Paying Down the Student Debt

A handy guide to paying off student loans quickly and efficiently.

Student Debt by the Numbers

Student borrowers have accrued $1.2 Trillion in debt (US News)

Average student in class of 2012 took on ≈$27k in debt

Less than half of students graduate in under four years

…for these students, loans can soar.

What Now?

So you’ve just graduated… and maybe are looking at some serious loans

For many, this may be the first big financial responsibility

Debt is never fun– so how can you pay this off fastet?

Don’t be afraid.

A Few Tips on Paying It off Quickly

Business insider is offering some guidance

Tips coming from someone who paid of $74000 in two years!

Sacrifice

Set a timeline of payment and stick to it

Fancy gadgets aren’t necessary. Lay off some luxuries

Stay focused on the longer term…

… because all those goods of it will still be around when you’re debt free

Go Above and Beyond

If you can afford it, make more than the minimum payment

Maybe take up a part-time job to make extra payments

Cash Budget

Set a cash budget, say no more than $50/week

Live below your comfort level, as far as you are able

Got a nice bonus or monetary gift? But it right to loans

Multiply Payments

Besides paying more than the minimum, pay more often than monthly

This could just mean splitting up payment from monthly to bi-weekly

The more often you pay, the slower interest accrues

Start High

If there is no smaller loan to pay of relatively quickly…

Then start paying down the loan with the highest interest rate first

Now Get Out There and Get Motivated!