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Rather than waiting for relief, financial experts suggest some steps to take to pay down your loans now.
Also find out what a Trump presidency would mean for student loans.
By lowering your bills, more of what you pay can go directly towards interest and principal over time.
Its always worth examining the most up-to-date income-driven options available to find the best fit, he said.
Using one-time money especially for high-interest balances will help to quickly accomplish significant paydowns.
To create money for this, some students have set upfundraising sales and donationsvia web sites.
If focused correctly, even a few hundred dollars will gradually reduce what you owe.
Public Service Loan Forgiveness
Find out if you qualify for public service loan forgiveness, Shimy said.
This program promises debt wipeout after120 qualifying monthly paymentsfor borrowers, he explained.
This applies to jobs in the government and non-profit sectors if the repayment schedule fits.
Although the system process is thorough, its worth it if youre eligible.
Just be sure to certify your employment yearly and complete the required paperwork to keep on target toward forgiveness.
The secret is to look at every choice to maximize your efforts.
One particularly effective strategy is the debt avalanche method, where borrowers focus on high-interest loans first.
She saved over $8,000 in interest.
Exploring income-driven repayment plans is also vital.
These plans can significantly lower monthly payments, freeing cash flow for targeted debt reduction.
However, lower payments may extend the life of the loan and increase the total interest paid.
They may work with you, especially if youve paid on time.
I have seen interest drop 3% for loyal customers.
It never hurts to ask, and the worst theyll say is no, he said.
He recommended you come prepared with a reasonable request and your payment history.
A single new loan with alower fixed ratemay cut your payment in half, giving you decades to repay.
Ensure any new rate is measurably lower than existing rates.
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