The cost of good educational degrees from prestigious institutions have been ever-increasing and is at an all-time high, making education loans a go-to option for many. Getting that student loan is easy but paying it off can become cumbersome if not planned strategically.
Paying education loans is not always easy and can become a huge concern for many, but it’s not impossible if armed with a well-thought-out plan.
There is a lot to know about education loans but here are a few ways you can pay off your loan faster smartly:
1. Plan a Repayment Strategy:
Creating and sticking to a robust budgeting plan around your finances can help relieve the stress around your repayment plans. Ensuring awareness of how much you will need to pay and for how long upon completing the degree can also help in creating better payment strategies.
2. Make Extra Payments:
The most sought-after way to pay off your student loan faster is to pay more than what your minimum due is each month or with lump-sum amounts. The more you can pay towards your loan, the more you can chip away at the interest you owe the bank.
3. Consider Getting Part-Time Jobs:
Getting part-time employment or freelance gigs while getting that degree can help students reduce the burden of paying back the loan in the long run. Saving money from these part-time jobs can help pool in money to make it easier for the repayment process.
4. Enable Auto-Pay:
Automating your payments not only ensures that you don’t default on your regular instalments but also helps you get a reduced interest rate from your lender in some cases. With a predetermined amount, you can choose how much and how often your payments are made towards your loan, giving you the flexibility to plan ahead without the hassle of manual intervention.
5. Consider a Balance Transfer:
With the constant fluctuation of interest rates, you can always consider a balance transfer option to a bank that offers a lower interest rate. By doing so, you can significantly reduce your outgoing EMIs and reduce the interest owed to the bank.
6. Enquire About Student Loan Assistance Schemes from Your Employer:
Some employers have schemes to assist new employees with their education loan repayments. Several jobs offer to pay an aggregate amount towards student loans in exchange for working in a service capacity, as a part of your compensation package.
Like any other loan, education loans too require a fair amount of planning and checks at regular intervals. But if done in the right way and with some extra efforts, you can be on track to clearing off your dues faster than you think.
Thinking of getting an Education Loan? Check your eligibility with us now.