THE BLOG
10/26/2016 06:32 pm ET Updated Dec 06, 2017

8 Intelligent Moves for Those Stuck in Student Loans

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Those of us who have taken student loans know how intimidating it seems, when it comes to graduation. It's not the job hunt that scares us but the thought that how much time will it really take to be loan free.

With such economic circumstances, being an average college student is probably the most expensive past time. According to the statistics of 2016, a student who availed such loans graduated with a $37,000 debt-tag.

So the question remains:

What to do when it comes to paying back student loans?

Here are some smart ways with which you can manage your loans rather quickly and effectively:

1. Understand and get help

Fortunately hope still exists. Several organizations exist that aim to help such graduates out. According to Jason Spencer, the founder of Student Loan Relief, in order to pay off such loans, one must have adequate knowledge of the Federal and State Congressional Bills.

This requires extensive research on behalf of the student. This is why experts and specialists exist which do all the work for them and offer them different programs through which they can opt for the best option and unchain themselves from the shackles of loan.

2. Consider making payments while enrolled

Instead of living like a broke graduate for the rest of your life, consider making small payments while in college/school.

This will not only lessen the burden on you but will certainly help you pay them off faster. Since the interest meter is running while you are still enrolled in your program, why not start paying even then?

3. Pay a little more than required

Once your dollars start coming, think about this option. Although this might appear to be a little too much to ask for, but paying a little bit more, doesn't matter if its $5 or $10, will help you in the long run.

It does not have to be every month though but with the interest meter running, it is not at all a bad option. Also, according to experts for every extra $1 paid, you can expect a $2 cut out from the overall loan.

4. Earn more, spend less

The golden rule. As much as you understand this, follow it like a motto. Spend less and earn more.

5. How about bi-weekly payments

It may sound strange, but bi-weekly payments work efficiently, when it comes to paying back loans. This is because with in the payments, there is less time for interest to accumulate.

Plus in case of getting paid, you receive half of your payment at the end. The monthly payments, however, take off a huge chunk of your payment (or maybe that what it appears to feel like).

But moreover, bi-weekly payments are easy to manage and coordinate.

6. Automated payments

You can sign up for this option. What will happen in this case is that the payment percentage will be automatically deducted from your paycheck and chances are that the lenders will lower the interest by 0.25%.

Plus, a basic human psyche plays a role in this: You won't see the money, you won't miss the money.

7. Tax deductions to the rescue

Always, always, always consider using this option. The interest one pay's on student loans is tax deductible.

This option gives you the opportunity of using government's money to lessen your own debt. The best way to do this is to consult it with a tax officer and they will work out a way for you.

8. If nothing works, get someone else to pay for it

Now this may seem dramatic, but if by any luck, you can have your loans paid off use that option. But in a realistic world, this option is still available, as most companies offer to pay off a huge part of loan on behalf of the hired graduate.

The catch is that you might be offered to work for a reduced salary for some time. But hey! The interest meter is always running and it is best to pay off those loans in any case.

Adeyemi Adetilewa is an entrepreneur and professional content strategist who writes about business, entrepreneurship, life hacks and everything in between. You can checkout his recommended business resources for free.