Full disclosure: Like many of our readers, I’m a student loan borrower. And even though I’m only a few years into my repayment for $23, 000 of student loans – I’m already sick of it. Aside from student loan payments sucking up much of my extra income, seeing my monthly student loan bill is a constant reminder of just how much farther I have to go before I’m debt free. Seeing that far-distant debt free date is aggravating, so I think I speak for many when I say: ARRGH.
But there is a bright side to regularly checking in with my progress timeline. Monthly payments and milestones are also incredibly effective motivators. Yes – seeing the timeline of repayment can feel frustrating, but it also means that I’m motivated to boot these payments for good and I’m ready to go about it as efficiently as possible.
I want you gone, student loan debt! It’s only a matter of time…
Realizing the longevity of your debt repayment is a challenging fact to face but can also help you organize your plan of action so that you can finish paying off your student loans as quickly as possible. After all, I have other things I’d like to be paying for – travel, dance classes, my retirement. So here are the tricks and tips to focus your repayment and help rid the inbox or mailbox of loan statements as quickly as possible!
Take advantage of any interest reduction deals
When you first begin your federal student loan repayment you’ll usually be offered a few options that are incentivized by interest rate reductions. For instance, if you opt for payments to be automatically debited, then you’ll be eligible for a .25% interest rate reduction. Take it This will directly impact how much you pay in interest. Even a small reduction will have a substantial impact on your overall plan. If the terms are feasible for your repayment plan, then take advantage of these opportunities.
On the flip side, opportunities to refinance your student loans are on the rise. While the possibility of reduced interest rates is appealing, make sure that you’re not entering into an agreement with a variable interest rate that could potentially climb above your current rate. Also to be noted – when you refinance a federal student loan with a private lender you will lose out on the attached protections (forbearance, deferment, alternate repayment plans), so really weigh the ultimate benefits of a lower interest rate versus the potential protections.
Blue Hills Bank, formerly Hyde Park Savings Bank, is a 140 year old mutual savings bank headquartered in Hyde Park, MA. Blue Hills Bank provides consumer and commercial deposit and loan products to Eastern Massachusetts through our branch network and eCommerce channels.
The bank offers commercial real estate and commercial real estate loans in...
Banner Bank, the primary subsidiary of Banner Corporation (NASDAQ: BANR), is a Washington-chartered commercial bank headquartered in Walla Walla, Washington. Founded as the National Building Loan & Trust Association in 1890, it is the oldest savings and loan institution in Washington. Banner Bank has a network of 89 branch offices and seven...
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