Pay Off Student Loans Guide

Paying off your student loans may seem like a distant or even unachievable goal, but it can be done. When you reconsolidate student loans, you can expedite the repayment process considerably. To pay off your student loans as fast as possible, follow the guidelines below.

• Delay repayment. If you return to school, experience financial hardship, or cannot find a full-time job, you can exercise your deferment privileges.
• Reduce monthly payments. When you reconsolidate student loans, you have the option of extending the term of your loan, which usually reduces your monthly payments substantially. Though you will pay more interest expense in the long-run, lowering your monthly payments could help you make ends meet when you're struggling. You can also always raise your payments or shorten the term of the loan later.
• Borrow the right way if you go to graduate school. Grad or professional students are eligible for low-cost Stafford loans, so borrow the smart way if you return to school. If you need additional money, you can borrow up to the full cost of attendance with Grad PLUS loans. These loans usually have very low interest rates.
• Reconsolidate student loans. Even if you don't necessarily get a lower interest rate, you reap a host of other benefits when you reconsolidate student loans. You will have the convenience of one monthly payment and other perks.
• Have someone else pay. There are many organizations out there that pay off student loans in exchange for service. For example, you might join Teach for America or AmeriCorps. Teaching in low-income schools might also qualify you for loan forgiveness. Don't forget that many professions now offer loan forgiveness as a recruiting tool.
• Deduct interest if you can. For those who meet income requirements, you can deduct $2,500 of interest per year on higher education loans. This also applies to the loan you receive when you reconsolidate student loans.

Find more information on how to reconsolidate student loans.