It might be harder on your budget, but higher monthly payments will get rid of your debt quicker. The sooner you pay off debt, the less you'll pay in interest. Use this amortization calculator to see the breakdown between interest vs. principal payments.
Automate your payments
You can set up automatic payments so that money will be automatically applied to your student loan payment each month. Not only is this convenient, but it can save you money. Most lenders including the Department of Education offer a 0.25% rate discount if you set up auto payments.
3. Negotiate with your employer
It might seem surprising but your employer wants you to pay off student loans quickly too. Many employers like hospitals and other healthcare companies are offering very attractive student loan repayment benefits to dple, one of our clients gets $25,000 per year paid directly to his lender for 5 years.
Terms can vary based on employer, with some like Banner Health, a non-profit system, offering physicians that practice in a rural area $100,000 towards their student debt.
You'd receive this amount provided that you've worked for Banner Health for 5 years. If you leave after year one, then you'd only receive $20,000.
Keep in mind that the IRS considers employer loan payments to be taxable income with the exception safe online payday loans of $5,250 due to the CARES act. You might have to pay higher taxes and consult your tax professional for further questions.
It also prompted the government to pass the CARES act to help Americans properly manage this crisis. This act offers many benefits like paused RMDs, flexible retirement plan distributions, business funding, protection against eviction, and student loan relief. Read more