It's estimated that 43.5 million Americans carry student loans. But the longer those loans drag out, the more interest you're apt to end up paying.
Plus, carrying student debt could impede you from reaching other goals. You may, for example, feel uncomfortable buying a home while you still have monthly loan payments hanging over your head. And you may feel forced to delay your retirement savings efforts until you're free and clear of student debt.
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As such, it's important to do what you can to shed that debt quickly. Here are a few tips to pay off your student loans within the next 10 years.
1. Make more than your minimum payment each month
You may be inclined to send in your required monthly student loan payment and call it a day. But if you want to make sure you're debt-free sooner, put a little extra money toward those loans every month if you can.
It may be that some months, you're sending in an extra $30, or an extra $50. But over time, those added payments are apt to add up.
2. Don't get on an extended repayment plan
If you took out federal student loans, you may have the option to get on an extended repayment plan. Doing so serves the purpose of lowering your individual monthly loan payments by stretching out your repayment window.
But if you get on one of these plans, you might end up having student debt hanging over your head for years on end. And the same might hold true if you go onto an income-based repayment plan, which will calculate your monthly payments as a percentage of your earnings.
So instead, stick to the standard repayment plan, which comes with a 10-year payoff window. Your individual monthly payments may be higher, but that way, you'll be debt-free sooner.
3. Pick up a side hustle to boost your monthly payments
The gig economy is booming these days, and that means there may be plenty of opportunity for you to pick up a side job. The money you earn from that gig can be earmarked for your student loans so that you're able to get ahead of your repayment schedule. And that way, you won't need to force yourself to slash your spending to put more money from your regular paycheck into your loans.
Besides, inflation is still an issue these days, so you may not have much wiggle room in your budget to free up extra money to pay off your debt sooner. A side hustle could solve that problem, all the while allowing you to develop skills that make you better at your main job -- and potentially get promoted because of that.
Shedding your student debt fairly quickly may not only be a good thing for your finances. It might also work wonders for your mental health. There's something to be said for being able to go about your life without feeling the weight of nagging student loan payments. So if you're eager to be student debt-free within the decade, put these tips into action.
