Are you one of the many law graduates struggling to pay off your student loans? If so, you’re not alone. According to a report from the American Bar Association, the average law school graduate leaves school with over $140,000 in debt. This blog post will discuss tips to help you pay off your law school feet in less than five years!
1. Start by creating a budget and sticking to it
One of the best ways to pay off your law school debt is to create a budget and stick to it. This will help you see where your money is going and how much you can realistically afford monthly student loans. There are many ways to create a budget, so find one that works best for you and stick to it!
If you need help with many resources, there are many available online, or you can speak to a financial advisor.
Once you have created a budget, make sure to put extra money towards your student loans each month. Even if it’s only an extra $50 per month, it will make a big difference in the long run!
If you can swing it, try to make lump sum payments towards your loans when you have extra money. This will help you pay off your debt faster and save you money in interest charges.
2. Make extra money through side hustles or freelance work
Financial aid and scholarships can only do so much to help you pay for law school. You need to make extra money through side hustles or freelance work to get ahead.
There are many ways to make extra money, so find something that works for you and that you’re passionate about. For example, you could start a blog or a YouTube channel, do some freelance writing or graphic design work, or even start your own business.
Making extra money through side hustles or freelance work can be a great way to accelerate your debt payoff timeline and get out of debt sooner than you thought possible!
These are just a few tips that will help you pay off your law school debt in less than five years. If you’re struggling to make your student loan payments, remember that your resources here are available to help you.
You may be eligible for loan forgiveness if you work in a public service job. This program allows you to have your student loans forgiven after making 120 monthly payments.
To qualify for this program, you must work full-time in a public service job and make 120 on-time payments. After that, the remaining balance on your loan will be forgiven.
This program can be a great way to get out of debt if you qualify, so check if you’re eligible!
3. Live frugally and avoid unnecessary expenses
Small changes in your spending habits can also free up some extra cash for your student loans each month. For example, if you typically go out to eat several times per week, try cooking at home more often. Even a few extra dollars each month can make a big difference!
Remember that paying off your law school debt may take some time, but it is possible! By following these tips and staying disciplined with your payments, you can be debt-free in no time!
4. Apply for scholarships and grants whenever possible
Many different scholarships and grants are available to law students and recent graduates. If you need help paying for law school, research these options and apply for as many as possible.
Receiving even a small amount of financial aid can make a big difference in your ability to pay off your student loans. So don’t be afraid to apply for scholarships and grants—you may be surprised at how much money you can receive!
Student loan refinancing
Student loan refinancing may also be an option worth considering. This process involves taking out a new loan to repay your existing student loans. The new loan will have a lower interest rate, saving you money over time.
Federal Student Loans
Federal student loans also offer several repayment plans to make your monthly payments more manageable. If you’re struggling to make payments, consider switching to an income-based repayment plan.
Private student loans typically don’t offer the same repayment options as federal loans, but some lenders may be willing to work with you if you’re having trouble making payments.
Student Loan Debt Consolidation
If you have multiple student loans, you may be able to consolidate them into a single loan. This can simplify the repayment process and help you save money on interest charges.
Student debt consolidation is typically only an option for federal student loans. However, some private lenders may also offer consolidation services.
Monthly payment assistance programs can also help you make student loan payments if you’re struggling financially. These programs typically involve making a small monthly payment to the program in exchange for assistance with your student loan payments.
Refinance student loans
If you have private student loans, you may be able to refinance them to get a lower interest rate. This can save you money over the life of your loan and help you pay off your debt faster.
Many different lenders offer student loan refinancing, so shop around and compare rates before choosing a loan.
Variable rate loans
Your interest rate may increase over time if you have a variable rate loan. This can make it more challenging to keep up with your payments and lead to default.
To avoid this, consider switching to a fixed-rate loan. This type of loan has a set interest rate that will not change over time, so you’ll always know how much your monthly payments will be.
Savings or checking account
You may also be able to use your savings or checking account to make your student loan payments. This can help you avoid late fees and maintain your account.
Student loan balance
If you’re having trouble making your student loan payments, you may be able to negotiate a lower balance with your lender. This can help you get back on track and avoid default.
Private student loan consolidation
If you have multiple private student loans, you may be able to consolidate them into a single loan. This can simplify the repayment process and help you save money on interest charges.
Many different lenders offer private student loan consolidation, so shop around and compare rates before choosing a loan.
Only Federal Loans
You may be eligible for loan forgiveness if you only have federal student loans. This means that your remaining balance will be forgiven after a certain period.
To qualify for loan forgiveness, you must make your payments on time for several years. The specific requirements vary depending on the loan forgiveness program you’re eligible for.
Law School Loans
Several options are available if you struggle to pay off your law school loans. You can refinance your loans, consolidate your debt, or switch to an income-based repayment plan. You may also be eligible for loan forgiveness if you have federal student loans.
Variable Interest Rate
Your monthly payments could increase with a variable interest rate on your student loans. This can make it challenging to keep up with your payments and lead to default.
Several options are available if you struggle to pay off your law school loans. You can refinance your loans, consolidate your debt, or switch to an income-based repayment plan. You may also be eligible for loan forgiveness if you have federal student loans. Interest rates are at historic lows, and EdFed has some of the best options for refinancing student loans.