6 Creative Options for Repaying Student Loans

Posted on: September 11, 2020

Billions of Americans with student loans are looking for ways to pay off their debt quickly. Here are six options for repaying student loans:

1. Volunteer first responder

Do you have experience in emergency medicine, but work in another field? Ask if your community has a team of volunteer emergency first responders. Depending on the need, volunteer first responders could receive assistance with student loan repayments. Harford, Md., is an example of a community working to adopt this option.

2. Funding pools for refinanced loans

Some states recognize the importance of helping repay student loans to keep residents living and working in the state. Bonds are sold to the public to create funds to offer a refinance program. Workers with college loans apply to refinance their loan at a better interest rate and payment terms. These states realize that setting up a refinancing program can support overall economic growth.

3. Other loan refinancing

If your state doesn’t offer a refinance program, there other options. Contact the bank or financial organization that owns your student loan to discuss refinance options. Ask about ways to get relief from interest payments. Also, learn about debt forgiveness programs. BenefitEd has a partnership with Nelnet Bank that offers refinance solutions at competitive rates to employees with good credit and income. Learn more at NelnetBank.com.

In addition to working full-time, many borrowers have a second part-time job to help cover monthly costs. There also are many other options to earn extra money. Here are several ideas:

4. House or pet sitting

If you’re OK with not sleeping in your own space, offer to watch a house or a pet while the owners are away. You’ll make some extra money and save on utility costs. Check online sites to find home or pet sitting opportunities.

5. Reduce grocery spending 

For many people, a large portion of their monthly grocery bill is spent on alcohol, meat and dairy. Set a monthly budget for purchases of alcohol, including drinks with friends, and plan meatless and dairy-free meals each week. Look for alternative nutritious plant protein options.

6. Sit on a mock jury

Lawyers hire people to serve in a mock jury to listen to trial presentations. Look online for opportunities in your area.

Research shows that the most effective way to handle financial stress is to plan for expenses. But about 33% of Americans don’t live on a budget. Review tips to schedule monthly costs.