Graduate Early from your Student Loans
I’ve been waiting for Mint to roll out student loan tracking features—joining now! Thanks! This will help me keep track of my loans—currently split between four services.
—Amy, Mint Blog
We don’t say this often: you may not want to pay off this debt just yet. Why? Some student loans have very low interest rates, and the interest paid on student loans is typically tax deductible, depending on your income. However, if you’re ready to complete your payments on that cap and gown, here’s our lesson plan:
Understand your options at the start
Many lenders offer either extended time to pay, or lower initial payments. These options will cost you more in interest long-term, so take them only if you really need them. It’s important to choose a payment plan that you know you can afford. Missed payments have a negative effect on your credit rating, and penalties can cost you even more.
Struggling to make payments?
If you’re already making payments, ask your lender if you can exercise extended payments now. Find out how close you are to earning a lower interest rate with your current lender, (some will reward on-time payments), and whether your current rate is still competitive—FinAid’s Student Loan Comparison is a good resource.
Everyday spending can pay too
Sign up for a free student loan rebate program like UPromise or Grad Gold. Ask your friends and family to sign up, too. A percentage of the online spending you already do will be credited to your loan, reducing your debt with no added cost.
If you have extra money, use it
Mint makes it easy to identify areas where you could save money. Add your bank accounts and credit cards to Mint. We’ll download, categorize, and analyze all your spending automatically every night. Use our Spending Trends feature to find savings which you can apply to increasing the size of your monthly loan payment.
Track your student loans in Mint
Add your student loans to Mint so you can start tracking your progress. We support hundreds of lenders. Create budgets and alerts to help you meet your new spending goals and reduce your debt at a faster rate.
Consolidate if you can!
If you have more than one loan, consider consolidating them. You may be able to accelerate your payments, reduce your interest rate or reduce your principal if you do. Comparison shop and negotiate for the best borrower benefits. Don’t be tempted by lower monthly fees, though, if you have to agree to longer payment terms to get them.
