i don't want the burden of them for long. I want a quick way to get rid of them. how can i do this?

Answer 1

Hi I'm a financial planner by trade and I'm going to take a slightly different approach to this answer, although it's not the question you asked.

Although carrying debt can be emotionally troubling for some, from a strict financial standpoint, you're unlikely to ever have loans at a lower rate, especially if you consolidate. Also, student loans are not looked upon unfavorably when attempting to make other purchases, such as a house, while credit card and other debt is.

I encourage my clients with student loans to pay the minimum amount on the loan each month. If it can be stretched 30 years, you come out way ahead. First, for many the studen loan interest is tax deductable. Second, the rates that you borrow at are lower generally than the interest you can recieve on a good quality bond. So if you borrow at 6% and have an I Bond yielding 6.75%, you are making money by not paying off the loan. Especially considering the tax benefits fo the loan and the tax deferred status of an I Bond.

On a $50k loan given that scenario you could come out up to $20,000 ahead over 30 years by not paying the loan early.

To learn more about personal finance please check out my podcast, the #1 in the world for personal finance, www.promoneytalk.com

Hope this helps,

Jason

Answer 2

i do not propose to pry, yet how a lot money do you've and how enormous is the student loan? Your student loan is the biggest debt to pay off because in case you ever have a significant economic difficulty, your student loan can in no way be discharged in a financial disaster. once you've recommendations-blowing credit, some mastercard organizations provide 0% interest for purchasers with surprising credit. The transaction prices would or ought to no longer have a percentage decrease. you need to judge your mastercard provides including your 7.one hundred twenty 5% student loan situation to work out the way you actually pick to deal including your money. in case you do not have good credit, than mastercard organizations are not any further going to deliver you large deals.

Answer 3

Depending on your degree, you might be able to land a job with a signing bonus. You could then use the signing bonus to pay off the loans. Other than that, try to limit your expenses only to necessities and pay as much as possible on your loans. If you are able to make extra payments on your loans, they will be paid off faster.

Short of a signing bonus, winning the lottery or receiving a huge salary, I am not sure how you will get a lot of money to pay everything off. Budgeting will help. Best of luck.

Answer 4

It's not magic. The easiest & quickest way to "get rid" of loans is to repay them as timely and quickly as possible!

All loans charge interest on repayment. The longer you take to repay the loan, the more interest charges you will accumulate, and the more money it will ultimately cost you!

So if you pay more now, you'll pay back less overall later. It's that simple.

Answer 5

if you have extra cah during a month (even if it's $10) send an extra check to the loan provider with a note that says something like this:
Please accept this paymnet of $10 as payment on the principal of my loan.
Thanks
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if you pay on the principal a little, then the monthly paymenst go down, and interest isn't adding up. You can send an extra payment on the principal as often as you want, just send the note with that extra payment.

Answer 6

Maybe if you do it the way people who want to finish paying their mortgages early, pay more each month that the regular payment. You don't have to make 2 full payments but just a little more will help a lot.

Answer 7

I know that if you teach in a district designated as a high risk district (poverty, etc.) by the federal government (such as teaching on an Indian reservation), your student loans can be reduced and even forgiven all together.

Also, contact your senator and representative(s) and ask them the same question.

Good luck.

Answer 8

get a job and pay more than the minimum payment each month. duh