6 Easy Ways to Pay Off Your Education Loan Quickly
Education loan is a way forward to achieve quality education, especially if you wish to do specialized course from any famous institution. However, the reality is that the education loan has to be paid back.
If you plan your actions comprehensively it will become a fairly simple task to pay off the loan and you will be in a better position over a period.
1. Downsize the Spending
This is a good way of initiating and fastening the process of loan repayment. When in college you generally do not put a cap on spending, irrespective of the fact that you will have to repay the loan. It will be in your interest to understand the fact that if you downscale the spending, the amount thus saved could be used to supplement the loan repayment installment.
Act smart and try to limit your spending when in college itself. This will help you repay the amount later. You can save some money every month and keep it in safe deposit to be added to loan repayment installment.
2. Encourage Automatic Withdrawal
You should enter into an agreement with the bank wherein automatic withdrawal is made from your account. This way you will know every month in advance about the repayment that needs to be made to the bank. By entering into this agreement, you will be in a position to manage your spending as you will know that certain amount has to go to the bank every month as part of monthly instalment.
3. Have knowledge on Loan Forgiveness Programs
In United States, the concept of loan forgiveness exists for certain segments of students. The details of the same are available on the web portal of U.S Department of Education. This rebate is available for public service workers, educators, nurses and government employees.
Cross check the website to know if you fall in any of these categories.
4. Double up the Payments
If and whenever possible try to double up the payment. This essentially means that you can pay two instalments in any given month. This is likely to reduce the interest rate and your loan repayment tenure will also reduce substantially. Try to make this a regular habit and you will be able to clear the education loan faster.
5. Start making payments immediately
Many times students who have taken loan delay the repayment deliberately. This habit should not be encouraged as it only increases your interest rate. The best thing is to ensure that loan repayment begins as early as possible so that loan repayment process is streamlined.
6. Put it on the priority list
You will never want the bank officials to land at your doorstep. The best way to do so is to put loan repayment on the priority list. If you do so, you are likely to repay the education loan within the stipulated time frame and will be able to fulfil the objective for which the loan was taken.