Student loan debt is a huge problem in the United States. In fact, there are more than 44 million borrowers who collectively owe more than $1.5 trillion in student loans. While it may seem impossible to overcome this amount of debt, there are actually several ways that you can lower your monthly payments. In this blog post, we will discuss six proven tips that can help you get started!
More: Find the best student loan refinancing options at EdFed.
1. Understand your loan terms and interest rates
One of the most important things you can do when it comes to your student loans is to understand the terms and interest rates. Many borrowers simply accept whatever their lender offers them, without shopping around or negotiating for a better deal. However, by taking the time to understand your loan terms, you may be able to find a lower interest rate and save money in the long run.
If you’re not sure where to start, you can compare lenders here.
2. Make a budget and stick to it
The next step is to create a budget and stick to it. This may seem like an obvious tip, but it’s important to remember that your student loan payments are just one part of your overall financial picture. By creating a budget and tracking your spending, you can make sure that you’re prioritizing your debt repayments and putting yourself in a strong financial position.
There are a number of different budgeting methods you can use, but one simple way to get started is to track your spending for one month and then create categories based on where your money goes. From there, you can start making adjustments to ensure that you’re putting enough towards your debt repayments each month.
3. Live frugally
If you’re serious about lowering your student loan payments, you may need to make some lifestyle changes. This doesn’t mean that you have to give up all of your fun, but it does mean that you’ll need to be more mindful about your spending. For example, rather than going out to eat or drink every weekend, try cooking at home more often. You can also save money by cutting back on shopping, entertainment, and other discretionary expenses.
Of course, you don’t have to make all of these changes overnight. But by slowly cutting back on your spending, you can free up more money to put towards your student loans.
4. Get a side hustle
In addition to cutting back on your spending, another great way to lower your student loan payments is to make extra money. This can be done through a variety of different side hustles, such as freelancing, online surveys, or even starting a small business. And the best part is that you can often do these things in your spare time, so they won’t interfere with your regular job or studies.
If you’re not sure where to start, check out this list of 100+ side hustle ideas. And remember, even if you can only make a few extra dollars each month, it can still make a big difference in your student loan repayments!
5. Apply for scholarships and grants
One of the best ways to lower your student loan payments is to avoid borrowing money in the first place. And one way to do this is by applying for scholarships and grants. There are billions of dollars in financial aid available each year, so it’s definitely worth taking the time to fill out applications and explore your options.
6. Negotiate a lower interest rate with your lender
If you have private student loans, you may be able to lower your interest rate by negotiating with your lender. This process can be a bit daunting, but it’s definitely worth doing if you think you can get a better deal.
To start, gather all of the necessary paperwork, including your loan agreement, payment history, and credit report. Then, reach out to your lender and explain that you’re interested in refinancing your loan at a lower interest rate. Be sure to be polite and professional, as this can go a long way in getting the best possible deal.
If you’re not sure where to start, check out this guide from Student Loan Hero. It includes a step-by-step process for negotiating a lower interest rate, as well as templates and scripts that you can use.
Lower student loan payments can give you some much-needed breathing room in your budget. If you’re struggling to make your payments, be sure to explore all of your options and find the best solution for your situation.
Private loans are not your only option for borrowing
Federal student loans should be your first choice for borrowing because they offer fixed interest rates, income-driven repayment plans, and the potential for forgiveness. But if you have private student loans, you may be able to lower your interest rate by negotiating with your lender. This process can be a bit daunting, but it’s definitely worth doing if you think you can get a better deal.
To start, gather all of the necessary paperwork, including your loan agreement, payment history, and credit report. Then, reach out to your lender and explain that you’re interested in refinancing your loan at a lower interest rate. Be sure to be polite and professional, as this can go a long way in getting the best possible deal. Monthly payment plans are available for federal student loans
If you’re struggling to make your monthly student loan payments, you may be able to enroll in an income-driven repayment plan. These plans are based on your income and famiFor private student loans, you can try to negotiate a lower interest rate with your lender. This process can be a bit daunting, but it’s definitely worth doing if you think you can get a better deal.
Federal student loan payments can be lowered by enrolling in an income-driven repayment plan. These plans are based on your income and family size, and they can help make your payments more manageable. You can also apply for deferment or forbearance if you’re struggling to make your payments.
Federal loans also offer the potential for forgiveness after 20-25 years. This means that if you’re still struggling to make your payments after a long period of time, your remaining balance could be forgiven.
More: Find the best student loan refinancing options at EdFed.
In Conclusion:
There are a number of ways to lower your student loan payments. If you’re struggling to make your payments, be sure to explore all of your options and find the best solution for your situation. You can also reach out to a financial advisor or student loan counselor for more help. EdFed’s student loan refinancing options can help you save big on your interest rates. Check them out today!
