The reality of moving on from college doesn’t always set in right at graduation. It usually comes a few months later, when you get the first billing statement for your student loans. Seeing a balance of $30,000 can make the gravity of adult life hit home in a very real way.
We can help you pay back your loan in more ways than you might realize, and save you money in the process. Here are three convenient ways you can pay for your education and have greater flexibility. You might be able to get some extra rewards out of the deal too.
A savings account for college students
You can’t start paying off your student loans while you’re in college. But that doesn’t mean you have to sit and wait to get buried under an avalanche of debt. You can take proactive steps while you’re in school to make your life easier.
Your student work or part-time job might not make a dent in astronomical tuition costs, but it can still help you get out of debt faster. Setting up automatic savings account transfers will force you to put away a little bit each month. You can use that once you’re out of school to make a big first payment. It’ll really take the sting out of the debt load.
Make sure to put this money into an account you won’t be tempted to use for other things. The $50 or $100 you put away every month could rapidly disappear through dinners out and concert tickets. Automating savings is a way to keep yourself disciplined and on target. Our Reward YA! Savings Account can give you the resources you need to start saving for the future.
Automatic Bill Pay
One way to get ahead of student loan debt is to pay more than the minimum amount due each month. Maybe starting out you’ll only be able to pay an extra $10 or $20 per month—that’s okay. Start out small and then when your budget and income allows, increase what you’re able to pay on your monthly student loan payments. The more you pay each month, the more you’ll save on interest in the long run.
Making your payments automatic with Bill Pay is a helpful way to stick to this goal. With Bill Pay, you can designate an amount of your choosing to be paid to the lender every month. You can pay your loan back at your own pace. It’s also a great way to make sure you never forget to make a payment because it happens automatically.
Consolidate and refinance
College is about the journey, not the destination. If your journey was longer than usual, you may have debt from several places. You may have used your credit card to finance your living expenses or taken out unsubsidized loans from private lenders. These variable interest rate loans can really hurt you financially.
It might be time to consider refinancing. You can take a personal loan for all your outstanding debt and consolidate it into one monthly payment. You may be able to lower your interest rate and simplify your financial life at the same time.
This process can also include a free financial review with one of our knowledgeable representatives. You can gain advice on budgeting and make a road map to a truly debt-free future. To see if consolidation is right for you, stop by any Partner Colorado branch today!
Being in control of repaying your student loans will give you a sense of financial security. If you have any questions or need help repaying your student loan debt, we’re here to help.