How To Pay Back Student Loans Quickly

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

It's one of the most common questions asked about the topic, and it's certainly one we've considered ourselves in our own personal experiences - what is the quickest way to pay back student loan debt, and how can you get started? 

If you recently graduated from college or will be graduating in the near future, student loans are probably something you're talking about, and today, we'd like to join in on the conversation by offering some tips on how to pay down your debts faster:

Tip #1: Make larger payments.
You'll have a monthly payment that is dependent on how many years you've allocated to paying back your loan, but that doesn't mean you can't pay more. If you can afford it, paying more than the minimum payment will help cut down your principal balance, which will ultimately help lessen the amount of time it takes to pay your debts back in full.

Tip #2: Create a plan.
Even if you have 10 years to pay back your student loans, that doesn't mean you can't create a short term plan for yourself - say three to five years. In fact, having a goal that seems more within reach time wise can actually make sticking to it a lot easier and more motivating. While you may need more than three to five years to pay back your loans in full, at least create a plan for how much you'd like to have paid back within that timeframe and go from there.

Tip #3: Start making payments early.
If you're still in school and can afford it, start making payments before you graduate. If that's too soon, try to start making payments right after graduation rather than wait until your first official due date. Even if you aren't sending much, the earlier you can start making payments, the more comfortable you'll feel once your grace period is over.

Tip #4: Pay more often.
Just because your payment is due once a month doesn't mean you can't send a payment once a week or bi-weekly. If it works with your budget, consider making a payment each time you receive a paycheck - this could even help knock down interest, since you're reducing the amount of time your loans have to accumulate interest in between payments.

Tip #5: Don't get trapped.
You'll probably receive a ton of offers in the mail about consolidating loans and other repayment options, but never let yourself get trapped into committing to something unless it really makes financial sense for you. For example, consolidating your loans may seem like a good plan, but what if the interest rate is actually higher than what you're already paying? Before making any final decisions, make sure you read through the fine print on any paperwork you receive, and speak with a professional financial planner about what strategy is right for you.

Speaking of meeting with a financial planner, the time after you graduate college is the perfect time to do so since you'll likely be ready to start thinking about things such as buying a house, buying a car, and even retirement. 

If it's time for you to map out your financial future, contact American Investment Planners LLC. Our team is made up of qualified financial planning professionals who have all of the tools and resources needed to help you create a plan that will benefit you down the line.

To get started, please call (516) 932-5130 or email info@americaninvestmentplanners.com.