Smart Student Loan Repayment Tips for 2024

enero 04, 2024

Navigating student loan debt may make it difficult save and qualify for other types of financing, but 2024 brings new opportunities to ensure you're on the right track towards financial freedom! Whether you're a recent graduate or have been paying off your loan for years, here are tips and resources improve your debt management strategy in the new year.

Revisit your budget

With the new year comes the perfect opportunity to reassess your budget. This allows you to realign your financial goals and priorities. Start by examining your current income and expenses, then identify areas where you can cut unnecessary costs. Integrating your student loan payments into your revised budget is essential for a clear financial picture.

Read: Budgeting with Student Loans

Prioritize your credit score

It may be tempting to take on new debt like new lines of credit or other types of loans, but if you're struggling to make minimum payments on your existing debts, stick to your current credit limit. While there are many factors that go into determining your credit score, timely payments have the greatest impact. Maintaining a good credit score is more than just a number; it's your ticket to potentially better interest rates, especially if you're considering refinancing your loans.

Consult a Student Loan Debt Counselor for personalized advice.

Deduct interest paid

Did you know you can potentially lower your tax bill by deducting up to $2,500 of student loan interest each year? With tax season just around the corner, it's a smart move to include any interest paid on your student loans in your tax deductions*.

Learn More: IRS Guidelines on Student Loan Interest Deduction

Explore repayment and forgiveness programs

Federal income-driven repayment or forgiveness programs** can be a game-changer in reducing your debt burden if you qualify. If you're juggling multiple student loans, consider exploring options like a Direct Consolidation Loan for a fixed interest rate and potentially longer repayment terms.

What to Expect

After the Supreme Court struck down Biden's initial federal student loan forgiveness plan, he announced the development of a revised program. Keep an eye out for new developments sometime in May.

Resources for Student Loan Borrowers

Use our free tools to successfully navigate student loan repayment!

  • Financial Focu$: Financial literacy courses on budgeting, debt management, and student loans.
  • Student Loan Debt Counseling: Speak to a financial counselor to understand your repayment options and receive guidance on repayment.
  • LearningLab+: Interactive modules on prioritizing expenses, redesigning financial habits, and more!
*USC Credit Union and its Representatives do not provide tax or legal advice. For such advice, please consult with a qualified professional. **Any products and services through this link are not provided or guaranteed by USC Credit Union. The site you are about to visit may have a privacy policy that is different than USC Credit Union’s. Please review their privacy policy. USC Credit Union does not endorse the content contained in these sites, nor the organizations publishing those sites, and hereby disclaims any responsibility for such content.