By Celeste Lohrenz
Did you know that the average student loan payment is $393? That’s a major expense in and of itself — but as most borrowers know, the real cost of student debt is much higher than their monthly bill.
The burden of student debt can hold borrowers back from major life events and financial goals, including buying a home, opening a retirement fund, going back to school, and even getting married and starting a family. And because it takes the average borrower 20 years to pay it off, student debt can negatively impact borrowers for decades.
With so much at stake, you may find yourself wishing you could pick up the pace on your payoff. Luckily, The Milford Bank offers FutureFuel.io as a value-added service to help you manage and repay your student loan debt faster and smarter.
Here are four ways you can pay off your student debt faster with FutureFuel.io:
Make extra payments
It may sound like a no-brainer, but making extra payments can get you on the fast track to a student debt-free future in more ways than one. That’s because the lower your overall student loan balance, the less you’ll pay in interest over time. Depending on your specific situation, it may make sense to budget to pay more than your required minimum payment amount each month, or use any unexpected extra cash to give yourself a boost. If your workplace offers a student debt repayment employee benefit, taking advantage of their contribution can help you get ahead faster, too.
Tip: Auto-Crush from FutureFuel.io makes it easy to send one-time or monthly recurring payments to any or all of your student loans from one central dashboard.
Turn spare change from everyday purchases into student loan contributions
Pennies and dimes can add up to a big impact fast thanks to Round Up from FutureFuel.io. Simply connect your debit or credit card, then Round Up will go to work rounding your purchases up to the nearest dollar and stashing the spare change. At the end of the month, those funds will be sent as an extra student debt contribution.
Convert cash back rewards into student loan payments
Love online shopping? Take your purchases the extra mile by activating Giveback by FutureFuel.io. Giveback collects cash back rewards from hundreds of your favorite online merchants and sends them to your student loan debt.
Switch to an income-driven repayment plan
The Department of Education offers four different income-driven repayment (IDR) plans for federal student loans. While these won’t technically help you pay off your student debt faster, they can help you get rid of it faster. That’s because IDR plans forgive any remaining debt after a set period of time (20 or 25 years, depending on the plan), and can make your monthly payments more affordable in the meantime.
Tip: FutureFuel.io’s Reassess tool can help you check your eligibility for, compare, and apply for federal income-driven repayment plans in a matter of minutes.