How to Re-Pay Student Loans Faster in UK?
The number of students enrolling in UK’s colleges and universities is increasing rapidly, so are the Student Loans Service Provider in the UK. According to the survey, there are thousands of students studying in the United Kingdom are under a debt of student loans. But there are also many smart ways to repay these loans without worrying much about it.
That said, there are workable ways to make your student loans payable faster than you had planned, and save money by doing so!
Here are some ideas:
1) Pay Straight Away
Even though you’re usually not required to, consider making student loan payments during your grace period or while you’re still in school. If you’re short on cash, consider at least paying enough each month to cover the amount of interest you’re occurring. That way your interest doesn’t capitalize and get added to your principal balance. Not doing this was one of the biggest mistakes I made with my student loans.
2) Opt for Automatic Payment
If you sign up for automatic debit, your student loan service provider will automatically deduct your student loan payment from your bank account each month. Not only does this help ensure that you make payments on time, but you may also be able to get an interest rate deduction for enrolling. Contact your loan servicer to see if your loan is eligible for this benefit.
3) Pay More than Your Minimum Payment
Though it’s £ 5 a month! Paying a little extra each month can lower the interest you pay and reduce your overall loan costs over time. (Pay attention! This next part is important!) If you want to try to ensure your loan is paid out more swiftly, be sure to tell your loan service provider that the extra amount you were paying is not intended for future payments. Ask your servicer if you have given the option the additional payment amount can be allocated to your higher-interest loans first.
4) Use Your Tax Refund
One easy way to pay off your loan faster is to dedicate your tax refund to paying off some of your student loan debt. Part of the reason you may have gotten a refund in the first place is that you get a tax deduction for paying student loan interest.
5) Seek Out Forgiveness and Repayment Options
There are a number of situations under which you can have your federal student loan balance forgiven. There are forgiveness and repayment programs for teachers, public servants, members of the United Kingdom Armed Forces, and more.
Most of these programs have very specific eligibility requirements, but if you think you might qualify, you should definitely do some research. Also, research whether your employer offers repayment assistance for employees with student loans. There are many who do!
London Loan Company is a UK based loan broker that helps to cater to all short term and future wants. We provide a whole range of different types of loans and services along with excellent customer support.