Student loans seem to go on forever. The debt does not seem as real when you are taking out this “free money”. However, as time goes on, you’ll realize that paying your student loan debt off as fast as possible will save you hundreds to thousands of dollars in interest. Below are four methods to help reduce your student loans faster than paying the minimal payment due.
Save Money in a Jar
It’s not the most popular or easy option, but if you save money in a jar, turn it over at the end of the month to your bank. Then, apply it directly to your student loan payment. The best way to put the money in there and keep it in there is to make a game out of it or reward yourself.
- You and your family can drop all your $1, $5, or $10 bills in the jar each day
- Dump all your change at the end of the week into the jar
- Pay the jar each time you stop and get coffee
- Pay the jar each time you don’t exercise
Donate Your Time
If you sign up for eligible programs, you can donate your time, give back to the community, and reduce your student loan debt. SponsorChange.org allows college grads the opportunity to donate their skills to help nonprofit organizations. In return, a portion of their student loan debt gets reduced. For each project, they will earn between $10-$20 per hour. The money does not go directly to them, but is being applied directly towards this student loan debt.
Check Out the Student Loan Forgiveness Program
There are a few programs to check out to reduce some or all of your Federal student loans. These are a part of the student loan forgiveness program. You must work in a particular industry such as a public school or for a certain employer, such as with AmeriCorps or the Peace Corps. Your debt will be forgiven after 10 years of on-time payments while you are working in these sectors.
Relocate
Another interesting program run by the local authority of rural and town areas are their relocation programs. Kansas, for instance, will pay 20% of a person’s student’s loan up to $15,000 for new graduates to move to designated areas in their Rural Opportunity Zones.
The above four methods will help you reduce your student loans without needing a second job.
I like the concept of “pay the jar.” I would advice my sister who is paying her student loans to do this.
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My wife and I just paid off our student loans last year. It really did feel like we have been paying for ever.
It is such a relief to be done with them.
Funny thing is that once you pay off your student loans your credit score will take a hit. It shows you how screwed up our credit system is.
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