If you're dealing with student loan debt, you may find that it is presenting challenges to your day-to-day life. Like any debt, it can put a strain on your finances and lead to overall stress. Know that you have options that can help you deal with the burden of student loans.
1. Assess Your Total Debt Load
For most people, a student loan is only one of the debts they have. Take some time to write down information on all the loans you have: auto loans, credit cards, installment loans, etc. Then prioritize which ones to pay off first, usually the ones with the highest interest rate. The internet has many online tools to help you decide the best way to do this. Create a plan to get the loans paid off and stick to it.
If you have numerous bills to pay each month and have trouble juggling them all, one option is to get a personal loan (1) that lets you consolidate your debts. Talk to your bank to see if you can qualify for one. This may be worth doing to get one monthly payment with a lower interest rate.
2. Make Timely Payments
Always make your student loan payments on time. Otherwise, you risk accruing late fees, which will make the loan more difficult to pay off.
3. Get a Side Gig
If keeping up with your student loan payments and other bills is cumbersome, it might be worthwhile to look into finding a secondary source of income. Side gigs have become extremely common as Americans look for ways to deal with the economic strain of the past few years.
Whether you get a traditional second job or start a side hustle working for yourself, a new stream of income can make a big difference in getting yourself out of debt. You might even be able to dedicate your side gig's paychecks strictly to paying off debt and get yourself on track sooner rather than later.
4. Watch for Relief Opportunities
Student loan forgiveness by the executive branch of government and review by the Supreme Court has been a big topic in the national news lately, and at this point, it's difficult to say exactly what will come of it. Keep an eye on related news, and research potential opportunities that you might be able to take advantage of to aid your debt repayment. Set up a news alert on the topic so you can stay apprised of the latest news. You can also talk to your lender to see if they have any information to offer.
5. Look Into Refinancing
If you're having trouble with your student loan payments each month, another option is to look into refinancing your loan. This is another reason to speak with your lender. Keep an eye on interest rates and look for a time when you might be able to get a new loan with a better interest rate and a lower monthly payment.
6. Use Your Home Equity
If you own your home rather than rent, one more option is to take advantage of your home equity through a home equity line of credit. (1) This puts your home equity to work, and can be used for a variety of purposes, including debt consolidation, home improvements, or even to take care of education-related expenses.
Student loan debt can make life difficult, particularly if you don’t have a high-paying job. But you can try to make it manageable. You have options, so talk to someone at your bank to figure out which one is right for you.
1. Subject to credit approval. Terms and conditions apply. See a banker for details.