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Do you wonder how people get out of student loan debt and become debt free? This post will show 8 simple steps you can follow to get out of student loan debt and not get you down. Take the overwhelming number and crush it!
My personal story:
I started paying off my student loans while I was still in school because I took a financial class called Financial Peace University through my sorority. The class was only offered to the greek students for free at our university!
Paid the unsubsidized loans off while I was in school because they accrue interest right away. The subsidized loans do not accrue interest while in school, added bonus, I waited to pay those off. I had a total of $32,000!
How did I do it?
I made living sacrifices.
At the time, it did not really feel like sacrifices since I never lived by myself. I would consistently live with others to reduce my housing cost. I lived with my sister for free, lived with my friend for $300 (I had the entire basement to myself and the garage) , and lived with a random person for around $350 in the middle of Raleigh, NC. As I was living a low cost, I was able to clear my debt fast.
It also helped knowing the difference between these two words: subsidized versus unsubsidized. Which I mentioned already above.
This website, studentaid.ed.gov should tell you how much money you have taken out from the government. Many companies are compiled under here and it will help you understand the number for your debt free journey. You need to know by heart how much debt you have. It will help you conquer it!
Most people recommend smallest to largest. It give you the momentum to crush your loans. As long as you have a plan to pay them off each month you are golden!
We did a bunch of different ways. I crushed the smallest, but then when I had tax returns or other surprising lump sum cash. I would crush a loan with a high interest rate.
Automate the process. It is the easiest way to crush your goal. You want to only pay the minimum payment automatically online though and we will tell you a little secret. The government doesn’t care if you pay more and they do not want you really too because they are making money off of you!
They also do not tell you…if you pay more through auto payment online that they equally distribute the payment to all your loans! Which makes it longer for you to pay off!
Yes, I said it. Call the loan company each month to add your $400 extra payment. I tell you this because that way you can specifically tell them what “token” you want to pay off. Otherwise, it will take you longer to pay off your loans. We want you to pay them off fast! Fast is the key!
Be specific when you call the lender and tell them, “I would like to place $400 on the principal of token Nelnet it has an interest rate of 3.5% and it currently at $5,603.”
You are in a journey. Remember to feel good that you are slicing each loan. We love that student loans are little pieces because it is just getting you ready to knock out your next loan you have to become totally debt free.
When you make a goal to clear out one loan. You need to celebrate! Celebrate that milestone it will make you feel good. It will show you who you are and what you are able to conquer! You are a BEAST! Congratulations!
And those are some amazing tips to get you out of student loan debt fast! They are simple and to the point. Think about that sacrifice are you going to make to delete your student loans fast?
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