Free up your student debt load and start living.
Now that the student life’s behind you, it’s time to put your student debt there too. Here’s a few tips to help tackle your loan like a champ.
The only reliable way to pay off your student loan ahead of schedule is to pay it down more quickly than you need to. That means either larger or more frequent payments. Set your regular payments above the minimum, and if you suddenly have some extra cash, use it as a lump-sum payment.
Cut your costs
Have a look at your costs and see if there are places where you can save. A budget can help get this started. If you’re just stepping out of the student life, there’s a good chance you already live a pretty lean lifestyle. Keep that going for as long as you can and you’ll have more money available to tackle your debt. This might mean decisions like choosing a smaller home, but it can also be making your own coffee and packing a lunch for work. Every little bit helps, and those little savings can really add up over time.
Take advantage of your grace period
When you’re finished with school, our STUDENTCHOICE® Quick Loan gives you a 6-month grace period before you need to start paying down the loan. Government student loans come with this same perk. If you’re out of school and into a job right away, you can get the jump on your loan principal by starting payments before the grace period ends.
Before you attack your student loan, consider whether it’s your financial priority. If the interest rate on your student debt’s lower than what you could get from an investment, you’re probably better off with that investment. If you have other high-interest debt – like a credit card – it makes sense to tackle that first and then move onto your student debt.
If you have questions, call our Contact Centre at 1.866.863.6237, and if you’d like help charting your financial future, our advisors are here to help.