Student loans can be a big responsibility on the shoulders of the students pursuing higher education. To keep the students away from the pressure of repaying the loan, the government of India has launched holiday period which allows the student repay the loan either one year after completing the education or 6 months after getting the job. Irrespective of the many benefits offered by the education loans, students will be in search of the ways to repay the loan at the earliest and take the responsibility off their shoulders. If you are one among them, continue to read few effective ways to repay the study loan at the earliest.
Pay Your Student Loan Faster
Pay it quickly
When you way to take out the burden of study loans off your shoulders, plan to repay more to cut the principal quickly. If you have a tenure of 10 years which demands the payment of 20,000 monthly, plan to pay off double the EMI to get the loan off your shoulders. As you might not have many responsibilities to handle at early stages of your career, it will not turn into a tough game. You can also try to make bi-weekly payments and close the loan faster.
Have a loan tenure loan
Prepaying the study loan will not have any penalty. In fact, this is the first responsibility at your disposal when you start earning. You might have chosen to repay the loan over the tenure of 15 years while applying the because you are not aware of the income that you are going to generate with the degree. Doesn’t it sound silly to extend the loan tenure till 15 years when are you are being paid well? You should plan about when you at a comfort to end loan tenure and plan to repay the loan accordingly by cutting down your spending.
Many private lenders today are offering refinancing solution to education loans. If you get an opportunity from the lender offering a low rate of interest and flexible terms, take the advantage of the opportunity lower the cost of student debt. When the loan amount is low, interest paid towards the same will be low too. This refinancing option will facilitate you to choose the loan tenure as well. Keep the tenure short and make large payments to close the loan faster.
Put your tax refund to use
There are many types of loans like education loans, home loans that are eligible for tax benefit in India. When you receive a tax refund on the loans, avoid spending the amount on lavish purchases, instead use them to repay student debt to close it faster. You can also take some paid assignments to earn some extra income and repay the loan faster.