Student loan debt can feel overwhelming. When you start repaying, those monthly bills can be frustrating. Depending on your lifestyle and your financial goals, there are two main ways you can handle your student loan debt (beyond a standard option). Maker smaller monthly payments. Or make two student loan repayment sums in a month and pay off the loan sooner.
Let’s break each down.
Smaller Monthly Student Loan Repayment Amounts
If you don’t mind extending the term of the loan, you can choose a repayment plan that allows you to make smaller monthly payments. This makes the payments more manageable and gives you more flexibility with your monthly budget. However, as we said, you’ll not only extend how long you have the loan but ultimately how much you pay. Interest will still accrue, increasing the amount you have to pay back.
Multiple Monthly Payments
If you just want to pay off your student loan debt as quickly as possible, you will have to look for a way that allows you to make larger monthly payments. One way you could do this is by making bi-monthly student loan payments, in which you make a repayment every two weeks instead of every month. It may feel like paying a lot upfront, but paying off the loan sooner reduces the total amount you’d have to give back by way of interest.
Talk with Your Lender
The first thing you must do is speak with your lender as to whether or not you can make bi-monthly payments. Some lenders may allow this, while others may not. This is the first and most important step to take if you want to try knocking down your student loan debt.
After talking to your lender and before signing the new agreement, you must find out what your payment schedule will be and exactly how much you will have to pay every two weeks. Only go ahead with this schedule if you are sure you can afford to make these additional payments taking into consideration your monthly income.
Use College Raptor to discover personalized college matches, cost estimates, acceptance odds, and potential financial aid for schools around the US—for FREE!