It’s no secret that student loan debt is a massive issue in the United States. According to Forbes, as of 2018, Americans owe over $1.5 trillion in student loans! This can be an enormous burden for borrowers, especially if they struggle to make ends meet. In this article, we will discuss some tips on how to get the lowest student loan payment possible. Keep reading to learn more!
Check your credit score and get a copy of your credit report.
If you have good credit, you may be able to get a lower interest rate and save money on your monthly payment. If you have bad credit, there are still options for getting a lower student loan payment. You can talk to your lender about consolidation or refinancing your loans.
Income-driven repayment plans can lower your monthly payments based on your income and family size. In addition, these plans can help if you’re having trouble making your payments. You can learn more about these repayment plans on the Federal Student Aid website.
If you’re struggling to make your payments, don’t wait until it’s too late to get help. Instead, talk to your lender about your options as soon as possible. They may be able to work with you to lower your student loan payments or help you get back on track.
Compare interest rates for student loans.
Like most people, you probably want to get the lowest student loan payment possible. Here are a few things you can do to make that happen:
Check your credit score and get a copy of your credit report. This will give you an idea of where you stand in terms of your creditworthiness. If your score is on the lower end, getting a low-interest rate on your student loans may be challenging. However, if you have good credit, you may be able to qualify for a lower interest rate, which could save you money over the life of your loan.
Consider a private loan if you can’t get a reasonable rate from the government.
It would help if you always started by looking for the lowest interest rate possible. You can use a variety of methods to find the lowest interest rate. The best way to find the lowest interest rate is to shop around. You can use various resources to find the best deal on a private student loan.
Another tip for getting the lowest student loan payment is consolidating your loans. Loan consolidation can help you get a lower interest rate and a lower monthly price. If you have multiple loans, you may be able to save money by consolidating them into one loan with one monthly payment. You can learn more about consolidation in our guide to student loan consolidation.
Enroll in an income-based repayment plan.
Consider an income-driven repayment plan for your federal student loans. An income-driven repayment plan sets your monthly federal student loan payment based on your discretionary income, family size and state of residence. These plans are only available to federal student loan borrowers.
If you’re struggling to make your student loan payments, enrolling in an income-based repayment plan could help lower your monthly payment. With an income-based repayment plan, your monthly student loan payment is based on a percentage of your income. Another option will be to see if you qualify for an extended repayment plan, which will lower your monthly payment.
If you have a federal student loan, you might want to choose a different student loan repayment plan, such as an income-based driven repayment plan that will base your loan payment on your income and reduce your monthly payment. If an income-drive repayment plan reduces your monthly payment, you will likely increase the length of the repayment term.
There are several different income-based repayment plans available, so it’s essential to do your research to find the right one for you. You can learn more about the different types of income-based repayment plans and how to apply for them on the U.S. Department of Education’s website.
Request a deferment or forbearance if you can’t make your payments.
If you cannot make your monthly student loan payments, don’t wait until you’re behind to take action. You might be able to stop or lower your payments temporarily. This will help you stay current on your loans and protect your credit score.
There are two ways to do this: deferment and forbearance. With deferment, you can put off making payments on some or all of your loans for some time. Forbearance allows you to make smaller payments or skip costs altogether for a limited period.
Contact your loan servicer to see if either option is available to you. They’ll be able to tell you what options are available and which one makes the most sense for your situation.
If you’re having trouble making your payments, don’t wait to take action. Instead, request a deferment or forbearance from your loan servicer today.
Consolidate your loans to get a lower interest rate.
Direct loan consolidation combines your current federal loans into a single federal student loan. The advantage is that you will have one student loan, one monthly payment and one interest rate.
You can extend the repayment period to get a lower monthly payment with a direct consolidation loan, but you won’t get any student loan forgiveness. (Here’s who won’t get student loan forgiveness ). Remember, when you extend your repayment period, you may save money each month, but you will pay more interest the longer it takes you to repay your student loans.
Consolidation is only available for federal student loans, not private student loans. If you want to consolidate your private student loans, you’ll need to contact your lenders and ask if they offer consolidation or refinancing.
Sign up for automatic payments.
Private lenders often offer interest rate discounts for borrowers who set up automatic payments from a bank account. Autopay discounts can help reduce your monthly payment amount and your long-term interest costs.
If you have private student loans, ask your servicer if these discounts are available for your loan.
There are several ways how to lower student loan payments. Of course, you want a lower payment, and the type of loans you have will help determine which is best. You can temporarily lower or stop payments, consolidate multiple loans into one, or sign up for autopay with your private lender.