15 Unconventional Ways To Pay off Student Loans
Nearly every student graduates from college owing a loan that may take years to pay off. This financial concern runs constantly in the background when we really just want to get on with our lives.
Many assume that the only way to pay off these loans is to have the creditors deduct a percentage from our salaries. While this remains the primary method of payment, there are ways to clear that loan in less time.
Each of these tips requires a different approach, but they are all designed to help student debt disappear as quickly as possible.
1. Make Extra Payments
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It’s important to understand that your loan repayments are not fixed. If there are times when you have more disposable income, it’s possible to overpay and see the loan cleared in a shorter period.
If you are able to make additional contributions, contact the repayments department to discuss an increased plan.
2. Establish a College Repayment Fund
Saving and budgeting are essential to financial planning; every household should adopt them immediately. Consider opening a separate savings account to divert funds for early repayment of your loan.
Having a specific account for this purpose will help you assess your obligations and make payments more easily.
3. Buy and Sell
Most tips for faster clearance involve side hustles. Extra income from various sources boosts our bank balances and frees up more funds for student loan repayments.
One of the most popular options is buying and selling via the leading online sales and auction sites. Items can be sourced in bulk via clearance sales and sold individually. There are no guarantees of profit, but if you can source products in demand, this can be a lucrative second job.
4. Clinical Trials
The future of medicine relies on clinical trials to produce effective cures. Each of these trials targets different demographic groups, and many pay extremely well for your time and attendance.
Clinical trials aren’t for everyone, but they’re regulated to ensure the safety of all those participating. It’s a rewarding way to earn extra income.
5. Use Savings Apps
Banking apps such as Monzo help you manage your money while saving toward specific goals. Many people use them for luxury purchases, but paying off student debt early is a worthy goal.
Such apps also help educate young people on managing their money and prioritizing bills and other necessities. They’re good all-around tools for anyone starting out on their financial journey.
6. Speak to Your Employer
In recognition of the burden of student debt, some employers assist young people when they join the workforce. Tuition reimbursement may be possible, especially if your course was specific to the industry that you’re now working in.
Most employers advertise these benefits when they post vacancies, but it’s worth speaking to your HR department to see if there are schemes that can help.
7. Driving Work
If you own a car and don’t mind using it to generate extra income, there are several ways to do this. Companies like Amazon and Instacart require delivery drivers for different sectors, and food delivery can often result in extra tips.
Alternatively, why not join a ridesharing operator such as Uber or Lyft? If you enjoy driving and meeting people, it can be a fun way to earn extra income.
8. House Sitting
When people are on vacation, they have a range of tasks that need to be done. Looking after plants and pets and generally monitoring security offers opportunities that recent students can use for extra income.
You could start by helping out friends and family who are away before expanding your operation to the neighborhood.
9. Get a Roommate
If you’ve moved away from the family home, paying regular bills, including rent and utilities, can increase the term of your student loan. At this time, we need to focus more on additional revenue, and getting a roommate is one answer.
There’s a saying that two can live as cheaply as one, so aim to split those household costs and free up more of your income.
10. Start Couponing
Many of these tips can lead to better financial habits in later life. You don’t have to be an extreme couponer to save money, and many aspects of those TV programs involve myths, but there are savings to be made.
If you have enough money in your budget for your weekly grocery bill, why not use coupons? Any savings you make can go towards additional student loan payments.
11. Use Windfalls
Any unexpected windfall can be diverted towards your student loan. If you receive a tax refund, an inheritance, or a gift from your parents, consider what it’s best used for.
At any stage in your financial life, you should prioritize your debts, and while you don’t have to use it all on your student loan, any overpayments will help you clear your loan more quickly.
12. Take on Freelance Writing Work
Many companies would like to speak to you if you have a gift for the written word. Firms that outsource this type of work may hire freelance editors, writers, and transcribers.
Job vacancies can be found on boards such as Upwork and Craigslist. Pay varies, but earning a few hundred dollars each month is possible.
13. Manual Labor
If your skills are more manual, offering your services as a cleaner or gardener is a better option for extra revenue. Many households are time-poor and will hire externally to look after their homes and yards.
Skills in these areas are essential. If you want to consistently earn income from a range of clients, you should only take this work on board if you can do an excellent job for your customers.
14. Student Loan Forgiveness
There are some ways in which outstanding student finance can be written off. For example, if you have worked for a government agency or a non-profit organization for at least ten years, you can apply under the Public Service Loan Forgiveness (PSLF) scheme.
The PSLF also requires you to have made at least 120 monthly payments to your loan. Teachers who have been in agencies or low-income schools for at least five years may also qualify for loan forgiveness up to a limit of $17,500.
15. Consider Refinancing
If you have additional loans alongside your student finance, it could be a good idea to consolidate them. Having one loan means there is just one monthly payment, and you will likely find lower interest rates.
Refinancing should be considered carefully, so speak to an independent advisor to discuss your personal situation.
