Reduce student loan debt – If you just graduated college you’re most likely now on the journey to find a career and to start paying off those student loans. A student loan is money owed that was lent during the time of studies. Most individuals in the United States need to take out a loan to be able to pay for the expensive college path. Here are 6 tips to help reduce your student loans. Debt relief is something that can be accomplished with a payday loan. Payday loans are when a loan consolidation reduces your monthly payments. This will give a person debt relief by not having to pay such a high rate monthly for their loan.
1) Income Driven Repayment:
There are four types of categories in which this can fall under. The four types are: Income-Based Payment(IBR), Pay As You Earn(PAYE), Revised Pay As You Earn (REPAYE), and lastly Income-Contingent Repayment (ICR). The income driven payments have the ability of lowering your monthly rates to 10-15% depending on your income that month. This can provide fast debt relief but the interest will occur in the federal loans. Depending on your situation this can income driven payment can be effective long term.
Also another thing is to apply for loan forgiveness and this will take effect in 20-25 years. The only thing you will need to responsible to pay is the income taxes on the loans.
2) Student Loans Forgiveness:
Student loan forgiveness is a viable option but there are a few requirements that must be made before the federal government forgives the loans. First you must have made a minimum of 120 monthly payments while working a full time job in a qualified public service or non-profit employer. If you come across companies that will forgive the entire loan look the other way because it most likely is a scam because no program will get rid of your entire student loan. There is a form at the US department of Education
that must be submitted to see if you’re eligible for the student loan forgiveness.
3) Payday Loan:
A payday loan is when you can get quick cash at a high interest rate (APR). This occurs when waiting on a paycheck and you need money. It’s usually triple digit interest rates therefore be sure to pay these back as quick as possible. Be sure to find out how these loans work in your state because each state has their own laws. It is estimated that roughly 2.5 million households take out these loans each year. Therefore you’re not the only one taking out these loans. Pay off student loans with that money that was lent knowing that your next pay check is coming to pay it off. Payday loans have an average of lending of $350 and you must pay that in two weeks. A payday loan can help relieve that stress to making payments on time. Debt relief is the main goal to pay off student loans. A payday loan must be taken out with responsibility because this is not free money you must pay it back. A payday loan is a great tool if you have income coming in but don’t have the capital in that moment to pay off student loans. Payday loans are usually very easy to get but they do not lend out that much money to first time customers. You must build a better relationship with the lender before they lend you bigger amounts.
4) Private Student Loans:
When paying for college or grad school the best things to use first are those grants and scholarship money. Then try the federal loans and if those won’t lend the money try a private student option. Private loans may not come with protections therefore be very careful when choosing private student loans. If you can find the right lender at the right interest rate then this is a great idea. This will require more investigation and thinking. This can help pay off student loans. In most cases the interests rates will be lower of those from the federal sector. This will depend on the co-signers credit score and income. A low interest rate can help pay off student loans much faster.
5) Lump-Sum Payment:
This is great when you’re making more money than the minimum. If you have extra income coming your way paying more than the minimum will make paying off the loan much faster. Make the payment to the principal amount not for the next month this will reduce the interest rate. Also by using a payday loan this can be put towards the principal but you will need to payback the payday loan. This will cause debt relief because you will know that you’re lowering the interest rate. Debt relief is the main goal when paying off loans. Having that extra income or using a payday loan can increase that debt relief.
6) Refinance Student Loans:
Lowering your interest can be achieved by refinancing your student loans. This will make your monthly bill less and you will save thousands in interest. This will increase your debt relief knowing that you have an extra thousands of dollars. The best time to do this is when you find interest rates lower than the one you currently have. There are no penalties when this occurs and no prepayment delay therefore you can get right to paying off those loans. Right now the interests rates are exponentially low at 1.9% APR.
These six tips can help reduce those student loans and increase your debt relief. Having less worry about that check to check lifestyle. By implementing these tips can help you save thousands of dollars each year. The main goal is keeping your interest rate low. This can be done by paying your principal with extra income. Paying off your loans will not be easy but these tips and tricks will reduce your time paying them and make it less stressful.