Some people’s student loan payments are simply out of this world.
Acquiring A Second Job Can Help Keep Up With Student Loan Payments
According to Motley Fool data, the average monthly student loan payment is $337. However, not everyone pays in that range.
More than 20% of borrowers pay between $100 and $199 each month in student loan payments. Approximately the same percentage of borrowers have monthly student loan payments ranging from $200 to $299.
On the other hand, nearly 15% of borrowers make monthly student loan payments ranging from $500 to $999. In addition, 5% of borrowers have monthly student loan payments of $1,000 or more. Ouch.
If you have a big student loan payment due each month, it may be worthwhile to look into refinancing possibilities. You can also consider acquiring a second job to help ensure that you can keep up with your payments.
Is It Possible To Refinance Your Student Loans?
If you have federal student loans, refinancing may not be a good idea. Not only can you end up with a lower interest rate than you’re presently paying, but you’ll also lose key protections that come with federal loans, such as the ability to put your loans into forbearance.
However, if you have a monthly student loan payment of $1,000 or more, it is likely that you took out private loans in the first place. In that situation, you may be able to refinance those loans and cut your interest rate, reducing your monthly payments.
To do so, you should first examine your credit score to determine its current state. The higher your score, the more probable it is that you will be able to obtain a more competitive interest rate on your student debt when refinancing.
It’s also critical to shop around for the greatest student loan refinance rate. You should do this if you want to refinance debt, whether it’s a personal loan, an auto loan, or a mortgage.
The gig economy may be able to assist you.
On an average salary, making a $1,000 monthly student debt payment or more is challenging. It’s considerably more difficult if you make more than the average. That is why you should consider taking advantage of the thriving gig economy.
If you can pick up a second job on top of your main one and are willing to put in a good amount of hours, you could be able to increase your income significantly. If you owe $1,000 or more per month on your student loans, your side job may not be enough to cover them completely. However, that second income may cover half of your monthly payments. That should help.
When you borrow privately for college and attend an expensive institution, it’s easy to end up with monthly student loan payments of $1,000 or more. whether that’s the monthly amount you’re looking at, investigate whether refinancing can lessen it, and consider turning to the gig economy to make that debt more manageable.
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