How to pay off your Education Loans quickly?

Education is the stepping stone for future. Your degree and the institute you study can set you apart from the rest and pave the way with the right foundation, for higher grounds in life. However, it can also be a financial burden to take on. Education Loan repayment is one of the major expenses that many college graduates and their parents have to deal with. However, the right loan and repayment plan can help you settle your debt conveniently without stressing over it for years.

Here are some tips to speed up your student loan payment:
 

Prioritize paying your Student Loan debt
 

Getting a job can be thrilling. Earning your own money and being financially independent is a dream for all students. However, many a time, when the cash starts flowing in, expenses also increase. Impulse shopping, maintaining a vibrant social life, and fulfilling life goals like buying a car, a house, etc., can tower over. However, before you start spending your money, try to get rid of your previous debt. Student loans can be challenging to pay off because of their large values. The long term can also be misleading as it makes you feel like you have a lot of time. However, the sooner you pay your loan, the more focused you can be on planning for your life ahead.

Get a low-interest Education Loan
 

Student loans are infamous for high-interest rates. So, it is best you compare various loans from different banks and loan providers to choose one that gives you low-interest rates. You can look at IDFC FIRST Bank's Education Loans which offer competitive rates starting from only 9.5% per annum.

IDFC FIRST Bank offers student loans for over 3200 universities across more than 25 countries. You can get a loan of up to Rs.75 lakhs at minimal fees and charges. This makes it easier to pay off your loan as soon as you get a job.

Select Income-Driven repayment plans

Income-driven repayment plans adjust student loan repayment according to your income. These loans cap the interest at a fixed percentage of your salary, for instance, 10% of your income. The value of the installments increases as you excel in your career. This can be ideal for professions that may not pay high salaries at the beginning but offer the potential to grow with time.

Create a budget

Creating a budget is a life-long advantage. A budget highlights all your expenses and savings and lets you take charge of your money. With a budget, you can diligently allocate a part of your salary towards debt repayment and clear your loan quickly without any digressions.

Use any surplus money to clear the loan

Extra money earned from a bonus at work or a gift from a loved one can all be contributed towards education loan repayment. Using your excess funds to repay your debt can ease the burden and accelerate the repayment process.

Conclusion

The sooner you clear your Education Loan debt, the faster you can start planning for other life goals. So, make sure you pick a low-interest loan like the IDFC FIRST Bank's Education Loans and make it a priority to settle it from the day you start earning.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.