9 Tips For Help With Student Loan Debt Relief

Student Loan Debt Relief: What You Need to Know

Student loan debt is a common struggle for many students and graduates. Whether you’re facing large amounts of debt after graduation, or you’re just beginning to think about how much you’ll need to borrow, it’s important to understand your options. Here we’ll explore some practical student loan debt relief strategies, along with tips to help you avoid overwhelming debt in the first place.

The Best Student Loan Debt Relief? Prevention!

Let’s be real—there’s no one-size-fits-all solution to student loan debt. But the best way to avoid financial stress is to limit how much debt you take on in the first place. Here are some solid tips to keep your student loan debt manageable:

#1 Don’t Borrow More Than You Can Afford

It’s tempting to take out the maximum loan amount, especially when it feels like everyone is doing it. But here’s the deal: you’ll want to borrow only what you can realistically repay after graduation. A good rule of thumb is to borrow no more than your expected starting salary. For example, if you’re studying art and plan to work as a teacher, borrowing $50,000 might be too much, whereas if you’re going into medicine, it might make sense.

“Student loan debt should be manageable, so take some time to figure out how much debt you can handle comfortably. Trust me, it’ll save you stress later.”

Do your research, Top 10 College Degrees That Pay Off Big Time, and understand your field’s expected salary. This can help you make informed borrowing decisions, and avoid over-borrowing.

#2 Apply for Scholarships

Don’t assume that scholarships are just for the “perfect” students. There are scholarships for just about everything! Whether it’s based on your field of study, hobbies, or even where you’re from, you’re likely to find an opportunity. Even small scholarships can make a huge difference. For example, winning a $500 scholarship each year can add up to $2,000–$2,500 over four years, helping you avoid that much in student loans.

“You miss 100% of the scholarships you don’t apply for. Seriously, it’s worth it to take the time!”

Use websites like CollegeWhale.com or check with your school’s financial aid office for local opportunities.

#3 Fill Out Your FAFSA

Never skip the FAFSA! The Free Application for Federal Student Aid (FAFSA) is your ticket to federal grants, low-interest loans, and work-study opportunities. Filling out the FAFSA is free and should be your first step before considering private loans. Even if you think you won’t qualify, it’s worth submitting. Federal loans come with more flexible repayment options compared to private loans, so it’s always better to tap into these resources first.

“Don’t sleep on FAFSA—it’s the golden ticket to better loan terms and free money!”

#4 Work Part-Time While in School

It might not be glamorous, but working a part-time job during school can help offset your living costs and reduce the amount you need to borrow. Even working 10–15 hours a week can make a huge impact on your financial picture.

Plus, part-time jobs teach time management and help build your resume. Who knows, you might even land a job related to your future career!

Debt Relief Options for Students Already Out of School

If you’re already out of school and dealing with student loan debt, there are still options to ease the burden. Here’s a look at some common student loan debt relief options:

#5 Student Loan Consolidation

Consolidating your student loans means combining multiple loans into one. This can simplify your payments and may even reduce your monthly payment if you extend the term of your loan. You can check out How To Compare Student Loan Consolidation, which also gives you access to more repayment plans.

“Consolidating loans can help you simplify your life. Just make sure you’re not extending your repayment period too much, or you might end up paying more in the long run.”

Unfortunately, consolidation options for private loans are more limited, but some private lenders do offer consolidation or refinancing programs. If you qualify, you could lock in a better interest rate or extend the loan term to lower your monthly payment.

#6 Extended Repayment Plan for Federal Loans

If you have federal student loans and can’t afford your current payments, you might want to look into an extended repayment plan. This plan extends your loan repayment period up to 25 years, lowering your monthly payment amount. However, keep in mind that extending the term of your loan can result in paying more in interest over the life of the loan.

This plan can be a lifesaver for borrowers who need a lower monthly payment but don’t qualify for other relief programs.

#7 Income-Based Repayment Plans

For federal student loans, an income-driven repayment (IDR) plan might be the way to go. Programs like Income-Based Repayment (IBR) base your monthly payments on your income, and if you have a low income, your payments could be much lower. After 20 or 25 years of qualifying payments, any remaining balance may even be forgiven!

“IBR is like a financial safety net. If you’re struggling, it can really help you out—just make sure you recertify every year!”

#8 Deferment or Forbearance for Short-Term Relief

If you’re going through a tough time—say, you’re between jobs or dealing with health issues—deferment or forbearance can offer short-term relief. These options allow you to pause your student loan payments for a set period, giving you time to get back on your feet.

However, keep in mind that interest will likely continue to accrue during deferment or forbearance, and it may be added to your loan balance when the break ends. It’s a short-term fix, so be careful not to rely on it too long.

#9 Student Loan Forgiveness Programs

If you work in certain public service fields, you may be eligible for student loan forgiveness after making 120 qualifying monthly payments under a qualifying repayment plan. Popular programs include Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness.

“Loan forgiveness can feel like a dream come true. Just make sure you’re on the right track and keep your documentation in check!”

Check out more information on PSLF and other forgiveness programs.

Student loan debt can feel overwhelming, but by understanding your options, you can find a solution that works for you. The best way to deal with student loan debt is to limit how much you borrow in the first place, but if you’re already facing a mountain of debt, don’t panic! There are plenty of options available to reduce your payments, consolidate loans, or even get some of your debt forgiven.

Whether you’re still in school or already in repayment, it’s crucial to stay informed and explore all available options. From scholarships to income-driven repayment plans to student loan forgiveness, there’s always a path forward. Don’t be afraid to reach out to your loan servicer or a financial advisor for guidance—taking the first step towards managing your debt can make all the difference!