Student loans are a necessary evil, but they can be a pain to manage. Even with income-driven repayment plans, you’re still left with loans that take years to pay off. If you want to get rid of your student debt faster, these tips will help you get there.
How to Settle $100k in student loans
Here are six tips to help you chip away at those balances.
Check if you’re eligible for forgiveness
If you work in a public service job or a qualifying non-profit, your student loan payments might be completely forgiven after 10 years of on-time payments. Check with your lender to see if this program applies to you.
Try income-driven repayment
Income-driven repayment plans can lower your monthly payments and stretch out your loan term — making it less likely that you’ll default on your loans and wreck your credit score in the process. Income-driven repayment plans also offer the possibility of public service loan forgiveness after 20 or 25 years of on-time payments (depending on the plan).
Refinancing is one of the best ways to save money on interest, but it has its drawbacks— you might lose access to income-driven repayment plans and have a cosigner attached to your account. If you’re not sure whether refinancing is right for you, check out some guides on student loan refinance.
Start with the highest-interest loan
If you have multiple loans, focus on paying off the one with the highest interest rate first so that you’re paying less on it every month, and it will soon be paid. This will free up more cash in your budget for other expenses and debt payments.
Add a cosigner (if necessary).
If you don’t think you’ll be able to pay off your loan in good time, contact your lender and ask about adding a cosigner to your account — someone willing to pay off part of your debt if you fail to do so.
Settling $100k in student loans is no easy feat. It calls for patience, dedication, and proper financial planning. The process may last 15 to 25 years, depending on your commitment.
Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of best payment providers. He also writes non-fiction on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice cream on his backyard porch, as should all right-thinking people.