How to make money from your student loan debt

But make sure you choose a student loan repayment plan that you can afford. For many young people today, student loan debt is just part of the college experience — one that often follows them for a decade or more after graduation. With a little bit of effort, your student loans will be gone before you know it. These are just a few unique ways to make extra money to pay down your student loan debt faster.

$40,000 later, my best advice applies to any debt-repayment strategy

That makes their total debt high how to make money from your student loan debt to their income — a red flag for lenders. For others, like Cyndi and Rick Blalock of St. But with six-figure incomes and no kids, the couple was still able to purchase a home in through Health Care Family Credit Union, which offers mortgages specifically for healthcare professionals. Here are five ways to get started. Income-driven repayment plans are one of several solutions the government offers federal student loan borrowers who are struggling with debt. These arrangements — which include income-based repayment, Pay As You Earn and the Revised Pay As You Earn plans — allow qualifying borrowers to cap their payments at a percentage of their income, and have their remaining debt forgiven after 20 or 25 years of payments. The couple has to reapply for the plan every year, and if their income increases, they may have to start making monthly payments.

2. Make Bi-Weekly Payments (as opposed to monthly)

how to make money from your student loan debt
Dealing with your student loans can seem like an overwhelming task. The sheer volume of student loan debt that we are dealing with is astronomical. You might think that your loans are going to be attached to your financial future like a lead weight, but that does not have to be the case. You have the option to be proactive and work to get rid of that crushing debt fast. It could be a difficult journey, but we have some ideas to help you get rid of your student loan debt fast!

1. Assess the details of your student loan debt

Dealing with your student loans can seem like an overwhelming task. The sheer volume of student loan debt that we are dealing with is astronomical. You might think that your loans are going to be attached to your financial future like a lead weight, but that does not have to be the case. You have the option to be proactive and work to get rid of that crushing debt fast.

It could be a how to make money from your student loan debt journey, but we have some ideas to help you get rid of your student loan debt fast! Although these tips may not help your debt disappear overnight, you should be able to form a solid plan that will have your student loan debt gone in no time!

It is likely that you have multiple student loans. You may even have both federal and private student loans. Each of these may have their own payment amount and due date each month. Understandably, it can get very confusing to keep track of all your student loans. Take a look at all drbt your loans. Seeing the individual loans all in one place will help you to see exactly how much you owe.

It sounds so simple, but knowing more about your debt will be helpful. The more mpney know about the individual loans, the more effectively you will be able to makke rid of it. It could be a good idea to consolidate your loans because even just one or two missed payments could seriously affect your credit score!

You likely want to keep your credit score as high as possible throughout this whole process, consolidation will help make it easier to keep track of things. Consolidation will help to organize your finances, which is good practice for all areas of your financial life. Setting up an auto payment is super easy to. You will have the option to youe that through your loan company. You do not want to forget to make a payment because it could severely impact your credit score.

Why take the chance that you will forget? You might as well sign up for Auto-Pay, if only for your peace of mind. You have the option to refinance your student loans if the loans were private. It is a fast track option to getting rid of your debt because it will help save you potentially thousands of dollars in interest over the lifetime of your loan.

In addition to a lower interest rate, the refinancing will also give you a lower monthly payment. Both of these benefits are amazing! While it may be tempting to simply start paying the lower option, I recommend that you continue to pay the same amount every month. By making this higher payment, you could be cutting years off your loan. Those years translate into dollars saved! As you are searching for a lower interest rate, consider adding a co-signer to help get a lower rate. You may be surprised at the ddebt between the rates.

Another good feature of refinancing your loans is that you may be ho to consolidate your separate loans into one payment plan. Simplifying your payments may be helpful for you.

Most of these platforms will match you vrom companies that will only be able to help refinance your loan if you have a stable job with a good credit history.

Keep that in mind as you are looking through your choices. As you are looking through your refinance options, make sure to choose a short-term length. If you opt for a longer term than you currently have, you may not actually be saving yourself any money on interest in the long run. Refinancing your loans is a good option for some borrowers, but not everyone will benefit from refinancing.

Usually, borrowers with the most to gain from refinancing have private loans. However, if you have federal loans, then refinancing may not be the best move because you would lose your access to loan forgiveness plans and income-driven repayment plans.

Look over your situation carefully before deciding to refinance your student loans. If refinancing sounds like a good option for your situation, then check out some of our favorite student loan refinancing companies:. Credible is an online loan marketplace that will allow you to shop for loans on your time. It will compare lenders and rates for your student loans. The platform will give you personalized rate estimated based on the information you provide. After you have your options, then you will have koan make the final decision about which lender how to make money from your student loan debt to use.

You can easy apply for the refinancing through Credible. It is a free service, so if you are on the fence about trying Credible you really do not have anything to lose. Read our i n-depth Credible review for even more information. LendKey is another online platform that will connect borrowers to credit unions and community banks for loan refinancing.

Through LendKey, you will have the ability to work with a smaller bank or credit union which may be an attractive option for you. In order to work with LendKey, you will need to go through a few extra steps. After you check your interest yur and complete an application, Lend Key will perform a hard credit stuent that could affect your credit score.

If you pass the check, you will be allowed to choose a loan term from the credit unions and banks that you are eligible to work. The process sounds long, but it really will not take that much time. Remember, this move could potentially save you thousands of dollars in the long term through interest savings. SoFi will match your student loans to an appropriate refinancing option, but you will need to have good credit and a stable income to apply. If that is something you want to do, then this is one of the few companies that can help you with.

You might ask why someone would want to do this? If your parents helped pay for your college with loans, then you may feel motivated to help back them back now that you are out of college. By having the loan transferred to your name, you are taking a huge burden away from your parents. As they approach retirement, it will be one less thing for them to worry. The platform is very easy to use and tsudent potentially save you thousands of dollars down the line.

CommonBond was originally founded to refinance student loans and lend money to business students. The company has branched out since then, so you are able to work with them as an undergrad or a non-MBA student. You will be able to compare many different options through the platform. After you make your choice, you will need to complete an application, agree to a hard credit check and wrap up the paperwork.

Remember the hard credit check will affect your credit score, but it may be worth it if you find a good refinancing option. Purefy can help you refinance private, federal and parent PLUS loans. In order to work with Purefy, you will need a good credit scored and have an employment history of at least two years. The loan term options are 5,8,12, and 15 years.

Choose wisely when deciding on a term. Even if you have a lower interest rate, a longer-term lease may end up costing you more money over time.

Look carefully at the options before refinancing. Earnest is a great option for anyone with a strong credit score and a high amount of student loan debt. Another plus is that you will have a choice between fixed and variable interest rates. The decision as to which interest rate will work best for your situation is completely yours.

One drawback to Earnest is that they studnt not allow co-signers, studenh if that is something you are interested in you will need to find another platform. Citizens Bank operates brick and mortar banks as well as through an online platform.

The entire process can be done online, but if you feel more comfortable in-person, hoe you can visit a branch. In addition to refinancing your loan with a lower interest rate, you can also qualify for rate discounts on top of the initial refinancing.

You can save. Most lenders will only refinance the loans if you completed your degree. Citizens Bank will work with you if you did not finish college. If this is your situation, then this may be one of your best options for refinancing. If you have federal student loans, then a forgiveness program may be able to help you out a lot. The loans that would be covered by a forgiveness program are usually administered by the Department of Education, but other student loan companies may also service these loans.

This program is by far the most popular option. The PSLF program encourages graduates to work full time in public service jobs after graduation. The jobs are important to our society, but the pay is usually not as high as a private sector job. The PSLF hopes to balance the high cost of education with a lower post-graduate salary.

If you qualify for the PSLF, then you may qualify to have the entire remaining balance of your loans forgiven. It is really a great program to help any public servant to help get out of student loan debt.

In addition to working in a public service capacity, you will also need to have made qualifying hw on their student loans while working full time at a qualifying institution. So what makes a workplace qualify? The common workplaces include federal, state or local government jobs. Nonprofit organizations c 3 s stufent qualify.

A typical job that would qualify may be a firefighter, law enforcement, public education, public health services, biologist, and many. It ffrom likely that an HR rep will know the exact steps that you need to take for your specific organization.

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