Paying off student loan debt can be difficult, especially when the amount of debt exceeds what a person makes in a year. Fortunately, there are ways to get student debts paid off, even when a person doesn’t make a lot of money.
Start by looking at how much your student loans cost you each month. Ideally, the minimum loan payments will take up no more than ten percent of your net pay. If they exceed twenty-five percent of your income, you may need to consider a few ways to lower your loan payments. For example, it might be possible to receive a short reprieve from the loans. During this period you would have to pay interest on the loan, but the monthly payment would decrease. It may also be possible to refinance the loans in order to lower your monthly payment.
If you are able to comfortably make your loan payments, however, then it makes sense to retire your student loans as quickly as possible. Start by putting a small amount towards an extra payment on the loan with the highest interest rate. When you’re first starting out, make sure that you can afford the extra payment and all of your regular bills.
As your salary increases, you will be able to put more towards paying off your student loans. By continuing to increase the amount you pay towards your student loans, you will be able to get them paid off much faster than you would if you were just making the minimum required payments.