What is the best strategy for paying off student loans?

Now this is from the perspective of an American.  I am not sure of the British laws on student loans, but my advice does works in all countries. Pay off the debt as soon as possible. 1.  Here in the USA we get a tax “advantage” for student loans, and mortgages.  But, you end up only saving about $3.00 for every $10.00 spent on interest.  In my mind money spent, is money spent.  I don’t care if I spend a dollar on a candy bar, taxes, interest, or on a homeless guy it is money spent, and gone.  But, if you want to give me $10,000 I will be happy to give you $3,000.  I will even do you one better and give you $3,500.  2.  Do you want to buy a home?  Well if you do that debt is going to limit what you can buy if you only pay the minimum.  While if you pay it off, or you kill that debt down things will look much better for you in the eyes of the lender. 3.  Let’s say your payments are 100, 300, or 500 GBP.  What would you rather do with that money?  What could you do with that money? 4.  The recent recession taught me that our jobs are not permanent.  The employee is disposable, they can get fired.  So, what will happen if you get laid off and you still have that debt to pay? 5.  Here in the US there are just a few ways to get rid of student loans.  Death, and death of the debt.  One cannot dismiss the debt in bankruptcy, or other means.  It is ether paid off or you die.  There are some people who are so disabled they do not have to pay, but I have also heard of people who are on social security disability and the lender is garnishing their social security income.

If the interest is equal to the inflation or possibly even less, then you are effectively not paying any interest at all (maybe even gaining value as the money you pay later would be worth less than the money you pay now). In this scenario (mostly in cases of Government subsidized loans), you are better off investing in something which has the potential to exceed  inflation. If there are no such opportunities, you can pretty much pay as you please. Paying later might be beneficial as you are likely to be earning more and hence would lead to lesser reduction in your quality of life.

Ideally, you should follow strategy A, as this will allow you to have back-up funds in the event of a personal emergency. However, for many graduates this is incredibly difficult - their monthly student loan repayments take up more than half of their disposable income each, so simply meeting these obligations can be a challenge. Student loans have the highest 90day delinquency rate of any form of debt, and reaching this state can have negative implications on your credit rating, impacting future ability to take out a mortgage or another loan, for example.So firstly, ensure you are able to meet the monthly minimums. There are debt management tools that can help you to remain on top of your loans and payments, and keep a clear log of your loan payment horizon goals (which can be especially tricky if you have multiple loan providers). A good example is http://tuition.io/.I would also recommend checking out http://gradible.com/. This is an online tool that will quickly and easily analyze all of your possible repayment options, and show which would make the most sense for your given situation.Specifically, this will include: All federal, income-driven repayment plans (which may lower your monthly payment and/or total) All forgiveness opportunities (at both the national and state level, across multiple occupations). All private refinancing options While this is the only fully comprehensive resource across each of these categories, you may also want to check out more information about these options independently. If so, the following resources are pretty good:1 - Income Based Repayment - More info at http://studentaid.ed.gov/repay-loans/understand/plans/income-based2 - Student Loan Forgiveness - Excellent pdf of all programs here...  https://www.saltmoney.org/content/media/Article/60-ways-to-get-rid-of-your-student-loans-without-paying-them/_/R-101-7723Hope this was helpful, feel free to send me a message if you have any other questions.

There are golden rules in the personal finance world, and this is one of them: An emergency fund is absolutely necessary, even if you have a big student loan payment (and even if you live in a city where cocktails cost $15). Set a manageable goal for your emergency fund — whether it's $500, $1,000, or three months' worth of living expenses — and set up a recurring transfer from your checking account into that savings account until you reach your goal. If you transfer $100 or $200 a month, it might take some time. So in the meantime, you can make the minimum required payment on your loans. Once your emergency fund is set, take the same amount you've been putting into your savings account and put it towards your loans instead, so you're paying more than the minimum. Then you'll be able to pay off your loans faster, and have the security of a savings account for emergencies. I wrote an article http://www.nerdwallet.com/blog/loans/student-loans/ask-brianna-emergency-fund/?trk=nw_Quora_ask_brianna_emergency_fund here if you'd like a little more detail on how to do it!

This is such a common problem for all graduates. Like most of the answers have already mentioned, the best way to avoid them = don't get them in the first place. I want to introduce to you a new concept that I wish I knew while entering college. It is this: The 7 Steps To Become A Recession Proof Graduate This video covers in detail on how to become a recession proof graduate. http://amzn.to/1GHvrY7 Charlie went from being a broke college graduation in the middle of the recession to working with New York best selling authors, film makers, and successful entrepreneurs. But how does he do it? He outlines it in his book, http://amzn.to/1GHvrY7, which I highly recommend you read. These cliff notes doesn’t do his book justice… http://amzn.to/1GHvrY7 I write about this kind stuff on my blog, http://www.outsideoftheclassroom.com/. If you like this post, you would love the rest of my stuff. Anyways, back to the question. Step 0: Stop acting so entitled Just because you have a college degree does not guarantee that you even deserve a job. Get rid of your ego, and let’s move onto step 1. Step 1: Pick a few industries that interest you. You have to find out what you want and the best way to do that is through experimenting. Once you find a few industries that interest you… Step 2: Develop In-Demand Skills Being proficient in Microsoft office is NOT a marketable skill. In demand skills is like putting out oil fires in the Middle East. Is it terrifying? Yes. Is it a skill that’s rare and in high demand? YES. What are some in demand skills = learning how to code, how to build apps, web design, etc. You don’t have to be an expert, but you just have to be good enough to do the work. I personally know how to edit a video, take photographs record a podcast, write a blog post, speak in front of a crowd, build a basic website, sell something, and so much more. Teach yourself through books, YouTube, online courses, personal training, or even hands on experience. Step 3: Build up your online showcase We live in an age where you can do almost anything for free. Make movies, create an album, raise money, learn anything you want, create softward, all for FREE. You need a place to show your work: whether it is a blog, personal website, YouTube. No matter what you choose, you’ll want to have professional quality content coming up whenever someone googles your name. Step 4: Pay the bills, cut costs Doing the free work approach will not get you paid in the beginning… so do a day job and do the free work as a side hustle. You might think that this is stupid and counter intuitive but you have to think about the LONG GAME. Step 5: Pick your partner Choosing the right person to do free work for is arguable the most important step. This HAS to be somebody that you respect, that you would want to learn from, that you want to be apart of their awesome work. Find people in your industry and see which empire do you want to help build up? Do a ton of research. Step 6: Pitch Free Work “SUBJECT: I want to work for you, for free Hi [NAME], I’m a long-time fan of your work, and I really believe in [DESCRIBE THEIR MISSION]. I have some ideas about how we can further that and make it even easier for you to [INCREASE REVENUE, ETC]. Your work is important, and I believe I can help you get to the next level. Here’s my idea: I would love to [PROJECT YOU CAN COMPLETE REMOTELY], which will ultimately help you [INCREASE SALES / REDUCE COSTS / MAKE CUSTOMERS HAPPIER]. I am an expert in [YOUR IN-DEMAND SKILL SET]. I’ve worked with [CLIENTS OR COMPANIES YOU’VE 66 HELPED], and helped them achieve [RESULTS]. Here is a sample of the quality you can expect from me: [LINK TO YOUR ONLINE SHOWCASE, OR SAMPLE OF YOUR WORK] I don’t normally discount my rates, but I’m willing to do this project for free. I’ll send you a few brief updates on my progress for the next two weeks. If you don’t like my work, you can scrap it and move on (no money lost, and no hard feelings from me). But if you do like my work, I’d love to discuss a few more ideas for helping you with your business, and the potential of a more formal work arrangement. Would a discussion on how to help you [ADVANCE YOUR MISSION] be of interest? If so, let’s set up a call. Does next Tuesday @ 1:30p or 3:00p EST work for you? I can be reached at [PHONE #].” Notice how you did so much research on that person, found out what problems they were facing, and offered REAL IDEAS TO SOLVE THEM. NO ONE IS DOING THIS… but you can be that 1%. Step 7: Transition to paid work Be appreciative at the opportunity they’re affording you, but make it clear that you’re also in a financially tight spot. “Hi [NAME], We’ve been working together for [NUMBER OF WEEKS] now, and I’m thrilled with everything we’ve accomplished. Since we first started, we’ve [RESULTS YOU’VE DRIVEN, IMPACT YOU’VE MADE]. The whole experience has been invaluable to me, and I really appreciate you giving me a fair shot. My free trial run is coming to an end, but I would love to keep working together. Going forward, I’ll continue working on projects that will move you toward your goals and bring your business to the next level. In fact, the next project I’d love to tackle is [ANOTHER IDEA THAT WILL BE VALUABLE]. The only change, of course, is that I would be charging for my services from this point forward. Are you still interested in working together on a paid basis? Please let me know what you think. Either way, I’m extremely grateful for the opportunity, and I wish you all the best in the future.” They trust you, you have proven the value of your work, and they know it would take more time to train someone else on that same position. People won’t take advantage of you unless you let them. Be assertive and don’t get into a long-term deal with someone unless you’re both comfortable with the agreement. If you’re reliable and do good work, they’ll have more to lose by not paying you then you will by working for free. http://amzn.to/1GHvrY7 --- Thanks for reading my post. If you liked this answer, you can find more of my work on my website and pick up my #1 bestselling book, How To Network: Instantly Build Trust & Respect With Anyone You Meet, for free here: http://outsideoftheclassroom.com/club

The best strategy for paying off student loans? Make the effort part of an overall financial strategy.Paying off student loan debt feels a lot like indentured servitude. But the freedom enjoyed upon release is worth the effort to accelerate it. Many well presented on this question suggest that Plan “A” is the best way forward. I would agree and so would a number of financial planners.First establish an Emergency Fund so that you are less likely to fall dependent on debt for those unforeseen events that always seem to come.Making your student debt relief effort part of an overall financial strategy will provide long-term financial vision and motivation. https://www.daveramsey.com/baby-steps fits nicely into your current circumstances and provides a step by step means to financial success.Dave Ramsey’s 7 Baby Steps are: https://www.daveramsey.com/baby-steps/1 https://www.daveramsey.com/baby-steps/2 https://www.daveramsey.com/baby-steps/3 Invest 15% College Savings (if children) to help reduce their debt burden! Pay off Home Give It’s not rocket science, and provides a framework from which to live and avoid the same trap that student loans create.DaveRamsey .com provides numerous resources including great ideas on how to pay off debt with the https://www.daveramsey.com/blog/get-out-of-debt-with-the-debt-snowball-plan/and a free budgeting tool called https://www.everydollar.com/index.html?ectid=gaw.everydollar4-rlsaThere are other financial planning tools and advice available. Some are excellent and will help establish a lifetime of financial freedom. Avail yourself of the tools and resources available, check out Ramsey as one of them and set your sights for the long-term.Thanks for the A2A. Best of luck to you!

You will need a plan to increase your income and decrease your expenses.Then use the difference to pay down debt.  The plan that we used was in Dave Ramsey's http://amzn.to/1lFzZVY (affiliate link) to pay off over $60,000 in student loans and another $50,000 in consumer debt. This book will also help you address your need to save. It's a truly comprehensive plan. Also, if you are interested in more information about budgeting, etc. I have also written a book on the subject of paying down debt and increasing income. It might be helpful (affiliate link)-  http://amzn.to/1IbLI3b Hope this helps!

Wanted to add here that http://Tuition.io has now engineered a way for employers to contribute to their employees' student loans as a monthly benefit. (You can read about it http://www.nytimes.com/aponline/2016/01/13/us/ap-us-on-the-money-employers-student-loans-.html?partner=IFTTT&_r=1 and http://www.bloomberg.com/news/articles/2015-12-08/the-hot-new-company-benefit-student-debt-repayment?utm_content=buffer603d2&utm_medium=social&utm_source=linkedin.com&utm_campaign=buffer). (Full disclosure - I work for http://Tuition.io)If you ask about it at work, they might decide to offer it and help you pay down your loans.

It's good to have a small fund available for emergencies, so build this first, while paying the required loan payments.Once you have a small fund (think ~$1,000 or so), put all of your energy and cash into paying down the debt. Sell things if you have extra things you don't need, take on a second job if your situation allows it, and plow through the debt.Once you have the student loans (as well as any consumer debt you might have - cars, credit cards, etc) knocked out, build a solid emergency fund of 3–6 months of living expenses.Now you're in charge of your money since a large chunk of it is not already spoken for each month to service debt, and you have enough money on hand to cover your expenses in the event of a job loss, and if your car’s transmission unexpectedly fails, for example, you won't be forced to take on debt (credit cards, etc) to get back on the road.