Americans have $1.5 trillion in student loan debt. This isn’t entirely surprising if you consider the cost of tuition has more than doubled since the 1980s.
That leaves a lot of people wondering, how do you begin to tackle this issue? While students in college today are taking home more debt after graduation, they aren’t the only ones facing bills each month.
In fact, more than three million Americans over the age of 60 still have student loans. According to CBS News, many of them are using their Social Security money to pay it back.
Here are a few tips to pay off your debt early from the financial advice website, NerdWallet.com…
Make extra payments – That may sound simple, but it’s important to pay more than just the minimum payments to reduce the amount of interest you’re paying over time.
Choose a shorter payment plan – Many people choose income-based payment plans to save money, but that will cost you in the long run with higher interest. If you can afford it, try to start off with a shorter goal in mind.
Stick to the budget – Setting a monthly goal for your spending is key to making sure you meet the goal.
Other tips include finding a part-time job, selling things you don’t use around your house, and putting all extra money like raises and bonuses towards student loans.