Savvy Spending: Cutting Back on Buying Coffee Could Lower Student Debt

Students may be curious about how they can not only pay the interest on their student loans, but how they can also pay down their student loans faster. 

After a student loan’s grace period is over, it goes into a Standard Repayment Plan. This is the standard plan each student uses to pay their loan off in 10 years. The Standard Repayment Plan creates a fixed payment amount based off of your total amount of loan debt and repayment term for 10 years. 

Most people stick to the Standard Repayment Plan; however, there are many students interested in paying their loans off early. By paying a little more each month, you can cut down the total time you will be paying back your loan, and end up paying back less interest over time.

Interested in seeing how much you will need to pay each month to pay off in a shorter time period? Try checking out a student loan calculator to estimate how much you could potentially save by paying off your loan in a shorter amount of time. For example, try using the calculator from CNN Money. This particular calculator allows you to put in your loan amount, desired monthly payment and your interest rate. The calculator then informs you how much your payoff period would be along with your interest paid over that time.

So, how do you find the money to pay off your student loans faster? One way is to start by brewing your own coffee at home. It can save you hundreds of dollars, and according to a survey conducted by Braun Research on behalf of Accounting Principles; half of Americans choose to buy their coffee at work every day, which costs about $20 a week and nearly $1,000 a year. Think of the savings you’d have by simply brewing your own coffee. 

There are also many other perks to brewing your own coffee. You may actually start to enjoy your mornings more by relaxing and drinking your morning java, instead of waiting in lines, dealing with additional traffic and furthering your commute daily to grab your cup of coffee on the way to work. 

In addition, you are making an environmental friendly decision by using your own coffee cup instead of a disposable cup each morning. Can’t imagine not having your favorite brew of coffee each morning?  Many chain coffee shops sell their coffee to your local grocery so you can still enjoy the same coffee at home.

So dust off that old coffee maker and start brewing your own coffee. You’ll be surprised how much you’ll save while also making a conscious environmental decision and enjoying a peaceful sans-line morning.

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Lindsey Sudia is a Student Financial Advisor for Rasmussen College. She has worked in the field of Student Financial Advisement for one year. Lindsey graduated from the University of Missouri with a B.A. in Communications. Lauren Ramirez is a Program Coordinator for the Medical Assisting Program at Rasmussen College in Tampa/Brandon. She has worked in the field of Medical Assisting for more than four years and has been instructing Medical Assisting for more than two years. Lauren also has a B.S in Biomedical Sciences from the University of South Florida. Lauren is an active member in the community leading and volunteering charity walks and runs, and she is also an active member of American Medical Technologists.

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