College graduation is near, which means it will be time for millions of students to start paying back those student loans. Student loans are one of the biggest reason Americans have debt. Reducing or eliminating student loan debt can be trying, but here eight ways to get that balance under control.
Pay a little extra
Pay more and reduce your principal, which means you will reduce your balance faster and save yourself some money.
Ask for Employer Assistance
Government employees and educators are the two most common career paths that offer tuition reimbursement, but there are many private companies that are willing to offer help.
Sign Up for Auto Pay
Some loan companies reduce interest when you sign up for autopay.
Pick a Different Repayment Plan
There are many repayment plans available to borrowers based on your income that can be used to pay back loans with the most common being an income-based repayment (IBR).
Consolidate Your Loans
Most student loans (federal) are eligible for consolidation. This is when all of your student loans are combined into one loan. Consolidation will lower your monthly payments and possibly change your repayment period.
Apply for Deferment or Forbearance
Student loan deferments and forbearance let you temporarily pause or reduce your monthly payments. There are a number of reasons to defer payments, which also stops interest from accruing on certain types of loans during the deferment period. Keep in mind, loans in forbearance always continue to accrue interest.
Apply for Public Service Loan Forgiveness.
Government employees and some non-profit organizations qualify you to be eligible for public service loan forgiveness depending on the type of loan you have.