Create a 3- to 5-year plan
Clayton Shearer, a wealth manager at A&I Financial Services in Englewood, Colorado, urges clients to create a three- to five-year plan to pare college debt.
Knowing exactly when the loan ends is comforting for many clients. Clients "have a goal in place, they're committed to it and they know exactly what to pay monthly," Shearer says.
For example, two clients had $50,000 combined in college debt and were making around $100,000 a year jointly. To pay it off, they established a budget and cut back on spending. Their budget was helped by two sizable bonuses from work, resulting in their sending $800 per month for two years to cancel their college debt. Had they not prepaid, it would have taken about 15 years to pay off the loan.