If you are just finishing your college degree and you took on some pretty hefty loans, you’re probably trying to figure out the fastest way to pay them back so that you don’t spend the rest of your adult life in debt. Indeed, student loan debt can really be a drag, and if you don’t pay them off relatively quickly, they can really take a toll on your credit score. If you’re not quite sure what your options are, here is how to repay your student loans fast.
Get a Job Fast
Whether you are just finishing your bachelor’s degree, or if you just earned UAB’s online masters in accounting, you’re probably feeling like you just want a few months to relax before you jump out into the work force. Unfortunately, this isn’t going to help you repay your student loans. If you want to get your student loans out of the way, and quick, then you’re going to want to find a job – a high paying job – as quickly as possible. Remember, the longer you wait to get a job, the more difficult it will be to get hired.
Pay as Much as Possible Each Month
As with any loan, you have the option to pay your loans off in small installments or in larger chunks. It may be hard to pay a lot each month when you’re not earning that much money yet, but the more you pay each month, the less you pay in interest over time. If you have a loan with a private bank and you have a variable interest rate, this could definitely hurt you in the long run. If you wait too long, then your interest rate could skyrocket within a couple of years.
Take on Another Job
You may already have a full time job and come home feeling exhausted each day, but if you really want to pay off those loans quickly then you’re going to have to suck it up and keep working. On the bright side, if there’s anything that you’ve always wanted to do, but dismissed it because it doesn’t pay very well, this could be an ideal part-time job. This way, you will be excited to go to your second job, and you will be able to earn enough to really make some headway on your loans.
See if You Qualify for Loan Forgiveness
If you have a federal loan, rather than a private loan from the bank, you might qualify for a student loan forgiveness program. It all depends on what you majored in and what you’re willing to do in terms of public service after graduation. If you majored in education, you could teach at a school in an underserved community for at least 5 years and have your loans forgiven that way. You could also join the military, volunteer for Americorps, or you could even enlist in the French Foreign Legion. There’s even more options than that, but it’s worth doing some research if you really can’t pay back your loans.