Kathryn
How do you pay off student debt quickly?
I think that this is the question we all are asking. xD #studentdebt #studentloans
3 answers
Kevin Hsu
Kevin’s Answer
In my first few years post-school, I dialed back my life-style. I cooked 6 days a week, used public transportation, and had roommates. The additional savings from these went to making additional student loan payments. Make sure to not apply all of it to additional student loan payments as you still want want to enjoy yourself and with friends! I left enough money around where I could still go on one nice long vacation with friends/family every year while making additional payments on my student loan debt.
Katie Burell
Katie’s Answer
While I was in school, I made interest payments on my loans to help keep the cost of my loans down.
After graduating from school and getting settled in my new job, I put my focus on paying off the small amount of credit card debt I had from school. I next focused on my student loans and paid more than the minimum required each month. My credit card debt had a higher interest rate than my student loan, so I felt it was important to pay it off first.
I received a bonus a few years into paying off my loans that was for approximately the same amount as I still owed, and I took it as a sign and made one big final payment. If you are still able to claim your student loan interest payments on your taxes, you may want to avoid paying them off and concentrate on paying off your car loan or other debt. You should also take into consideration the interest rates you are paying on the various sources of your debt to help you decide what to pay off first.
Simona Hunt
Simona’s Answer
I recommend paying before the loans are due. You can pay on the principal and by the time you graduate your loan balance is lower. Once you graduate, you can see about refinancing your loans at a lower rate and still pay the original monthly amount to pay off even faster.