When it comes to paying your student loans, if there are ways you can make things easier, you should. While there are definitely things you can do pay them off quicker, one thing you should do — as long as you have the option — is enroll your student loan payments in auto-pay. Here are just a few reasons why:
You can enroll while you're still in school.
Many student loan lenders, especially private ones, offer you the chance to enroll your student loans in auto-pay while you're still in school in order to start paying off the interest. Typically, they only ask for a small amount such as $25 or $50 per loan per month. This can benefit you a lot since, the sooner you start paying off your loans, especially the interest on them, the sooner you can be done with them.
You can qualify for a lower interest rate.
When you enroll in auto-pay, many lenders will give you a lower interest rate as an incentive. While your principal doesn't change, having a lower interest rate can make a big difference in how much you end up paying back over time.
You will never forget to make a payment.
It’s not uncommon for life to get in the way and make you forget to pay your student loans, manually, on time. When you're enrolled in auto-pay, you don't run the risk of missing a payment and potentially hurting your credit score or incurring a late fee.
Here at American Investment Planners LLC, we know that facing student loan debt can be hard to do, but we also know that with the right advice and guidance, it won't be so bad! If you have questions or concerns about your loans, contact us at (516) 932-5130 or email info@americaninvestmentplanners.com to set up an appointment with one of our advisors today.
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