How to zero your student loans

How to zero your student loans

Student loan is one of the top financial headaches that you will be faced with during your midlife crisis. Even though they may not seem like a big deal right now, trust us when we say, defaulting on them will at one point or the other land in you in hot water.

In order to help you take action towards zeroing out your student loans, we have a few tips here:

Set goals

Nothing in this world is accomplished without having the right mental attitude.
Start by reminding yourself of what you are paying for (your college education) and how great it would be to lift the weight of your student loans from your shoulders.

Review your loans and come up with a plan

Pay attention to each minor detail of your student loans. Make use of the many repayment calculators available and learn how much it is that you need to pay each month to be able to pay off your loans in a specific amount of time.

Decide on a budget and stick to it!

This might not sound very fun, but hey! It is all for the greater good. Setting up a budget and sticking out prepares you for the real world. Set up a reasonable budget that takes your living expenses into account and gives you room to start making payments towards your outstanding student loans.

Set up an emergency fund

Something terrible can happen at any point in time. Perhaps your trusty laptop stops working, or perhaps your car breaks down. An emergency fund should always be set up as a part of your budget, so that you don’t need to pull funds from other areas of your budget in order to deal with an emergency. Start by setting aside $500 for your emergency fund and slowly raise it to $1,000.

Make payments while in school

The sooner the better. There is no such things as starting too early when it comes to paying off your student loans. We suggest you that you start paying off your student loans, while you are in school. Instead of spending money on items that you don’t really need, put your extra cash towards a good cause – and there is no greater cause than getting an education.

It is very important for you to understand that some loans start accruing interests while you’re still in college, and by the time you graduate the amount grows so huge that it could take years and years of hard work to pay it off.

Seek help from your employer

While some employers offer to assist you with your student loans, there are some that even help with paying them off completely, as a part of your benefits package. Bring up the idea of paying your debt.

 

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