How to Pay Off and Get Rid of Student Loan Debt

Student loan debt can eat up a large portion of your income. Many students do not consider the financial repercussions of taking out student loans while they are in college and are often surprised by the amount they need to pay after graduation. Student loan debt will not be forgiven or reduced during bankruptcy so it is important to make a plan to pay off your debt quickly. Facing student loan debt head on is the quickest way to get rid of it.

Instructions

1

Plan out a monthly budget, which lists all of your expenses and your current income. Reduce your current expenses to free up extra money to apply to your student loans. Cut spending by limiting eating out, entertainment costs and gym memberships. The more you cut back the sooner you will be able to pay off the loans.

2

Take a second job as a temporary measure to earn extra money to pay off your student loans. Look for a better paying job if you are having a difficult time making your student loan payments. Working as a freelancer after hours is another way to increase your income and it often pays better than traditional second jobs.

3

Sell items you no longer need or use to raise money to get rid of your student loans. Large one-time payments will reduce the amount of interest you pay over the life of the loan and speed up the process of paying down your balance.

4

Apply for a loan forgiveness program, if you work in the public sector. The College Cost Reduction and Service Act allows other people working in public sector jobs, such as and social work and law enforcement, to qualify for loan forgiveness after 10 years of continuous employment. Loan forgiveness programs are only available for federal student loans, and will not work for private student loans.