One of the easiest ways to start getting student loan help to pay off student loans is to refinance your loan so that you combine it into one low monthly payment. Repayment options on paying back student loans offer you the opportunity to pay back loans based on your financial situation at the time.

Ways to Save

Student loan help will be most effective when combined with smart saving strategies. Here we'll discuss several strategies to help you save money and pay off student loans faster.

Simple Saving Strategies

Most of our visitors looking for student loan help complain that they just don't have room in their budget to save on a regular basis. Once you get help with your student loans, however, you will have more flexibility in your budget and should be able to make saving a priority. Try to follow what is called the 70-20-10 rule: spend 70% of your income on living expenses (rent, food, insurance, etc.), save 20%, and devote 10% to debts, such as credit cards, student loans, and so on. The 20% of your income that you save should be broken down into the following categories:

  • Put 5% into an emergency rainy day fund. To be safe, you should have 3-6 months of living expenses saved. Don't tap into your rainy day fund unless you have a truly urgent expense, such as healthcare costs, car maintenance, or unemployment.
  • Devote 5% of your savings to specific goals. You might be saving to go back to school, buy a new car, make a down payment on a house, or take a nice vacation. Regularly apply 5% of your income toward goal-related savings.
  • Invest 10% of your savings. Use the remainder of your savings to plan for retirement. Invest in an IRA, 401(k), or other retirement account.

Tax Breaks

If you are repaying student loans or are still in school, you may qualify for valuable tax deductions. After you receive student loan help and begin making payments on your education debts, you will most likely be eligible to deduct the interest of your loans on your income taxes. Your lender or lenders can tell you how much interest you paid for the past tax year. Alternatively, if you're still in school, you could qualify for the Lifetime Learning Credit or the Hope credit. To be eligible for the Hope Credit, you must be pursuing a degree and have at least half-time student status. The maximum for this credit is $1500, and you can only make the deduction for the first two years you are in school. On the other hand, you can take the Lifetime Learning Credit every year you are in school, and you do not have to be a degree-seeking student in order to qualify. The maximum Lifetime Learning Credit is $1,000 annually. To deduct education and student-loan related expenses on your taxes, you'll need the following information:

  • The sum of your education expenses (tuition, fees, textbooks, etc.)
  • The interest expenses you paid on your student loans
  • Enrollment verification (for those still in school)
  • Bank accounts information and receipts for school-related expenses