Student loan debt is crushing the long-term dreams of many millennials. Thanks to this debt, they are delaying milestones such as purchasing a home, getting married and starting families. This debt is also causing many young adults to remain at home with their parents. To make matters worse, a large majority of college graduates are not able to secure employment in the fields they studied for. As a result, they are at jobs that do not pay enough to help millennials repay the student loan debt. But you can gradually pay it off and here are some ways to do it.
Consolidate Your Student Loans
A benefit of consolidation loans is that you can lump all of your previous student loans into one new loan. Consolidation loans also often come with a lower interest rate so this makes it easier to manage payments each month. This is also a great choice if you intend to pay off the debt as quickly as possible.
Look into Public Service Loan Forgiveness
The U.S. Department of Education has an option for loan forgiveness if you work in the public service sector. These kinds of jobs include teaching, social work, law enforcement, any kind of government work, and the non-profit sector. You must also have federal student loans in order to qualify. You must have made 120 payments consecutively. Check out this resource page for additional information.
Pay More Than the Minimum Balance
If you want to speed up the repayment process, you should pay more than the minimum balance whenever you can. By doing this, you're paying off both the interest and principal that you owe on the loans. You can seek out ways to earn extra income so that you'll be able to do this.
Do the Side Hustle
Side hustles are great for getting out of student loan debt because you can do what you love and earn money for it. If you love crafting, you can sell handmade goodies on websites such as Etsy and Amazon Handmade. Other good jobs include blogging, graphic design, virtual assistant and call center jobs with major companies.
Downsize Your Lifestyle
Cut out any unnecessary expenses so that you can put more income towards the student loan debt. Maybe you can live with your parents until you find an affordable apartment. Cook more meals at home instead of going out. Buy outfits from thrift stores to save money.
In conclusion, it might seem impossible to pay down student loan debt, but with hard work and determination, you can reach your goal.
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