Even though your private student loan seemed like the best idea when you were pursuing a degree, now it might feel like an unbearable burden. If you are struggling to pay your student loans, here are some options to make paying back easier.
If you didn't get the job or the income you were hoping for after graduation paying back your student loan may seem like an almost impossible chore. Private student loans add an extra layer of difficulty, for they have much less flexibility and don’t offer various repayment programs as federal student loans do.
However, defaulting on your student loans is not an option for it not only hurts your credit score but can lead to calls from collection agencies and having your wages seized. Here is some advice you will find helpful if this is your case.
1. Refinance your loans
Get quotes from private student loan lenders to see if you can obtain a lower interest rate. Even lowering it only 1% can save you thousands over the life of your loan.
If this is not possible, you can refinance your student loans to a longer-term. This can decrease your monthly payment but will mean that you are paying more overall, so it is important that you consider the long-term effects of doing this, before you sign.
2. Look for jobs with student loan repayment perks
Many companies are starting to offer student loan repayment options as an employee benefit.
3. Set up a new budget
If your current budget doesn’t help you have enough money to pay for your loan, it’s time to think of a new one that enables you to reach your financial goals (including this payment).
4. Find an on-the-side job
If you can't increase your income through your regular paycheck, try earning money on the side. There are unlimited options that you can choose from that go from driving for Uber to having a freelance job like proofreading, graphic design, or selling hand made stuff on Etsy. It all depends on what you enjoy doing most.
5. Sell unused items
Tidy your house and closet and find everything you don't need or want anymore. You can sell smaller, valuable ítems on eBay. larger items that are difficult to ship on Craigslist or Offerup or you can set up a garage sale on the weekend.