- Bank Loan
- Bankruptcy
- Budget
- Children's Future
- Consumer Proposal
- Credit Cards
- Credit Counselor
- Credit Report
- Credit Score
- Debt
- Debt Collectors
- Debt Consolidation
- Early Retirement
- Financial Freedom
- Financial Literacy
- Financial Problems
- Financing For Renovation
- Gambling Debt
- Holiday Debt
- Income Tax Debt
- Investment
- Money
- Money Management
- Money Saving Tips
- online fraud
- Online Scams
- Owing A Car
- Pawnshop loans
- Payday Loans
- Refinance
- Running Out Of Money
- Save Big Money
- Saving Tips
- Secure Retirement
- student loan
- Tax
- Uncategorized
- Wage Garnishment
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- November 2015
- October 2015
- September 2015
- August 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
Four Great Tips to Pay Off Your Students Loans
Being saddled with student loans can make life difficult. When you’re out of college or university, you’ll likely already have a heap of regular bills to pay, and the monthly hit from a student loan payment on top of those isn’t a welcome addition. Your personal credit rating will also be tied to paying off your debts on time.
So to ease the challenge of post-secondary loans, it’s best to pay them off as soon as possible. These simple tips can be a big help in achieving that goal.
Budget
This is a simple one to start with, but it’s something a lot of people forget to do. Sit down and draw up a budget with your monthly income and monthly loan payment requirement, and make sure you set aside funds to make the minimum payment. If you have more free money at month’s end, consider putting it towards you debt.
Reduce the debt through lump sum payments
In other words, put as much money as you can spare into paying down your student debt, when that money becomes available. If you’re still in school, you can get an early start by putting money towards the loan before you graduate. One good reason to do this (if possible) is that the money will pay down the loan principal, which will also reduce the total amount of interest you’ll pay going forward. Any lumpsum payments after graduation will first be applied to any interest that accumulated since your last payment, with the rest going to the principal.
Hike the monthly payment amount
Every month, there will be a minimum pre-set amount to pay on the loan. This figure covers interest, and some of the principal. However, if you pay more, you’ll lower the total amount of interest to be paid over the course of the repayment period. For example, with a $25,000 student loan at a 5.5 percent interest rate, the interest alone will reach roughly $7,500 over the loan duration. But if you add another $100 to your monthly minimum payment rate, you can reduce the interest toll by about $2,600.
Tap into federal student loan tax credits
The interest paid on a student loan is eligible for a federal tax credit. This means that the taxman will give payments made on both federal and provincial loans a 15 percent credit. Remember to apply for this credit before you file your taxes.
http://www.canlearn.ca/eng/loans_grants/repayment/manage.shtml
Hopefully these tips will get you on the track to speedy student loan repayment.