Hopefully we were able to help you get forgiveness on your student loans. If you were told that we cannot get you forgiveness on your loans, there are other strategies that can reduce your monthly payment if your financial goals are to save for buying a house, pay off other debt, or save for retirement. Many people choose these strategies as student loan interest rates are usually lower than how much people can gain in investments and debt payoff. If that is something you are interested in, please schedule a consultation here.
These are some other strategies we’ve had clients use to pay off their student loans as fast as possible.
Get A Side Hustle: A side hustle is a great way to make extra money in addition to your full-time job. Some people get second jobs delivering pizza or working at a warehouse, while other people sell items around their home online. I have a friend who worked a side hustle and paid off $30,000 in student loans in 2 years just by working an extra 10 hours a week at a warehouse. There is a great blog named Budgets Are Sexy that offers an amazing side hustle series to spark some ideas. Check it out! https://www.budgetsaresexy.com/ways-to-make-money/
Use “Found” Money: We all have times in life where money shows up unexpectedly. If you got a bonus from work, money back on your tax return, or even won money on a scratch ticket, you can use that money to pay off your student loans faster. There are little tricks to create found money as well. For example, I accumulated a ton of coins that I would never actually use from spending cash whenever possible and storing the change in a piggy bank. Every few months I would turn in my piggy bank and use that to pay off my student loans. You would be surprised at how fast change adds up. For me, it was about an extra $500 a year! There are apps where you can employ a similar strategy for when you use your debit card. For instance, you can set a rule so that when you spend money, it rounds up to the next dollar and that extra money goes to pay off debt. Check out apps like Simple, Quapital, and Digit.
Make Biweekly Payments: This is a strategy many people use to pay off their mortgage early. By paying biweekly instead of once a month you take advantage of the calendar and end up making an extra payment every year without even thinking about it. Use this biweekly student loan repayment calculator to see how this strategy may help you.
Make Extra Payments (but make sure you do it right!):
Often times, student loan servicers will take extra money and apply it to next month’s payment. You don’t want that! If you make extra payments to your student loans, let your servicer know that you want that payment applied to your principle balance.
Enroll in Auto Pay:
Many servicers offer an interest rate discount if you are enrolled in autopay. It’s not a lot, but every dollar counts!
Check With Your Employer:
Offering student loan repayment as an employee benefit has become incredibly popular over the past few years and continues to grow. Check out this list of employers that are offering student loan repayment as a benefit. However, check with your employer’s HR Department as well to see if they offer help for repaying your student loans or have other programs you can take advantage of to help you with your loans.