Chris O'Shea
As recent college grads prepare to start paying off student loan debts, they and their parents must understand the best way to deal with them. Here are some tips for reducing that student loan debt.
Consider Refinancing
If you can secure a lower student loan rate than what you originally had, consider refinancing the loan. You can save plenty with a lower rate.
Try a Card
Some credit card lenders offer cash back and benefits if you use them for loan payments. For example, Sallie Mae’s Accelerate credit card pays 1.25 percent cash back on qualified purchases and a 25 percent bonus cash back if you use it on student loan debt. Just be sure to read the fine print before signing up for any credit card. You want the overall terms to fit your financial lifestyle.
Go Big
If you can work it into your budget, try to make additional loan payments. Maybe you get a big tax refund or another big windfall. Whenever you receive a lump sum of cash, use it to make an extra payment on your loan. By doing so, you’ll pay off your loans faster and therefore reduce the total amount of interest you’ll pay.
Do One Thing: Explore repayment options for your student loan to make sure you are setting yourself up for success.
