If you are like me (and most millennials), you left school with massive student loan debt. Feel like you’re never going to pay them off? Student loans are no joke, and are a huge issue for our generation. I wrote about this in a post called the Curse of the Millennial Student Loan Syndrome. Below are 8 student loan elimination strategies.

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Student Loan Elimination Strategy 1
Get serious about eliminating student loans
Get serious about paying back student loans, and make more than the minimum monthly payment.
Loans SUCK and can haunt you for decades. I know it’s tough, but you need to make the decision to bite the bullet and get serious about paying off student loans. The first step to success is admitting you have a student loan problem.

The fastest way to pay off your loans, and reduce the over cost of interest, is to make more than your monthly minimum payments. If you are already paying back your loans, you will see an option to add an additional amount to the principal.

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We recommend setting up monthly payments, with an additional amount added in that goes to the principal each month, automatically. Even if you can only afford an extra $20-50, it will benefit in the long run.

Student Loan Elimination Strategy 2
Eliminate Student Loans

Stop avoiding looking into your repayment details.
Do the math and figure out how long it will take you to pay off your loans. What is the exact date? Do you seriously want to be paying monthly student loan bills until this date? Understanding the details of your loan will help you confront the problem. Your debt. Mark this date on your calendar, and then see if you can beat it. Paying down your principal and reducing your repayment time period will save you SO MUCH MONEY in the long run.

Student Loan Elimination Strategy 3
Student Loan Elimination

Be budget conscience. Trim the fat!
I strongly recommend taking a step back to look at your financial picture and cash flow. What are your assets, what are your liabilities? What is your net worth? Are your student loans your largest liability? What else are you spending your money on?

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Our generation has extremely powerful financial analysis tools at our fingertips that others did not have before us. Using the free tools from Personal Capital, you can really dive into the details which will expose areas of waste (places where you can cut back on spending to increase student loan payments)

If you saving cash in excess above a typical 3 month safety net, you may consider shifting that saving to reduce your loan principal. Similarly, if you are going out 5 nights a week, try cutting back by a few nights and put that amount towards your loans.

Student Loan Elimination Strategy 4
Student Loan Elimination

Make payments every two weeks, instead of monthly
By splitting your monthly payments in half, and setting your automatic payment option to that amount every two weeks, you will make one full extra payment each year. It’s basic math. If you receive bi-monthly paychecks, you will likely not even notice the pain of paying the extra amount each year. I still recommend adding anything you can to the principal each payment.

Student Loan Elimination Strategy 5
Eliminate Student Loans

Student loan interest tax deductions (and refunds!)
If you are currently paying back student loans, you are also paying a lot in interest each payment. The amount of money that you spend on interest each year is likely eligible for student loan interest deductions on your federal taxes.

Currently, you can deduct up to $2,500 of interest payments on your taxes each year. Consult your tax professional, but typically, people in their 20s and 30s will meet the requirements. Even if you take the standard deduction, you can also deduct this student loan interest.

If you are lucky enough to receive a tax return refund, I strongly recommend putting it towards any high interest liabilities such as student loans!

Student Loan Elimination Strategy 6
Student Loan Elimination

Get a raise this year? Apply it to your loans!
If you are employed and receive annual salary raises/adjustments, consider putting the net increase/pay period towards your loan principal.

More often than not, millennials with massive student loan debt tend to apply their raises to something material or an adventure. It is important to balance your quality of life, however, it is equally important to think about your wants vs. your needs.

You can increase your automatic payments after your raise, and then set back and watch your principal red extra amount each year.

Student Loan Elimination Strategy 7
Side Hustle
Get your side hustle in gear
If you are having a hard time paying amounts on top of your monthly bill, or struggling making the payments, you need to make more money.

The best way to increase your salary is to work overtime, earn a promotion, or take a job similar to your current one, but with more responsibility. If changing jobs is not in the picture, you can find a way to side-hustle. In fact, the majority of us millennials supplement our income with a side gig.

There are soooo many side hustles out there. You can delivery food, drive for uber, photograph weddings, walk dogs, sell items around the house, tutor, write a blog etc. Make sure you align this side hustle with your passions (so that it is fun!).

Whatever you decide to do to supplement your income, try and be disciplined and put it all towards your student loans.

Student Loan Elimination Strategy 8
Financial Picture

Coming into some money? Direct it to your loans
If you are lucky enough to receive a cash windfall (gifts, inheritances, lottery winnings, tax refund, etc.) make sure to make responsible financial decisions. It is so tempting to spend each windfall on your wants instead of needs. You need to pay off your liabilities. Your future you will thank you! Try and divert as much of the cash windfall as you can to your student loans!