When paying off student debt, it is vital to prioritize financial goals. Paying down student loans are often not a priority over tackling credit card, medical, and auto debt.

Our goal is to help those with student debt find a repayment plan that fits into their current financial situation. There are four ways to optimize student loan repayment plans to improve an employee’s financial wellness.

#1: Reduce Monthly Student Loan Bills

If a person is struggling to repay monthly bills, reducing their student loan can free up funds to pay back higher-interest debt, typically credit card debt. Credit cards are particularly notorious for tacking on massive amounts of interest each month.

IonTuition places twice the rate of borrowers into income-driven repayment plans as federal student loan servicers. Employees can easily see how much money they can save each month.

#2: Repay Student Loan Debt Faster

Those able to overpay their student loan debt each month, whether through employer-provided contributions or extra income, can save time and total interest on their student loan debt. Our counselors can help employees determine which student loans to repay first to save the most money over time. An extra $50 per month can mean thousands saved in interest and years shaved off of their repayment.

#3: Defer Student Loan Payments

Student loan payments can be deferred during times of financial hardship. If a spouse loses their job, or if the family faces an unexpected medical debt, student loan payments can be deferred or placed into interest-only repayment. This can give employees a couple of months to get ahead of their debt.

#4: Reduce Student Loan Interest Rates

Finally, we can improve a borrower’s student loan repayment by reducing their interest rate and consolidating payments through refinancing. Student loan refinancing is helpful to those with solid credit scores. A lower interest rate can reduce total interest paid, making it easier for employees to make extra payments.

Reach Out To IonTuition

If you are interested in learning more about what we offer at IonTuition, reach out anytime. We are passionate about assisting companies who hope to offer student loan assistance to their employees. This incredible benefit goes a long way in easing the burden of student debt, as well as in providing resources needed to make solid financial decisions going forward.