How to Pay Off Student Loans Faster While You’re in School

Student loans feel like an unavoidable aspect of adulthood. They’re more expected than having a mortgage in your 30s, and most teenagers are already aware that they’ll have at least $10,000 in loan debt before they’re even old enough to legally drink. The American student debt crisis is a major concern for millions, with 30-somethings expecting to still be in debt until their late-50s. It’s only natural that you’re looking for ways to pay off as much debt faster, and that’s what this guide is all about. With some creative problem-solving and an exercise in self-discipline, you can lower your student debt before you even graduate.

Consider Borrowing Private Loans

Private student loans can help you closely manage your finances rather than being subjected to the standard interest rates. When you choose the right lender, you can determine how much you borrow, what you send back and even how much you keep in your own pocket after the lender disperses funds to your school. You also get the option to refinance or consolidate after graduation. Refinancing student loans allows you to pay off all your debt by taking out one new loan to cover all the rest. This results in lower monthly bills, greater savings, and a fixed interest rate that saves you more money over the entire length of your loan.

Stay on Your Parents’ Plans

You can be on your family’s health insurance until age 26. You may also opt to remain on their phone plan until you graduate. Even if you contribute to the bill, the total cost will be lower than what you’d have to pay on your own. The same goes for credit cards. Using theirs but covering the charges each month can save you money. You can build a small savings account that you use to put toward loans after you graduate.

Pay Off Small Debts Now

Pay off any small debts you have now, so you only need to focus on loans after you graduate. This means credit cards, medical bills, and your auto loan should be top priority while you’re still enrolled in college. Consider finding ways to make money online that suit your academic demands so that you can chip away at these smaller bills, easier. You should also consider the effect long-term investments will have on your future paycheck. Make sure you don’t put yourself in any vulnerable positions. For example, what would six months of unpaid job hunting do to your outstanding bills? Only make financial calls that you can reasonably afford to pay for the next half-year. If you work part-time, don’t quit your job after you earn your degree unless you have a better position lined up.

Sign Up for Autopay

If you have a cell phone contract, insurance, or anything else in your name, look into autopay discounts. You can also use automatic payments to optimize your budget. When you know a specific amount is coming out at a determined time, you can get a clearer picture on how many residual funds you’ll have to work with every week.

Embrace a Simpler Lifestyle

Scaling back and pinching pennies in your 20s has a major benefit. Living modestly in college looks like not wasting money on nights out every weekend, not automatically needing the latest iPhone and really thinking about the value of what you buy. You should still enjoy the little things, but look for ones that don’t always come with a price tag. You may surprise yourself with how much you can keep in the bank when you don’t default to spending.