It’s not enough to call student debt bubble just a crisis. Many people are struggling to pay off their student loans and quite often this debt prevents them from buying own property and event starting a family.
Really, it’s hard to start doing something for yourself and for your career when you have a massive debt. Some people even apply to direct lenders to pay the rent and monthly bills.
But there’s a way out of every complicated situation! There are ways which can help you to repay your student loan before 30’s. Take your time and learn them to become financially independent.
Basically, we can divide your actions into two categories. So, the first category would be you getting someone’s help. The second one is the set of actions you can do yourself.
Refinancing and Loan Elimination Programs
You can enjoy refinancing to a lower interest rate. It will make your monthly payments lower. In case you can afford to make previous monthly payments (which you had before refinancing), you’ll pay your student loan faster. But it’s worth keeping in mind that this option is available for you if you have a job and a good credit score.
Plus, there’s an online company called LendKey. It helps consolidate and refinance your student loans. When turning to them, you get a chance to reduce your interest rate and lower your monthly payments. As a top bonus, you save thousands over the lifetime of your student loans.
Set Right Priorities
Do you think that such things like a vacation on the islands, buying a new car, and designer clothing can make you happy? Think twice. Don’t compare yourself to others and understand what is important to you. Every big purchase prevents you from paying down the debt. Always choose a long-term goal instead of short-term happiness.
Create a Detailed Debt Elimination Plan
Such online resources like Mint and LearnVest help people repay their debts. They provide an opportunity to create loan repayment plan. It’s important to count how much money you make and how much you spend. When you control your money, you can 100% understand a current financial situation and think how you can increase your loan payments.
Save on Your Rent
Rent is a significant monthly expense so it’s important to know how you can cut it. The best thing is to find a way how you can skip paying rent. For example, live with your parents or relatives where you don’t have to pay. Maybe it’s not what you want at your age, but imagine how much money you can invest in your student loan debt elimination!
Boost Your Income
The more money you make the more you can use to repay your student loan. That’s why the task is to increase your revenue and get a second job. Take a look at these 10 ways to make quick money, get a part-time job and do your best to make as much as possible. Remember that every dollar is significant when you need to get out of debt.
Get a Job at Government Organization
Find any kind of government organization – local, state or a federal one and try to get a job there. This will give you a chance use Public Service Loan Forgiveness Program which pays the balance on your federal student loans. But to get into this program, you have to make 120 eliminatory monthly payments first.
Talk to Your Employer
It’s not worth thinking that when you’ll come with such conversation, your employer will not take it seriously. Some firms and organizations help their employees dealing with college debt. They offer loan elimination programs. Also, try to negotiate other opportunities. For example, making student loan payments a part of your compensation.