The idea is that if something terrible and unexpected happens – your car breaks down, you need to go to the doctor, etc.
– you’ll have the funds set aside to pay for it without needing to pull from other areas of your budget.
Getting rid of your student loan debt also gives you a lot of freedom — the freedom to take a lower-paying job that you care about more, the freedom to travel, even the freedom to take on other “good” debts — like a mortgage for your first house.
It’s also important to note that defaulting on your student loan can have serious consequences; in fact, not repaying student loan debt can be worse than not repaying other types of debt.
But other than that, it can be really helpful to pay off your student loans as soon as possible. Follow the suggestions below to help speed up your student loan repayment.
Paying your loans down before you graduate will certainly help you pay them off faster.
Paying back your student loans can be intimidating. It might take time, yes, and probably determination. But making that plan is just one of the things this article will help you do — and it will also give you the tools to move from having thousands of dollars of student debt to being debt-free.
I know — when I was graduating from college and trying to find work and a place to live in an entirely new city, the thought of also having loans to pay back made me terrified. You might even be able to do it faster than you expected. Let’s say you have a ,000 loan with a 4.5% interest rate that you pay off over 20 years — you’ll pay ,550 in interest.
Any payments you can make while in school help lessen interest capitalization and can save you money.
Check with your loan servicer to be sure, but in most cases there are no prepayment penalties.