Affording higher educational expenses is not possible by every parent and to stay self-sustained without putting any burden on their parents most students prefer taking student loans for their education. These loans have helped most students to complete their education without facing any financial hurdles.
The repayment process for these loans consumes much time that might last up to years increasing the burden of repayment. If you also possess a student loan and are looking out for ways to reduce the loan then here are top 5 tips that can help you in the process:
1. Increase the regular payments towards the loans:
Try to make extra payments than the regular amount of the loan as this will help you in completing the loan earlier. The minimum amount which must be paid is generally the amount which has incurred due to the rate of interest. Track your expenses and create a budget plan by cutting out all the extra expenses that you can and use them to repay the loan amount. Even a small payment each month will help in reducing the loan amount significantly. If you receive any bonus money you can divert it towards the repayment of the loan. This will make quite a lot of difference to close the debt as soon as possible.
2. Look out for student loan forgiveness programs:
Check out from your state or federal government whether you qualify for the student loan forgiveness programs. There are many agencies that provide assistance to the people who are unable to repay the student loan debts. The only eligibility criteria that they require are your commitment to serve with them for a specified time span. You can do a little research about such programs and get details about it. If you are lucky enough and successful to make use of these programs then your task is almost completed and you can relax about your repayments as the government will take up your responsibility.
3. Negotiate your student loan balance:
You can also negotiate to reduce the student loan amount that you have. If the loan is through a private lender ask them to eliminate any fees associated with the loan and reduce the interest rate charged on the loan. Be wise while you converse with him and explain clearly why you are in need of a concession. If you can gain their trust then they will definitely try their level best to help you out wherever possible.
4. Consolidate your student loans:
If you owe more than a single student loan then you can go for consolidating your different student loans. This will help you in reducing your overall interest rates associated with the loan. Even half percent reduction in the interest will help you to save a good amount of money and repay the loan easily.
5. Look for employer benefits:
You can look out for a job where the company agrees to pay off the student debt or provide advances or bonuses that will help you in repaying the amount easily as a part of the employee benefits. If you succeed in getting such a job then you can repay the loan without any hassle. If at any instance you fall short of money to make the payment then you can apply for payday loans and easily get approved for it as you are employed. A payday loan is a short-term and unsecured loan. The lenders offer flexible repayment plans on your gentle request. So you can get rid of this loan easily and it will not become a burden for you. They are also known as bad credit loans as they approve cash advances even for people with bad credit. You can now use that cash to carry out the payment process. By utilising this opportunity you can close your student debt loan and avoid bad credits.
This guest post is written by Alicia who is a specialist in financial blogging from www.crazypayday.co.uk. Reach her at @financeport