Education in India can be costly particularly if you are studying professional courses like engineering, medicine, or business, especially if you are going to a private university. In that case, even after having financial support from your parents, you might need to take a student loan that becomes difficult to pay off. Here we have gathered a number of ways to pay off college loans.
- Having a part-time job
Starting your career as soon as you graduate is the most effective way. But starting a part-time job while studying is always a great option to earn some extra money to buy off your college loans. However, in a country like India that might be extremely difficult. There are no substantial part-time jobs available for students. But, as of now, you can go for remote jobs that will yield you at least something every month and a portion of your expenses can be met.
- Understand your student loan properly
You must have complete knowledge of what you owe to whom, the rates of interest, and the minimum monthly payment of each loan. In this way, you can use the terms and conditions for your own benefit. For instance, you can pay more than the minimum amount to pay off the debt as quickly as possible.
Pay in advance before the end of the grace period. By starting the repayment process early, you are paying off a portion of the loan. Also, make biweekly payments. That way you make an extra payment and end up paying for lesser interest.
Keep in mind that paying on time will help you to maintain a good credit score that can help you with various benefits later on.
- Go through your repayment plan
In paying off student loans, there are various repayment options. So, if you want to pay off your debts quickly, go for one with a short term of repayment. However, in such cases, the amount payable each month will be greater, so have a look at your credit before taking any such decision. Moreover, you should certainly use any amount that comes unexpectedly towards the payment of your loans. It might be a tax refund, a bonus, or a sudden inheritance.
- Stick to a financial plan
Budgeting is extremely crucial if you want to reduce expenses. Have a financial goal, track your expenses, and cut down on those that are not absolutely necessary. Set daily limits which will keep you from splurging especially if you stay alone. This will not only help you buy off your loan but also if you have a part-time job, you might not need to take a substantial loan at all.
- Look for funding
The easiest way is obviously scholarships from your university. However, if you have a marketable skill, you might seek financial assistance from a potential employer.
Also, since you’re paying off a student loan, you will be exempted from certain taxes, keep a track of those. Moreover, if you go for automatic payments, you can get discounts on the rates of interest.
So, buying off college loans is extremely important, particularly for maintaining your credit history. Many people have to look for loans as most do not have huge financial support from their families. However, this should not be an unnecessary financial burden for the better of your life. The loan options and various tricks to pay less interest are there to help you out in that case. But the chief idea is to spend less, budget properly, and get hold of internships or part-time jobs and scholarships, if possible.