Easy tips for eliminating student loan that you may not know

[As featured on the nest]

Depending on the school you attended and how long you went there for, your student loan debt might be pretty sizable. Although eliminating this debt can be intimidating, it’s not impossible. By following a few tips, you can get your finances back on track and finally put this burdensome debt behind you.

Make Principal Payments

Many student loan debt holders attempt to get ahead on their debt payments by paying more than the minimum. While this is a good practice, you should take care to ensure that your payments are being applied directly to the principal of your loan. When you make these over-the-minimum payments, contact the loan holding company and specify that this money is intended for the principal of the loan, not as a means of pushing back your next payment due date. Unless you do this, there is no telling how this money will be applied.

Deduct for Savings

When tax time comes, don’t forget to deduct your student loan interest. You can deduct up to $2,500. Earmark the money saved through this deduction to pay extra principal on your student loan.

Dedicate Extra Cash to Student Loan Repayment

While it might not be the most exciting thing to do with extra cash you come across during the year, applying extra money to student loan repayment is a wise choice. If you get money for a birthday, receive a larger-than-average tax refund or even win some money in the lottery, the financially wise thing to do is pay down your student debt. By following this responsible path, you can cut down on loan-related stress and improve your financial outlook.