Just started work? Pay off that study loan asap!
Getting that degree is exciting. The thought of entering the
3. Have A Goal & Be Prepared To Make Sacrifices
Aiming to settle your study loan as soon as possible is not enough. Setting a time frame that you’re comfortable with, for example, 2 years, will give you a target to focus on and work towards.
Now that you have your target or goal, be prepared to make some sacrifices for the next few years. For example, don’t rush to buy the latest gadget on the market or the latest handbag.
4. Pay More & Pay Diligently
Pay more than the monthly repayment amount, and if you can, pay more frequently. By doing so, you’ll finish paying sooner and you’ll save on interest too! Do whatever you can to earn some extra income like becoming a freelance photographer, selling cookies or maybe even a part-time job.
Instead of spending that extra cash, channel it towards your loan repayment. The same goes for any bonuses or salary increments you may receive during the course of employment.
Look at it as ‘bonus income’ which you were able to do without before. It’s like pretending you don’t have it!
1. Know The Terms of Your Study Loan
In order to better plan for faster repayment of your study loan, you would need to have a good understanding of the terms of your loan. You should make it a point to read through your loan agreement again, if you don’t already know or if you’re a bit unclear. You’ll need to know the interest rate, the repayment terms, when to start repayment, due dates etc.
2. Repayment Grace Period
With student loans, there’s usually a grace period before you are required to start repayment. This is to give you a chance to find a job. If you manage to secure a job, don’t wait for the grace period to end before you start paying. The earlier you start the better.
On the other hand, if you haven’t been able to secure a job, contact your lender, explain your situation and request an extension.
The most important thing here is DO NOT IGNORE it and hope it’ll go away.
Also, it’s very important to NEVER miss a payment. To ensure you don’t miss your payment, get on online banking / mobile banking and set a standing instruction your loan payment.
5. Track Your Payments
Paying bigger amounts frequently probably means that your repayments tend to differ from one month to another. It’s important to keep track of all your repayments as you’ll want to know where you’re at in terms of your outstanding balance. The best part of keeping track is watching that outstanding balance decline. It’s a fabulous motivator especially when things get a bit tough!
6. Celebrate Milestones
It’s up to you to set milestones. It could be having paid off 25% or 50%, whatever it may be, give yourself a break, and celebrate, do something nice for yourself! Don’t go overboard though. Keep it simple. You don’t want to end up setting yourself back. It doesn’t matter where you are in life, paying off your student loan as quickly as you can
Disclaimer: This content is for informational purposes and
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