Introduction
Student loan debt is a huge problem in the United States. According to the Federal Reserve, the total outstanding student loan debt in the US is now over $1.5 trillion. That’s trillion with a “T.” It’s more than auto loan debt and credit card debt.
In fact, it’s the second largest form of consumer debt in the country, behind only mortgage debt.
The average student loan borrower owes around $28,400. But that’s just the average. There are millions of Americans who owe much more than that.
In fact, there are over 8 million Americans who owe more than $50,000 in student loan debt. And there are nearly 1 million Americans who owe more than $100,000.
So if you’re struggling with student loan debt, we are going to share a few tips to help you pay off six figure student loan.
How To Pay Off Six-Figure Student Loan Debt?
If you’re one of the millions of Americans with six-figure student loan debt, you’re probably wondering how you’re ever going to pay it off. While it may seem daunting, there are some steps you can take to make the process a little bit easier.
First, make sure you’re on a repayment plan that works for you. There are a variety of repayment plans available, so find one that fits your budget and your lifestyle.
Then, start making extra payments whenever you can. Even an extra $50 a month can make a big difference over the life of your loan.
Next, consider refinancing your loans. This can help you get a lower interest rate and save money over the life of your loan.
Be sure to shop around and compare rates before you refinance, though, as there are a lot of different lenders out there.
Finally, don’t be afraid to ask for help. If you’re struggling to make your payments, reach out to your lender or a financial advisor for help.
They can work with you to create a budget or come up with a plan to get your loans paid off as quickly as possible.
10 Strategies To Pay Off Student Loans Fast
1. Make a budget:
The first step to paying off your student loans is to figure out how much money you have coming in and going out each month. This will help you determine how much extra you can put towards your loans each month.
2. Create a repayment plan:
Once you know how much extra you can put towards your student loans each month, create a repayment plan. It could involve making the minimum payment on all of your loans except for the one with the highest interest rate, which you would pay off first.
3. Automate your payments:
Once you have a repayment plan in place, automate your payments so you don’t have to think about it each month. This will help you stay on track and ensure that your loans are being paid off as quickly as possible.
4. Make extra payments when you can:
If you come into some extra money, whether it’s from a bonus at work or a tax refund, apply it towards your student loans. Any extra money you can put towards your loans will help reduce the overall amount you have to pay back.
5. Refinance your loans:
If you have good credit, you may be able to refinance your student loans at a lower interest rate. This will save you money in the long run and help you pay off your loans faster.
6. Consider income-driven repayment plans:
If you’re struggling to make your monthly loan payments, consider an income-driven repayment plan. These plans base your monthly payment amount on your income and family size, which can make it more affordable.
7. Pay off your loans with the highest interest rates first:
Another strategy for paying off your student loans is to focus on the loans with the highest interest rates first. By doing this, you’ll save money in the long run and can get rid of your loans more quickly.
8. Make biweekly payments:
Instead of making one monthly payment, consider making biweekly payments. This will help you stay on track and can speed up the process of paying off your student loans.
9. Use windfalls to pay down your debt:
If you receive a windfall, such as a bonus from work or a tax refund, apply it towards your student loans. This will help you pay off your debt more quickly and can save you money in the long run.
10. Stay motivated:
Paying off student loans can be a long and difficult process. It’s important to stay motivated throughout the process so you can stick to your repayment plan and reach your goal.
How To Get Student Loan Forgiveness?
There are a few ways that you can get your student loans forgiven.
- One way is to work for a government or non-profit organization for 10 years.
- Another way is to become a teacher in a low-income area for 5 years.
- You can also get your loans forgiven if you become a doctor or nurse and work in an underserved area for 2 years.
- If you have a disability, you may also be able to get your loans forgiven.
- One way is to work in a public service job for 10 years.
- Another way is to join the military.
If you are unable to pay back your loans, you can also get them forgiven through bankruptcy.
How To Make Student Loan Payments Easier?
There are a few things that you can do in order to make your student loan payments easier. One option is to consolidate your loans. This will allow you to make one monthly payment instead of multiple payments.
Another option is to enroll in an automatic payment plan. This will ensure that your payments are made on time each month.
You may also want to consider refinancing your loans which can help you get a lower interest rate and lower monthly payments.
How To Pay Off Private Student Loans?
If you’re struggling to pay off your private student loans, you’re not alone. In fact, according to a report from the Consumer Financial Protection Bureau, more than 4 in 10 borrowers who have private student loans are either in default or behind on their payments.
There are a number of reasons why you may be having trouble making your payments, but whatever the reason, there are some steps you can take to get back on track.
1. Talk to your lender
The first step is to reach out to your lender and explain your situation. Many lenders are willing to work with borrowers who are having difficulty making their payments.
For example, your lender may be willing to temporarily lower your interest rate or extend your repayment term. These options can make your monthly payments more manageable and help you get back on track.
2. Refinance your loans
If your lender isn’t willing to work with you, or if you’re still struggling to make your payments, you may want to consider refinancing your loans.
There are a number of companies that offer student loan refinancing, and they can often give you a lower interest rate or a longer repayment term. It will help you save money on your loans and make your payments more affordable.
3. Consider consolidation
If you have multiple student loans, you may want to consider consolidating them into one loan. This can make your payments more manageable and may even give you a lower interest rate.
There are a number of companies that offer student loan consolidation, so be sure to compare your options to find the best deal.
4. Make extra payments
If you’re able to, making extra payments on your loans can help you pay them off more quickly. Even an extra $50 per month can make a big difference over the life of your loan.
5. Look into income-driven repayment plans
If you’re having trouble making your payments, you may want to look into an income-driven repayment plan. These plans base your monthly payment on your income, so if you’re not making much money, your payments will be lower.
There are a number of income-driven repayment plans available, so be sure to research your options to find the one that’s right for you.
6. Seek out the assistance
If you’re struggling to make your student loan payments, there are a number of organizations that can help.
For example, the National Foundation for Credit Counseling offers free and low-cost counseling to help borrowers manage their debt.
There are also a number of government programs that can help, such as the Public Service Loan Forgiveness Program and the Income-Based Repayment Plan.
If you’re having trouble making your student loan payments, don’t hesitate to reach out for help. There are a number of resources available to assist you.
How To Get Out Of Default On Your Student Loans?
If you’re in default on your student loans, don’t despair – there are options available to help you get out of default and back on track. The first step is to understand your options and then take action to get out of default.
The first thing you need to know is that there are two types of default: federal and private. Federal student loan default occurs when you have failed to make payments on your federal student loans for 270 days.
Private student loan default occurs when you have failed to make payments on your private student loans for 120 days.
If you’re in federal student loan default, you can get out of default by either repaying your loans in full, entering into a repayment plan or consolidating your loans.
If you’re in private student loan default, you can get out of default by either repaying your loans in full or consolidating your loans.
To get out of federal student loan default, you can repay your loans in full. This option may not be realistic for everyone, but if you can afford it, it’s the quickest way to get out of default.
If you can’t afford to repay your loans in full, you can enter into a repayment plan. There are several repayment plans available, and you’ll need to select the one that’s right for you based on your financial situation.
You can find more information about repayment plans on the U.S. Department of Education’s website.
If you’re unable to repay your loans under a repayment plan, you can consolidate your loans. Loan consolidation allows you to combine your federal student loans into a single loan with a single monthly payment.
You can find more information about loan consolidation on the U.S. Department of Education’s website.
To get out of private student loan default, you can repay your loans in full. This option may not be realistic for everyone, but if you can afford it, it’s the quickest way to get out of default.
If you can’t afford to repay your loans in full, you can consolidate your loans. Loan consolidation allows you to combine your private student loans into a single loan with a single monthly payment.
You can find more information about loan consolidation on the U.S. Department of Education’s website.
If you’re struggling to make payments on your student loans, don’t wait until you’re in default to take action. There are options available to help you stay current on your loans.
You can find more information about these options on the U.S. Department of Education’s website.
Conclusion
If you have six-figure student loans, you’re not alone. In fact, you’re part of a growing trend. According to a report from the Institute for College Access & Success, the average student loan debt for graduating seniors in 2018 was $29,200.
That’s up from $28,950 in 2017 and $27,975 in 2016.
In this blog, we have shared some great ideas that can help you pay off your six-figure student loans! So try to keep following and join our newsletter for more information and problem-solving blogs.