Paying back your student loans can seem daunting, but there are plenty of methods you can employ to pay them off faster and get out of debt.
Apply for Deferment or Forbearance If You’re Experiencing a Hardship
You can temporarily delay payment on your federal student loans. See if you’re eligible for deferment or forbearance. You will be responsible for paying the interest that accrues during your forebearance, but you may be exempt from paying this interest on certain types of subsidized loans.
Be Weary of Interest Capitalization
Capitalization is when unpaid interest on a loan is added to the principal balance. This can increase the time in which it takes your loan to be paid off, raise your monthly payment, or increase the number of payments. Make sure to keep up on your interest so that it doesn’t get added to the principal balance.
Make Extra Payments
Paying more than your required monthly payment can help you get out of debt faster. Whether you make an additional payment when you have some extra cash flow, or you make a larger payment on the due date, any extra payment can go a long way.
Take note if you make an extra payment. Student loan servicers may automatically credit your additional payment to next month’s bill. Be sure to request that the extra amount is to be applied to your current balance.
Did you know that United Financial offers student loans at low rates? Learn more by clicking here or call one of our representatives at (989) 777-3620.