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3 Intelligent Moves for Those Stuck in Student Loans

student loan debt relief

You applied for a student loan back when you were enrolled in your college studies, and now you’re struggling to give everything back with accumulated interest. This is more or less a common story for most of the people who struggled to get enough funds throughout their college days and were attracted by the opportunity to loan money from the State.

No reason to panic at all, as there are numerous ways you might want to consider how to get out of the debt spiral you’ve gotten yourself into. Staying informed and always up-to-date with things that are applicable to your situation is the first step. When you know how Trump’s latest ban on federal student loans affects you, for example, you will have a solid point from where you should work on the strategy to get out of debt.

Make a Plan

A plan has to be realistic first and foremost. Making unrealistic projections depending on time frame provided and your current income will devastate your chances to successfully pay off the loan. Needless to say, it can lead to a psychological breakdown and deepen frustration by living in debt.

With that being said, planning for 3 to 5 years ahead proved to be a good way of dealing with these situations. A plan has to be aggressive at the same time and to be based on what you can afford keeping in mind your current income. If the plan is more aggressive than you can afford, then you have to be ready to accept any part-time work opportunity that might come around. It can be exhausting, but the final goal is what will keep driving you forward.

Seize the Opportunities

Getting a loan is not always a bad idea. All you have to do is to be aware of the market trends, all the benefits, perks, or parameters associated with taking the loan. You have to project (again, realistically and based on actual facts) future trends of interest rates and to come up with a plan on how to put money back in as little time as possible.

Since you already have a student loan to pay back, looking into the possibilities to refinance the loan or maybe debt consolidation would prove to be a good starting point. One neat trick is to always look into paying off debt that has the highest interest rate. If you opt for student loan consolidation, you will agree upon one uniform interest rate to be paid over a future couple of months or years.

Going further, if you have problems with discipline when paying out a debt, you may opt for automated deductions. You might as well think about making debt repayments twice a month instead of only once.

Last but not the least, be aware that there is an option for a tax deduction on student loans. This will give you the option to lessen your loan burden by using government money. If you’re not sure about how to do this, then you can seek advice from your local tax office or someone who is knowledgeable on the subject.

Sell Your College Knowledge and Skill

Finally, one option out there is to make a deal with your future employer to pay off your loan for you. Of course, no one will be willing to take that obligation on himself without asking for nothing in return. Basically, you will need to come out with the best solution possible when negotiating terms of your work with an employer. Possibly the deal will include lower salary in the beginning months of your tenure until the loan has been fully repaid.

Whatever option you choose to go with, we wish you all the luck you might get!

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