Here’s what you need to know about paying off your student loans.

You’re not alone. Student loan debt currently exceeds $1 trillion, according to the Federal Reserve Bank of New York, and while those who graduate college with significant debts may have a harder time finding a job, it doesn’t mean they should abandon their dreams. In fact, many who manage to pay off their loans end up doing better than others who didn’t. Here are some tips to make sure you’re making smart choices with your cash.

Don’t let interest eat away at your paycheck. If you don’t pay your loans on time, your interest rate could increase, and you’ll have even less money to spend on things that actually benefit you. Instead of letting the money sit in a savings account, try spending a portion of your paycheck toward your loans. Just remember: more often than not, the money you save from missing payments goes back into them later, so start small and work your way up to larger amounts over time.

Avoid going into too much debt. While it might seem tempting to borrow money to finance a home renovation project or the down payment on your first car, if you fail to pay off your loans by the due date, you face penalties and additional charges. And if you end up defaulting on your payments entirely, you could lose access to credit altogether.

Pay yourself first. When you get paid, set aside a certain amount of your income to go toward repaying your loans. That means putting your money where your mouth is, since you’d rather put your money out of sight than allow someone else to use it to fund your monthly expenses.

Make smart decisions. Once you’ve considered all of these options, take care of your educational obligations before anything else, including buying groceries, utilities, and entertainment. By setting yourself up for financial success after graduation, you’ll find it easier to repay your loans once you’re no longer under pressure to keep up with your rent or mortgage.

Build a budget. If you haven’t already done so, now is the time to create a financial plan that considers both short-term and long-term goals. Knowing how much you can afford to spend each month will help you stay on track without getting into trouble. Start by creating a spreadsheet that includes categories like housing, transportation, food, insurance, and other essentials. Then add another column for savings, which could include contributions to retirement accounts or a rainy day fund. Finally, consider adding columns for fun activities like dining out or shopping that you enjoy and want to do regularly. Set realistic goals for yourself that align with your current financial situation.

Consider taking advantage of debt consolidation programs. Many people have difficulty staying motivated to repay their loans because of the costs associated with keeping up with payments add up quickly. But consolidating your loans into a single payment might make it easier to stick to your repayment schedule. This isn’t always the case, though, since debt consolidation services may charge fees, require you to give up your right to pursue legal action against lenders, and limit your access to credit. Be sure to shop around and compare interest rates before signing up with any company.

Pay off your loans in the shortest period of time possible. Your best bet for minimizing the total number of years it takes to pay back your loans is to make biweekly (or even weekly) payments. Doing so will reduce your interest rate, which means you’ll eventually save money and decrease the length of time it takes to reach your goal.

Work with professionals. If you’re having trouble paying down your loans, consider talking with a professional. Certified public accountants, certified financial planners, and attorneys specializing in bankruptcy law and consumer protection can offer advice and guidance regarding your options. Don’t hesitate to ask for help if you really need it.

Take advantage of government assistance programs. There are several different types of federal aid programs designed to help borrowers meet their financial obligations. These include free tax preparation services; low-income heating assistance; discounts on student loans; and grants that cover tuition, books, and living expenses. Explore these offerings to see if any apply to your situation.

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Here’s what you need to know about paying off your student loans.

By now, you’ve probably heard of the staggering amount of student debt America is currently facing. According to the Federal Reserve Bank of New York, in 2017, the average balance owed was $37,172. That number ballooned to $43,322 in 2018. And while many young Americans have been struggling to pay back their student loans since 2010, the problem has gotten worse over time. In 2016, total outstanding loan balances were nearly 72 percent of total U.S. household credit card debt.

This means that if your monthly payment is around $300 and you work until you’re 65 years old, you could take home as little as $25,000 at retirement—or less than half of what you’d make after taxes and Social Security. But don’t fret! You can actually get out of debt faster than you thought possible. Here’s how.

Paying Down Your Student Loans

In order to pay down your student loan debt, you first need to understand where your money goes. Most people spend anywhere from 20% to 50% of their income just on basic necessities, including rent, mortgage payments, groceries, utilities, insurance, etc. If you’re not careful, these expenses can easily add up and leave little to no room for savings. So before making any major purchases (like buying your dream car), ask yourself: “Do I really need this?”

It might seem silly, but if you do decide to splurge, try to set aside some extra cash each month for savings purposes. Even small amounts saved consistently will help you build up a nest egg sooner rather than later. Plus, you’ll feel great knowing that you put away even a portion of your paycheck for future financial stability.

If you already have a good chunk of money saved up, then start applying those funds toward your student loan repayment. While you may want to save for big-ticket items like a house or a car, think long-term and consider using your extra cash to pay off your student loans instead. This way, you won’t have to worry about interest rates changing or having to wait months or years to pay off the principal.

Find Out How Much You Owe.

Next, figure out exactly how much you owe. To do this, you’ll need to dig up a copy of your last statement from your bank or credit union. Remember to check both your checking account and your credit cards. Once you determine the exact amount due, divide it by 12 to get your monthly payment.

Calculate Your Repayment Ease

Now it’s time to crunch the numbers to see how long it would take for you to pay off your student loan debt. Multiply the number of months left until retirement by your current annual salary. Then multiply that by the original amount you borrowed. Finally, subtract the result from the amount you currently owe.

For example, let’s say you earn $50,000 per year and you expect to retire at age 65. If you borrow $15,000 in student loans, the original amount you borrowed equals $30,000. Your monthly payment equals $300. However, if you end up owing $40,000 by the time you retire, your monthly payment ends up being only $200. And since it only took 10 years to pay off the original $30,000, you would have paid off nearly 80% of your loan in 10 years.

But before you start celebrating, keep in mind that the best time to pay down your debt is while you still have steady employment. Since many employers don’t offer retirement plans, you should plan ahead and save enough money to cover your retirement.

Here’s what you need to know about paying off your student loans.

How much do you owe? Are you worried about how long it will take to pay off your debt?

Do you think that going to college was a good idea or not?

Are you trying to find ways to reduce your monthly payments?

These are just some of the questions that came up when we asked our viewers what they wanted us to answer about their debt.

Our first question was about how much each person owed on their federal student loans, if any.

We then compared those numbers to how many years it would take them to pay off those debts on average.

And we even looked at what percentage of their income went toward these student loans!

Check out this video to learn more about how much money you’ll need to repay and how many years it may take you to get out of debt.

Want more tips on paying back your student loans? Find out more details about APRs on Federal Student Loans here: gov.gov/borrowerguide/interest-rate-and-applicable-rates

But the best way to understand your options is to talk directly with a graduate from your school. We’re ready to help today. AskFunder

Here’s what you need to know about paying off your student loans.

How much do you owe?

You’ve probably heard people say that they have a “student loan debt problem.” But how much does that really mean? Many Americans rely on student loans to fund their education—and while some might assume that students borrow money to pay for school, the reality is that many people take out loans to help pay for things like rent, food, and transportation. In fact, according to the U.S. Department of Education, total outstanding student loan amounts topped $1 trillion in 2018. That means if you’re struggling to pay back those loans, you’re not alone.

What kind of loan do you have?

If you’ve taken out federal student loans, there are two types—subsidized and unsubsidized. Subsidized loans are considered affordable because they don’t accrue interest until borrowers either start repaying them or reach certain milestones, like graduation or six months after leaving college. Unsubsidized loans, on the other hand, have interest rates ranging between 4% and 8%.Even though these loans may seem expensive compared to private-sector loans, they provide flexibility to borrowers who want to attend different schools without worrying about repayment concerns. Additionally, unlike subsidized loans, these loans are easier to discharge in bankruptcy cases.

Can you get rid of them early?

Yes, under special circumstances, you can apply to have your federal student loans discharged before the end of your grace period (usually 10 years), provided you meet specific criteria set by Congress. However, getting a loan discharge doesn’t guarantee you’ll actually erase the amount owed. The government sets limits on loan discharges based on your income, assets, and other factors.

Is there anything else I should consider?

While federal student loans aren’t dischargeable in bankruptcy, they can still be released in Chapter 13 bankruptcy cases. If you file for bankruptcy and make payments toward your loans, you may eventually be able to eliminate those balances completely. And even if you can’t get your loans erased, you might be able to refinance your existing loans at lower terms. After filing for bankruptcy, lenders will likely review your case individually and determine whether it’s feasible to work something out.

Here’s what you need to know about paying off your student loans.

Students today have many options in terms of pursuing higher studies. There’s no longer any excuse for not getting college credit!

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