What are some strategies to pay off your student loans faster?

Income driven is the plan that works for me. If my income goes down, so does do my payments. It can be adjusted as your income is affected.

I used the Changed app which rounds up every purchase I have an puts it aside. Once I have $100 saved it automatically makes a payment. I can also schedule additional funds to come out beyond that. So far it’s reduced my loan by an additional $3000 without making a huge impact on my daily budget.

Make extra payments: Make additional payments on top of your minimum monthly payment. This will help you pay off your student loans faster and save money on interest over the life of your loan. Refinance your student loans: Refinancing your student loans can help you get a lower interest rate, which can save you thousands of dollars over the life of your loan. However, be sure to carefully consider the terms of the refinancing agreement before signing on. Apply for student loan forgiveness: Depending on your profession and the type of loans you have, you may be eligible for student loan forgiveness programs. Check with your loan servicer to see if you qualify.

Attack the principal relentlessly. The principal is essentially the loan’s lifeline. Ensure that extra payments are applied directly to the principal by discussing this with your loan officer. Request regular reports on the progress of your loan repayments. With most people being visual learners, seeing accelerated rate of decline in the loan balance build momentum and encourage you to continue.

Be extremely careful when "refinancing" or "consolidating" your loans. If you consolidate with a PRIVATE company, you will be ineligible for income driven repayment or forgiveness. You may consolidate your loans through federal student loan servicers and still be eligible for these federal programs, but you must ensure that you go through Federal Student Aid website and not a private lender.

Refinancing should be done with extreme caution. If you refinance from federal to private loans you may lose out on opportunities for public service loan forgiveness, economic hardship deferrals, and the ability to move into an income-based repayment plan. One never knows when they will become unemployed or underemployed in today's market. Also, note that anyone who had a privately refinanced loan did not have payments deferred during COVID.

Applying for and receiving credit for the federal Public Service Loan Forgiveness program has never been easier! Recent changes have made the entire process to be much more inclusive - from registration to getting monthly credit for periods that were previously ineligible. If you could be eligible and have not signed up, it's worth another look!

I have never lowered my payments because I was able to remove a loan -- but the very first month in which I didn't have to pay that loan I would use just that budgeted allocation to something rewarding for myself. So say the monthly allocation for one of the loans that was paid off was $120, then the very next month I would spend $120 on myself to celebrate. It just reconfirmed that "yes, once they are all gone, I could have these experiences more often" which just motivated me to pay off the next one...and the next one...and the next one.

Two ideas: 1: To reduce the amount you owe, consider making payments while your loans are in their grace period. If you find you have extra money while in school or before your loans go into repayment. Use it to reduce your loan balance before interest starts to accrue. 2: Ask your employer about student loan payment matches or reimbursements. Some employers will reimburse you for a portion of your student loan payments as part of a health and well-being program. If they do, maximize your payment amount to account for the reimbursement. As an example, if you can afford a 400 payment and your employer will reimburse you at 50% you actually have 600 (400 from you and 20 from the employer) that you can apply to your loan each month.

This quote from Albert Einstein hints at a powerful philosophy that parents and students should consider when planning for college: “Smart people solve problems, geniuses prevent them.” Consider working with your student on a strategy for attending college that minimizes the amount of debt needed to find that degree. Consider working with a higher education consultant with a proven track record of helping students effectively prepare for college. By taking a strategic approach to the college planning process during sophomore year of high school, families can increase the likelihood of their students receiving financial support for college.