Tips for Paying Off Student Loans

Whether you’re just starting school or have already graduated, the total amount of your student loan debt can feel overwhelming. Here are a few tips to help you stay on track when it comes to paying off your student loans.

Enroll in autopay. To make sure you never miss a payment or get behind, enroll in autopay. This will help you stay on track with your repayment schedule and help you avoid a late payment which can affect your credit score.

Opt for more. If you are able to make more than the minimum payment, do so. Even if you are not able to do it every month, this extra money will add up, minimizing your repayment schedule and interest costs.

Make it count. Did you receive a raise or bonus at work? Are you looking into a side job for some extra cash? Make sure you are keeping your debt top of mind and allocating some of the new-found income toward it.

Create a college repayment fund. For some, it’s helpful to create a specific savings account just for student loan repayments. By making an account that can’t be dipped into easily with a card, you’re ensuring that the money set aside is truly being used for its purpose.

Tax deductions. When tax season rolls around, make sure you are taking advantage of any eligible tax deductions. This includes the interest paid on your student loan over the year.

Paying off student loans doesn’t have to be daunting if you budget and stick to your plan. If you’re thinking a college repayment fund makes sense for you, give us a call at (800)235-5331 or contact us here to discuss the different options F&M Bank can provide.

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