If you have student loan debt, you’re not alone. According to EducationData.org, there are 43.4 million borrowers with federal student loan debt and the average debt balance is over $37K. While it can sometimes feel like you’ll be in debt forever, there are a few things you can do to start lowering the amount you owe and stay on top of payments.
Cut out excess expenses
Take stock of your finances and make cuts where you can, allocating that money towards your student loan payments. The more you can put towards your debt each month, the faster you’ll pay it down.
Make on-time payments
The last thing you want is a late payment fee tacked on top of the amount you already owe. Set up automatic payments so you don’t have to worry about missing one. Plus, most lenders provide an interest rate discount when you sign up for auto pay.
Pay off loans with the highest interest rates first
If you have multiple student loans, work to pay off those with the highest interest rates first. And if you have money to make extra payments, put it towards these loans first.
Create a budget
Staying on top of your finances is huge when it comes to managing loan debt. With Brigit, we offer a suite of financial tools that will help you understand your spending habits so you can create a budget that meets your needs and goals.
Explore your repayment options
Many loans have options when it comes to repayment. You could choose an income-based repayment plan based on what you’re earning or a graduated repayment plan that increases every two years over the life of your loan.