Student loan debt is a significant issue in the United States. According to recent studies, Americans owe more than $1 trillion in student loans. That’s a lot of money! If you’re one of the millions of people struggling to repay your student loans, don’t worry – we have six repayment strategies that could save you money!
1. Lower your monthly payments
If you’re struggling to make your monthly student loan payments, you can request a lower payment plan from your lender. This will reduce your monthly payments, but it will also extend the length of your loan and increase the interest you’ll pay over time.
Minimum payment plans are usually only available to borrowers with federal student loans. If you have private student loans, you’ll need to contact your lender to see if they offer flexible repayment options.
Federal loans
Also, offer income-driven repayment plans, which base your monthly payments on your income and family size. These plans can lower your payments to as little as $0 per month, depending on your financial situation.
Private student loans
Private student loans typically have lower interest rates than federal student loans, so consolidating your loans could save you money in the long run.
2. Consolidate your loans into one manageable payment
If you have multiple student loans, consolidating them into one can save you money in the long run. This is because you’ll only have to make one monthly payment instead of multiple payments, and you may be able to get a lower interest rate. You can consolidate your loans through a private consolidation loan or the federal Direct Consolidation Loan program.
Applying for a private consolidation loan:
If you have multiple student loans, consolidate them into one loan for a lower monthly payment. You can do this by applying for a private consolidation loan. When you consolidate your loans, you may be able to get a lower interest rate and will only have to make one monthly payment instead of multiple payments.
Pay off student loans early:
One way to save money on your student loans is to pay them off as quickly as possible. The sooner you can pay off your loans, the less interest you’ll have to pay. You can do this by making extra payments on your loan or by refinancing your loan for a lower interest rate.
Refinance student loans:
Refinancing your student loans can save you money in the long run. When you refinance your loan, you’ll get a new interest rate and may be able to lower your monthly payments. You can also extend the length of your loan, reducing the interest you pay over time.
3. Get a lower interest rate, which will save you money in the long run
If you have good credit, you may be able to qualify for a lower interest rate on your student loans. This will save you money in the long run, as you’ll pay less interest over the life of your loan. You can apply for a private consolidation loan or refinance your existing student loans through a private lender.
Principal balance :
The principal balance is the amount of money you borrowed, minus any interest and fees that have been added to your loan. Your monthly payments will go towards paying off the principal balance of your loan.
Student loan interest rates:
If you have student loans, you may be able to get a lower interest rate if you consolidate your loans or refinance them through a private lender. This will save you money in the long run, as you’ll pay less interest over the life of your loan.
4. Take advantage of student loan forgiveness programs
If you work in a public service or non-profit job, you may be eligible for student loan forgiveness after making 120 monthly payments. There are also other forgiveness programs available for teachers, nurses, and doctors. For more information, check out our guide to student loan forgiveness programs.
Private loans and student loan forgiveness :
You may still be eligible for student loan forgiveness if you have private loans. Several forgiveness programs are available for public service and non-profit employees, teachers, nurses, and doctors.
Public service loan forgiveness :
You may be eligible for the program if you work in a public service job. This program forgives the remaining balance on your student loans after you make 120 monthly payments. To qualify, you must work full-time for a government or non-profit organization and make 120 qualifying monthly payments.
Nurse Faculty Loan Repayment Program :
The Nurse Faculty Loan Repayment Program offers loan repayment assistance to nurses who teach at an accredited nursing school. To qualify, you must be a full-time nurse faculty member and have an outstanding balance on your student loans.
Doctors Without Borders/Médecins Sans Frontières :
You may be eligible for student loan repayment assistance if you work for Doctors Without Borders/Médecins Sans Frontières. To qualify, you must have an outstanding balance on your student loans and be a full-time employee of the organization.
Student loan refinancing :
If you have good credit, you may be able to qualify for a lower interest rate on your student loans. This will save you money in the long run, as you’ll pay less interest over the life of your loan. You can refinance your existing student loans through a private lender.
Refinancing your student loans could save you thousands of dollars in interest costs over the life of your loan. If you have good credit, you may be able to qualify for a lower interest rate. You can apply to refinance your loans through a private lender.
5. Delay payments if you’re struggling financially
If you’re having trouble making student loan payments, you can request a deferment or forbearance from your lender. This will allow you to postpone or reduce your payments temporarily. Keep in mind that interest will continue to accrue on your loans during a deferment or forbearance, so this option should only be used as a last resort.
6. Get a higher loan amount to cover additional education costs
If you’re still in school and need additional funds to cover your education costs, you can apply for a private student loan or an increase in your federal student loan limits. This will give you extra money to work with, but it will also increase your overall loan balance.
The Bottom Line:
Several repayment options are available to help you save money on your student loans. You can lower monthly payments, consolidate loans, or get a lower interest rate. If you’re struggling financially, you can delay your payments or get a higher loan to cover additional education costs. EdFed has some great options for student loan refinancing!
