Paying back big loans from school can feel like a huge weight. The never-ending cycle of monthly payments draining your paycheck repeatedly. But what if there were new ways to get rid of that debt faster?
Thinking in a new way allows you to make more money for loan payments. Why only follow the standard repayment track given by lenders? There are so many overlooked chances to put extra cash towards loans.
Keeping an open mind unlocks unique solutions just for your situation. Escaping the burden of student debt requires an untraditional, go-getter approach.
Side Hustles and Gig Economy
Having big student loans hanging over your head can feel worrying. Side gigs and jobs in the gig economy can help.
Side Gigs Mean More Money
A side gig is a little job you do on the side. It lets you earn more money in your free time slots. That extra income can go straight towards paying off loans faster. Side gigs are flexible - you pick when and how much to work. The money you make from side hustles is yours to keep.
Gig Economy Job Options
- Driving for ride-share apps like Uber
- Running errands or tasks on apps like TaskRabbit
- Selling hand-made crafts or services on sites like Etsy
- Renting out an extra room or space on Airbnb
Jobs in the gig economy are perfect for making loan payments! Every penny earned goes straight to paying down those loans.
Two Income Streams
For a real power move, combine side gigs with employer tuition aid! Your main job helps tackle loans, while side hustles add even more money. Having both these income sources lets you demolish student debt lightning fast.
Getting Tuition Aid From Your Employer
Lots of great employers these days offer tuition assistance benefits. This means they'll help pay back a portion of your loans! Jobs like teaching, nursing, and government work often include this perk.
Reasons To Seek Out Tuition Assistance
- Your employer pays some of your loan amount directly
- The payments made are tax-free money for you
- The benefit usually kicks in after 6 months of work
- Having your job help pay a debt is such a relief!
Finding a position with an employer tuition assistance program is wise. That workplace benefit channels extra funds towards your loan balance regularly. Less debt equals more savings for future goals like buying a home!
Volunteer Work and Loan Forgiveness
Having lots of student loans weighing you down can feel tough. But a neat option is looking into volunteer work - it can eliminate your debt! Certain organisations offer fantastic loan forgiveness programs if you volunteer.
How Volunteering Helps Erase Loans?
Many organisations need volunteers and value community service very highly. They have special programs for forgiving all or part of your student loans to reward this. After volunteering for a set period, like two years full-time, they'll pay off your remaining loans.
Negotiating Your Loan Terms If On Benefits
If you get some loans like loans for people on benefits, lenders must follow aid rules. You may be able to lower or even put your monthly payments on hold. Talk to your lender, explain your situation, and get their assistance options. Lenders have to work with you on more affordable repayment plans.
Tips For Negotiating Better Loan Terms
- Gather proof of income level and benefits received
- Calculate accurately what you can reasonably afford
- Explain financial hardships impacting your ability to pay
- Ask about income-based repayment plans and options
Don't just accept loan terms that are overly burdensome if on assistance. Lenders have to consider your circumstances and inability to pay high amounts. Advocating firmly but politely can lead to a much more manageable payment plan. Volunteering is an amazing way to progress towards loan forgiveness. Loans for people on benefits, you have the right to seek out better terms.
Renting Out Space or Property
Do you have an extra room or a separate small space just sitting empty? Why not rent it out and earn yourself some sweet income? That extra money can go straight towards paying off student loans.
Renting out part of your home or property is super smart. You make use of unutilized space and bring in a nice flow of cash. It's like giving yourself a raise without even getting a new job!
Tips For Renting Out Space
- List your rental on sites like Airbnb, Vrbo, etc.
- Thoroughly screen potential tenants for security and peace of mind
- Set clear rental rules like no smoking or parties
- Keep your rental space clean and well-maintained for good reviews
Becoming a landlord can seem daunting, but rental platforms simplify it greatly. They handle bookings and payments and provide hosting advice for beginners. With some basic effort, you can easily rent out your space profitably.
Budget Optimization and Expense Reduction
Making a budget and cutting needless costs is key for loan repayment. First, track your monthly income and all regular expenses carefully.
With that clarity, you can confidently plan out affordable loan payments. Next, optimise that budget by trimming any unnecessary spending. The less frivolous costs, the better! Dedicate as much as possible each month towards making loan payments.
Budget Boost Tips:
- Cook affordable meals instead of frequent restaurant dining
- Find free entertainment instead of paying for movies, events
- Cut cable subscriptions you don't need or use
Getting serious about budgeting puts you in control of your money. You can purposely allocate funds towards quickly eliminating those student loans.
Small spending adjustments here and there add up to huge savings over time. The sooner you become a lean, mean, budgeting machine, the sooner debt freedom! Make a smart, affordable budget and stick to it diligently.
Conclusion
We looked at side jobs, gig work, volunteering, freelancing, and many more. All these fresh income ideas speed up repaying student loans rapidly. They create extra earnings purposely directed at eliminating that debt.
For those getting government assistance, asking for better loan repayment terms is smart. Lenders must legally provide affordable, income-based plans for such loans if requested.
Get creative, take action, and use whichever alternative strategies work best for you, as the path to financial freedom begins by thoroughly exploring your fresh options. An open mindset revolutionises how quickly you can unload that debt weight.
