Student Loan Pay-Down

For most people in college, taking on student loan debt is all but guaranteed. Unfortunately, paying off that debt isn't done nearly as easy as taking it on is, especially in today's economy. Even when you consolidate your debt at a rate below the federal loan consolidation rate, it can be a difficult process. Here we've gathered some of the best tips and tactics for paying down student loan debt quickly:

• As with just about any other type of loan or credit card, you should always try to pay more than just the minimum amount on your debt each month. By paying off more than just the minimum, you'll have your student loan debt paid off faster and will have paid less from interest charges.
• Like most other college students, for the past several years, you've most likely been living a fairly frugal life style. Even if you have a great new job and a high salary, you should try your best to maintain that student life style for a while. Avoid big purchases for a couple months and put your extra income toward putting a dent in your student loan debt. You'll thank yourself when your debt is paid off months in advance.
• If you've managed to purchase a home and make payments for a couple years, you may be able to take out a home equity line of credit. You can use this line of credit to pay down your student loan debt, as it typically has a fairly low interest rate. The interest you pay on a home equity line of credit is also tax deductible in most cases.
• Are you finding it impossible to find a career in today's economy? If you're struggling to even make minimum payments on your student loans, you can request a deferment, which allows you to postpone payment. Depending on the type of student loans you've taken out, you may even be able to avoid accruing interest during deferment. Once you're financially back on track, you can get back to paying the loans down.
• Finally, find out if you're eligible for any loan forgiveness programs. Loan forgiveness basically eliminates part or all of your student loan debt. Typically, loan forgiveness is offered for military personnel, teachers, and members of the Peace Corps. Recently, some employers have even begun to offer it as a benefit.

Having trouble understanding the content and some of the terms talked about? Look through some of the terms we have given in our glossary for a better understanding.