The way student loans work, it is tempting to cast them out of our mind and revisit them on that distant day well into the future when they will become repayable. After all, they don’t have to be repaid until the student enters into the world of work, and then only when a certain earnings threshold is reached. Even then repayments will only be a portion of the amount earned over and above that threshold. So is it worth even thinking about paying them off more quickly?
Well, quite apart from the desirability of being debt free there is the small matter of the effect having an unpaid student loan might have on the question of whether or not one might be able to obtain a mortgage. Yes, you read that correctly – although amounts owing on student loans are not taken into account when a mortgage is being applied for the repayments do constitute a part of the overall affordability calculation. Thus if an applicant is deemed to be rendered incapable of meeting the minimum repayment due to outgoings on the repayment of a student loan this could make the difference as to whether one is granted a mortgage or not.
Save More, Repay More Quickly
This is why there are benefits to be had from paying off student loans more quickly than is formally required. It is always good to be debt free, and so the faster that can be achieved the better all round.
What is needed then is a strategy for raising extra funds, which can be used for increasing repayments with a view to settling the account as soon as possible, before the date upon which they become officially due.
Three Ways of Raising Extra Money to Repay Student Debt Faster
- Use the internet to its fullest potential to raise extra funds. There are a number of ways of making extra cash online with just a little technical know-how. Signing up to affiliate schemes will generate a passive income whenever somebody makes a purchase from a site you have linked to. Complete online surveys for a modest but consistent return, or volunteer for highly-paid market research opportunities through attending focus groups and giving your opinion on brands and products. Another way of making additional income through the internet is by taking advantage of sign-up bonus offers on reputable betting websites. Note – you should avoid this last option if you have an addictive or compulsive personality as it most certainly doesn’t make you any money if you allow yourself to be sucked into gambling!
- Save money by reducing your bills to a minimum. Renegotiate mobile and broadband contracts, and use vouchers for discounts as much as you are able when you shop.
- Clear space and make money at the same time by selling unwanted items. Sometimes we can be surprised by what we find lying around the house or in the shed, gathering dust. If you don’t need it sell it, and put the proceeds towards paying off those student loans more quickly.