Though obtaining a higher education is a dream for many, affording it is an uphill battle. Student loans are a convenient financial product that makes it possible for those who wouldn’t otherwise be able to afford to, to obtain a college education. However, once the degree has been obtained and graduation passes, the time to pay up leaves many struggling to figure out what to do.
When Lifelines Are Exhausted
Most college graduates have yet to obtain a high-paying job, while even more are already supporting families and covering other living expenses. Though there are several lifelines that can be used to buy you more time, once they’re all used up, paying the balance due is vital. Failure to do so could lead to defaulting on the loan which ruins your credit. It can also prevent you from getting further funding for the school, garnish your pay, and revoke your income tax returns. If you don’t want to find yourself dealing with such difficult financial circumstances, you’ll need to come up with some out-of-the-box ways to repay it – and fast. Below are a few suggestions.
Take Out a Loan
If your student loans are several months behind, you’ll need to get them caught up to avoid going into default. If you’re unable to afford the total past due amount, you could borrow the money and then work with your student loan provider to get back on the straight and narrow. There are easy personal loans you can find online to apply for that don’t require you to have any collateral or a high credit score. You can borrow as much as $2,000 and use it to get that large number under control.
If you have several student loans, each with a different interest rate, past due balance, and principal balance due, consolidating them can help you avoid defaulting, save you some money, and make repaying them a bit easier. Ideally, you apply for one large loan that would cover the costs of your existing student loans. The consolidation company would pay your student loans off and you would simply be responsible for repaying them for their services. With one interest rate and one monthly payment, it is often a lot cheaper than paying multiple loans. It also keeps them from defaulting as their status would be paid in full.
Though it may be taking you a long time to secure that high-paying job that you thought you’d get once you graduated from college, there are a lot of side hustles you can try to earn more money in the meantime. From being a blogger or social media manager to a mystery shopper, virtual assistant, or consultant, you can use all the money you get from your side hustle to put towards your student loans. As many of these jobs have opportunities for you to get paid within a few days, you can start right away with tackling the high student loan balances.
If you’re struggling with student loan debt, it is imperative not to ignore the problem. As you can see from above, those who ignore this form of debt can end up suffering ongoing, grave consequences that make living a lot harder. It is best instead to utilize some of the recommendations discussed to get the balance down and prevent them from defaulting.