National nonprofit American Consumer Credit Counseling explains five tips to pay off student loans at the fastest rate possible
Boston, MA – October 11, 2018
Graduating college is an amazing feeling until you’re hit with that first student loan payment. For many students, that occurs in the fall when their first federal loan payment is due. The amount of student loan debt can seem overwhelming, and for some consumers, it can feel as if the loans will take an eternity to pay off. In an effort to help, national nonprofit American Consumer Credit Counseling offers consumers five tips on how to quickly pay off their student loans.
“The faster you are able to pay off your student loan debt, the less you will get stuck having to pay in interest,” says Steve Trumble, President and CEO of American Consumer Credit Counseling. “With the average student graduating with more than $35,000 in student loan debt, it is important to establish a plan to ensure monthly payments are being made and any extra income is put towards your debt.”
According to Make Lemonade, the total student loan debt is at $1.5 trillion, over $600 billion more than the total U.S. credit card debt, with 44 million borrowers. Student Loan Hero found that the average student loan debt in 2017 was $39,400, which is six percent higher than 2016. The average monthly student loan payment is $351 and the delinquency rate is about 11 percent.
ACCC offers five tips on how consumers can quickly pay off their student loan debt.
- Pay more than the minimum – Add a little extra money to each monthly payment. Additionally, it is easiest to set up automatic payments to include the extra monthly sum.
- Refinance – Consumers should consider refinancing their student loan debt to decrease interest rates. It is best to do research and only refinance the loans that will decrease the interest rates.
- Focus on high interest loans first – Go through all of the loans and pick the ones with the highest interest rates. The balance on these loans will grow the fastest, so it is smart to make sure any additional funds are going towards the ones with higher interest rates.
- Tax deductions – Take advantage of all tax deductions and credits. Student loan interest tax deductions allow consumers to reduce taxable income up to $2,500 each filing year for the interest paid.
- Utilize raises and bonuses – Most jobs will offer a yearly raise or bonus. With each raise or bonus, place a chunk towards student loan repayment.
ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:
- For credit counseling, and student loan counseling call 800-769-3571
- For bankruptcy counseling, call 866-826-6924
- For housing counseling, call 866-826-7180
- Or visit us online at ConsumerCredit.com
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. To help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft, senior living, and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit https://www.consumercredit.com/debt-resources-tools/