The Top 3 Ways to Eliminate Student Loan Debt

The ability to eliminate student loan debt is at the forefront of a lot of graduates minds. There are ways to accomplish this. Follow these simple steps and you will have a good way to pay the loans off without much of a hassle.

Step One - Payment Schedules

The first step to eliminate student loan debt is to have a realistic payment schedule. Understand the terms of your loan, and make a schedule for payments that fits within your means. Try to stay with a standard schedule instead of deferring the loan or taking forbearance options. These may be enticing since they will lower your monthly payments, it will eventually cost you more and prolong the amount of time you will be paying on your loans. Only use these options if it becomes absolutely necessary.

Step Two - On Time Payments

To eliminate student loan debt you must make your payments on time monthly. There is no bending this. Skipping a payment or forgetting to make it on time can and will cause your interest rate to increase. Often times the increase is great. This will cost you a lot more money in the long run. Once the interest rate increases, you will continue to pay that increased rate until you are able to negotiate a lower rate. This can cost you thousands of dollars over the term of the loan. Most lenders will offer a direct payment, or direct debit program. Enroll in this if it's available. The money will just automatically be withdrawn from your checking account each month around the same time. You will never have to worry about a payment posting late, and never have to worry about forgetting a payment all together.

Step Three - Know When To Negotiate

If you've been making your payments on time without fail, you can help eliminate student loan debt by understanding the interest rates. Interest rates are never set in stone. Congress will determine the rate cap each year at the beginning of July. Once you know what the new cap is, look at your loans and the interest associated with them. It never hurts to call the lender and see if you can negotiate a new rate. If you can lower the rate, even by half a percentage point, this will translate in to savings that will be noticeable over the life of the loan. If the lender tells you they are unable to offer a lower rate, find out why. If you've made a late payment or two in the past, they may be able to negotiate the rate at a later time. Follow their directions, and you should be able to shave valuable money off your loan.

Justin R Stewart

Learn more ways to eliminate student loan debt once and for all. Expert advice is available for anyone looking to consolidate student loans.