September 26, 2014 | By RGR Marketing Blog

Still Paying Off Student Loan Debt? Here's a Few Tips

For those who hope to bolster their earning potential and gain entry into fields where education is a must, going to college and earning a degree is a foregone conclusion. Few would dispute the notion that attending a university is time well spent, or that higher education is a generally sound investment. That said, it is an investment, and it can be a sizable one at that.

Some college graduates spend half their lives or more repaying student debt. That’s a long time, and it ends up being a lot of money. Here are five things you should know about paying off student loans, whether we’re talking about undergraduate or graduate education.

Automatic Debit for Student Loan Payments Is a Lifesaver

If you have federal student loans, you should definitely take advantage of automatic payment options. Depending on the types of loans you’re paying off, automatic debit may save you .25% on your interest rate. That doesn’t seem like much, but every little bit helps. Not only that, but automatic debit ensures that your payments will be made on time, every time, so you won’t have to worry about forgetting an installment, and potentially damaging your credit rating.

Student Loan Consolidation Can Ease the Burden

Consolidating student loans isn’t for everyone, but it does have certain attractive advantages. For one, it allows those who are struggling with cash flow issues to lower their monthly payments by extending the period of the loan, or by renegotiating interest rates. For another, loan consolidation allows multiple federal student loans to be consolidated into one monthly payment.

Whenever You Can, Pay Extra on Your Student Loan

The idea of ponying up extra cash that you’re not actually required to pay may not sound like your idea of a good time, but paying a little bit extra each month will help you chip away at your student loan debt faster. Even if it’s an extra $20 one month, or a spare $50 the next, it all adds up to faster repayment, and lower overall costs through the life of the loan.

Look Into Student Loan Forgiveness

Loan forgiveness programs are available for those working in education, the armed services, and several other fields. These programs have relatively strict qualification criteria, so it’s best to research them before applying. That said, for those who do qualify for these programs, they can be a real boon, helping former students to save thousands of dollars, and speeding up the loan repayment process.

Delaying Student Loan Payments Has Consequences

For those who struggle to make payments on their student loans, forbearance and deferment can seem quite attractive. They allow you to make lower payments for a period of time, or to delay loan repayment altogether. For those who anticipate landing a higher-paying job in the near future, these choices can work out well. But it’s important to remember that interest accrues on student loans the entire time they’re in deferment.

[Photo Credit: PaydayLoanCook]

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