Brace yourselves…student loan repayments are coming. 👿 After what seemed like an endless brawl for it all, the government is finally turning the faucet back on. 🚰
Worried about how to handle or how to pay? You're not alone in that boat. 🚢 Here are some tips to help your ship stay afloat. 🛟
Here’s Five Fast Facts on how to pay off your student loans:
- 🙅 It's a No for Me, Dawg - The first thing to do is take a look at your payments and determine whether or not you can *truly* afford them. Hating them isn't a good enough reason. If you can't afford the monthly amount, it might make sense to refinance your loan to a lower interest rate before payments kick back in. You can also use this loan simulator to see if you qualify for a lower rate.
- On the Side - Look into the government's other loan forgiveness and debt relief options. For example, if you're a teacher or served in the military, you might be eligible for certain programs. You can also have them reassess your income levels. If you're making less than you were when you first began repayment or expanded your family, you might get some breathing room.
- State Your Case - Outside of the federal programs, states also have their own student loan forgiveness programs. Check your state and local government websites for more details. Also, make sure you take advantage of any student loan benefits from your employer. Some places match employee payments or offer money towards paying the loans off.
- Put a Dent in It - If you have some cash on the sidelines, consider putting it towards your loan before repayments begin. While in the pause period, there's 0% interest and 100% of your payments go towards your principal. This could shave off a nice chunk of your loan and put you in a better position.
- Do the Hustle - We know we say this a lot, but picking up a side hustle is a great way to bring in extra cash if you have the time. A side gig can help you erase your debt way sooner. Oh, and at the risk of sounding like your mom, watch your spending and don't splurge on stuff you don't need.
🔥Bottom line: What shouldn't you do? Put your student loan payments on a credit card. Credit cards often have way higher interest rates than your loans do, which sets you up for a crap-tastic situation down the road. Also look out for scammers who ask for money in exchange for loan forgiveness or cancellation. They're 101% totally bogus. While you're in a prepping mood, have a look at this article on how to prepare for an economic crisis.
What's your game plan for tackling student loan debt?
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