With the rise of college tuition rates, it can often seem impossible to pay off student loans quickly. However, there are ways to pay off your loans faster. Consider these three methods and see if any work for you!
Coverdell Education Savings Account
There are many ways that you can help yourself get out of debt and start saving up for your future. One way is to open a Coverdell Education Savings Account which allows you to save up to $2,000 a year tax free. The money can be used for anything including a down payment on your first home or paying off student loans.
The Coverdell Education Savings Account is a government-sponsored program that allows persons to save up to $2,000 per year in order to pay for college expenses. The account can be used as long as the child is under 18 years of age.
Financial Aid
If you are trying to pay off your loans, it can be a little overwhelming because there are so many different options. One of the options that is often overlooked is financial aid. Financial aid is awarded to students based on their needs and strengths. You may need assistance with paying for books or other college expenses, which financial aid covers. To qualify for this assistance, you have to have a good chance of getting a scholarship or other type of financial assistance. The grants typically come with a limit as well such as any amount under $2,500 per semester.
It is possible to reduce the amount of time it takes to pay off student loans by applying for grants and scholarships, making an income-driven repayment plan, deferring loans, and taking advantage of federal loan forgiveness.
Loan Forgiveness
If you’re trying to get rid of your student loan debt, you might be interested in seeing if there’s a way to have it wiped out. You might be eligible for loan forgiveness programs that make repayment less painful or even erase your loans completely.
There are two ways to pay off student loans. The first is to take out a loan and then immediately repay it in full by the end of the year. This can be done if you have a high income, but if you don’t, there’s other options. The Department of Education also offers tax-free payments from your paycheck to your student loans every month, which can help you save money on interest fees.