Ideas for Helping Borrowers Find Money to Pay Student Loans

Ideas for Helping Borrowers Find Money to Pay Student Loans

The start of the year is the perfect time to reconnect with borrowers and discuss their goals for 2018. Maybe they’re looking to pay down their debt and get their financials in order for the year. Having this conversation can help guide borrowers to think outside of the box when it comes to repaying their student loans. Here are few suggestions you can pass along to your borrowers:

  1. Find out if their employer offers a student loan repayment program. This is a new benefit that’s slowly popping up in company benefits packages and has already been happening for employees at a variety of colleges and universities. If your borrower works in the public sector, they should explore their options through certain state or federal programs.
  2. Put their tax refund to good use. With tax season right around the corner, many people are banking on getting a high dollar tax refund. This check is the perfect opportunity to put some money down on student loans or get caught up in repayment.
  3. Apply for repayment grants. If they work in certain fields, they may be eligible to apply for a grant. Grants can typically be found for those in fields like nursing, mental health, medical, young farmers, and STEM professions.
  4. If they get a raise keep living like they were. If the borrower was rewarded a raise this past year, encourage them to continue living like they were - as long as it was within their means - and use the increased salary each month to increase their student loan payment. As your income goes up, pay down your loans quicker.
  5. Look for ways to cut costs. While it may be easier said than done, searching out ways to eliminate some costs from their monthly budget is a great way to put more money on their student loan. Here are some ideas to share:
  • Ditch your cable and opt for streaming programs instead.
  • Buy non-name brand products at the grocery store.
  • Pull money out of your shopping and entertainment budget. Cutting now can pay off later.
  • Car pool and split the cost of gas with coworkers.
  • Cancel your gym membership and take your workout outside or in your home.

While repaying their student loans may seem overwhelming to your borrowers, let them know it can be done with a little discipline and a good plan. By implementing a few of these strategies, they could pay off their loans even faster!