North America is in the midst of a student debt crisis. The exorbitantly high cost of post secondary education and a job market where repayment often takes years to complete means that student loans tend to follow people around for a depressingly long time.
Pursuing a masters or other graduate degree often comes with the foreknowledge that you are committing to a life of indeterminable debt servicing. If you are about to graduate or have already done so, here are a few tips to pay off your student loan faster:
Continue living like a university student.
Just because your post-secondary days are now behind you does not necessarily mean the lifestyle is. Continuing to live frugally is important after you graduate so your loan is not following you around into middle age. That one-bedroom loft right in the heart of the fashion district may have to wait until you can really afford not to have roommates.
Use public transportation.
Being a new graduate, the newfound freedom and entry into the professional world, or at the very least, the professional job market, seems like an excuse to celebrate, and it is. However, in keeping with the theme of frugality mentioned above, a brand new shiny car to commemorate the new chapter you are starting is probably not a prudent investment given most people’s immediate post-college financial situation. Aside from being a more environmentally friendly option, public transportation is probably the best thing for a recent graduate’s wallet.
Automate your payments.
Automated payments are a great way to declutter your life. Bills that have to be paid one way or another can be set-up and linked directly to your bank account so that money is automatically withdrawn every month, eliminating one more thing off your monthly to do list.
Being a recent graduate can be as stressful as it is liberating. Knowing that you owe a large sum of money to the government or private lender that is not going to pay itself off overnight can weigh on your psyche. Follow the above steps for faster student loan repayment and get back to being debt free.