How to Get Out of Student Loan Debt: 5 Unique Nifty Ways to Say See Ya

student by laptop wondering how to get out of student loan debt

How to Get Out of Student Loan Debt With These Simple Strategies

Wondering how to get out of student loan debt? Did you know one-third of American millennials have over $30,000 of student loan debt?gif of Asian women waving goodbye and walking away

Student loan debt can make young people put off buying a home and saving for retirement. But it can be mentally draining as well. While 64% of millennials admit to stressing about their finances, half of them believe that this stress has a negative impact on their health.

However, there are several simple approaches you can take to get out of student loan debt.

Let’s look at how you can alleviate your student loan debt woes.

Make Bi-Weekly Payments

If you want to reduce your repayment time and save on interest, consider bi-weekly payments. This approach doesn’t involve paying twice as much per month. Rather, you slice your monthly payment in half and pay that amount every two weeks.

Using this strategy, you end up making one more payment than you normally would per year. Plus, if receive your paycheck bi-weekly, you won’t feel the sting as much.

Just focus on making both payments before your next due date. Otherwise, you’ll pay less than you actually owe every month.

Look into Student Loan Forgiveness Programs and Options

If you have trouble affording your payments, check to see if you qualify for any of the following income-driven repayment plans:

  • Pay As You Earn
  • Revised Pay As You Earn
  • Income Contingent Repayment
  • Income-Based Repayment

Teachers may be eligible for teacher loan forgiveness. There are also many state and national loan repayment assistance programs for nurses, doctors, and lawyers.student browsing laptop

Refinance Your Loan

Student loan refinancing is an option you can explore if you have a high-interest loan. If you make a steady living and have a strong credit score, you may have a chance to reduce your interest rate.

But keep in mind that there are downsides to refinancing a federal student loan through a private lender. For starters, you can no longer take advantage of federal repayment options. You also forfeit your eligibility for federal loan forgiveness programs.

Always compare loan terms before making a decision. If you refinance, choose a lender that doesn’t charge application or origination fees.

Use the Debt Avalanche Strategy

If you have multiple student loans, the debt avalanche strategy can prove to be useful.

With this method, you focus on paying off the student loan with the highest interest rate first. You only pay the minimum for the rest of your student loans.

It allows you to save big on interest while paying your loans off much faster.

student rolling up snowball

Try the Debt Snowball Strategy

If you don’t want to wait too long to see your balances shrink, the snowball strategy might be a better option to get out of student loan debt.

This method involves paying the bare minimum for everything but the student loan with the smallest balance. You put as much money towards your smallest loan as you possibly can.

Unlike the debt avalanche strategy, this one provides immediate results. As a result, it motivates you to continue paying extra.

Final Thoughts on How to Get out of Student Loan Debt

While being in debt can be extremely stressful, you can use it to motivate yourself to work harder. Online side gigs like tutoring, or editing can help you earn some supplemental income.

Are you struggling to pay off your student loans? Have you used any of the strategies mentioned above to get out of student loan debt? Let us know about your experiences down below.

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6 Comments

  1. Hello Patrick,

    Great tips on ways to tackle student loans and very effective.

    Other ways I can provide would be on the expenses side such as living below your means; only purchase needed items, use coupons, rebates, shop at discount stores so that the money saved can go towards the student loan thus accelerating the payment.

    Due to the high amount of student loans, it is wise to live frugally and on a tight budget. I believe one can even live below their means and reward themselves once in a while. 

    After the student debt is payed off, the saved money can then go towards emergency funds as well as retirement.

    Sam

    • Hi Sam,

      All great additional suggestions on how to get out of student loan debt.

      Really like your thinking on the future after the student loan debt is paid off.  Saving and investing is the key to long term stability in retirement.

      Thanks for sharing your ideas and commenting on the post.

      All the best,

      Patrick

      Credit Squared

  2. Hello Patrick, 

    Very innovative tips on how to get out of the student debt. 

    Other tips that comes to my mind are to sell your course class notes, solved exercises of a textbook and tutoring other students. 

    I am not an advocate of living on a tight budget. I at least like to keep my current standard of living. Just try not to live beyond your means. When you do you will get used to living that way which only makes things more difficult. 

    The experience of paying your student debt is an experience which will teach you some great money management skills. 

    Sam

    • Hi Sam – Thanks for the additional insights on how to get out of student loan debt.  Some of my readers have offered great additional suggestions like yours, so this post will be seeing an update in the near future.

      I get your point about not living on a tight budget and just maintaining your current standard of living. However, just a little bit of belt tightening can go a long way and get you on a path to pay your student loans down faster.

      I do agree with you that paying off a student debt is a great accomplishment and teaches one how to manage their money.

      Thanks,

      Patrick

      https://www.creditsquared.com

  3. Hello Patrick,

    I work for a Big East University, and I’ve seen a lot of students get caught up in the student debt abyss of no return.

    The amount of debt incurred from educating themselves is staggering. It is sad to see these students graduating with enormous debt with no real future job prospects related to their chosen field of study.

    I’m going to share your website with the university newspaper in the hope that sharing your information will help increase awareness about how to get out of student loan debt.

    Kevin

    • Hey Kevin,

      Looks like you’re right in the middle of things working for a university. So you know first hand how much student loan debt has gotten out of control.

      Over one third of millennials have more than $30,000 in student loan debt. That much debt will hinder them from buying a home or a new car.  It can even delay one of life’s most important money matters.  Saving for retirement.

      If a person is serious about getting out of student loan debt and has the means, I recommend utilizing the debt avalanche approach outlined in the post.

      Focus paying off the student loan with the highest interest first. It will help them save big on interest while paying off their loans much faster.  One should also consider refinancing their student loan as a way to lower their monthly payments.

      Thanks for offering to share my website with the university newspaper.  I’m sure they will find this content helpful in developing student loan debt stories they can offer to their readers.

      Patrick,

      https://www.Creditsquared.com 

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