Here’s How to Pay Off Student Loans 5 Years Faster Without Getting a Second Job
Student loans. Ugh. Every month, you make your payments — just one of about 5,000 more to go. It feels like you’ll be paying them off for the rest of your life.
Wouldn’t you like to be free of them sooner? Like, five years sooner? Of course you would, but what else can you do, short of getting a second job?
Here’s the thing: You’ve probably had the same student loan company since you had acne and were eating ramen in the dorm room.
But chances are, that company is overcharging you. And something as simple as switching loan companies could get you a better deal, helping you shave hundreds of dollars off your monthly payments — and pay them off years sooner.
And no, it’s not some huge project. You can do this in about seven minutes.
The best way to find a better deal is to use Credible. It’s sort of like Kayak — but for student loans. It compares your options from up to ten companies to help you find a loan that will give you the lowest monthly payment and the fastest payoff time.
How She Shaved $350/Month From Her Student Loan Payments
Switching loan companies worked for Sarah Ann Stanley, a 32-year-old product manager in Minnesota. She was forking over $500 a month in student loan payments, plus close to 8% interest on multiple loans.
She decided to refinance — or replace her multiple loans with a single new one from a new company. Her interest rate dropped to 6.22%.
It’s less than a 2% difference, but it shaved $350 a month from her monthly bills. Oh, and now she only had to manage one bill — not several.
“I didn’t want to be 45 and still paying student loans,” Stanley says. “Now that won’t happen.”
After a second refinance, Stanley is now able to pay off her loans five years ahead of schedule and save even more on interest.
“Because so much of our money goes to this, it’s worth pushing the envelope and fighting for yourself and finding a better deal,” she says.
If you’re even a little curious, it only takes two minutes to see if Credible can help you pay off your student loans faster.