We have all heard that a good education is the key to getting ahead in life. We go to school and work hard so that when we graduate we will find a good paying job. A job that will not only help us pay off our student loans but, also help us achieve our American dream. Sometimes the dream can become a nightmare because jobs can be hard to find and we may not get the salary we are seeking. So how do you save and pay off your student loans?

How can I get rid of my student loans fast?

1
Step

Your first step is to figure out what kind of loan(s) you have and how to repay them. If you have a federal student loan you should check out the National Student Loan Data System  here you can look up your federal loans and their balances. This is the US Department of Education’s central database to keep track of all your federal student loans. It makes it easy to help you track what you owe them. To access your information you will need to have a student aid ID username and password. If you are a foreign student and you need information on your student loans you can contact NSLDS at 1-800-999-8219 or email them at nslds@ed.gov If you have private loans it may be a bit more difficult to access than federal loans.  You can however, get information from your credit report.  Go to annualcreditreport.com or (  call 877-322-8228) for your free credit report  from all 3 reporting bureaus (Equifax, Experian & Transunion).

There are 4 types of federal loan repayment plans

  1. Standard (loan companies divide up what you owe over a 10 year period).
  2. Graduated (This also like the standard repayment plan. It lasts for 10 years but, you start out paying less but, payments increases every 2 years).
  3. Extended (Pay a lower amount but for a longer period of time).
  4. Income Driven Repayment (Pay what you can afford.  You may be paying for a longer period of time). With this plan you need to certify your income every year.
2
Step

Stay Away From Forbearance: Sometimes we get into trouble and we cannot make the loan payments. The lender might suggest forbearance where loan payments are put on hold temporarily. This is not advisable because this is reported to the credit bureau and it will end up hurting your credit (and lowering your credit score)

3
Step

Get Organized: Make sure your lender has everything in your records accurately. Go over what you need to do to get back on track. No one said it would be easy but, take some time to investigate your options. Do your research so that you are well informed.

4
Step

Make A Plan: You may want to figure out how to make more money. Right now it may be difficult to find a new job but, consider a p/t job or a hobby that can make you money. Put any extra money you make on your debt.  This will help you increase your FICO score and help you pay down your debt faster.

5
Step

Be Careful of Loan Consolidation and Refinancing: Consolidating a loan is a process that rolls all your federal loans into one single loan payment. Refinancing a loan is similar but, it rolls all your loans into one private loan. These are very risky options. Consider using the income driven repayment plan. Do not get yourself into something that might be hard to get out of.

Student loans can help you open the door to new opportunities, but it is important to be responsible when managing you debt. Be pro-active! Always pay your debt on time and do not miss any payments.

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