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Financial Planning (Blog or Resources)

Starting a Family? Why Now’s the Time to Refinance Student Loans

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By Caroline Farhat

 

Are you planning to start (or add to your) family? Congratulations! Children are such a special joy, and starting a family is an incredible journey. Whether you’re already expecting or are just in the planning stages, there is a good chance you’ve started crunching some numbers to see how adding a family member will affect your monthly budget. It’s no secret that kids are expensive — the U.S. Department of Agriculture reported that, on average, it would cost a middle-income family $233,610 to raise a child born in 2015 through the age of 17. If you’re currently paying off debt, the eye-popping numbers a child costs may look even more daunting. But money should absolutely not stop you from starting a family. Of course, you want to be financially responsible, but you shouldn’t feel pressured to be debt-free before starting a family. Instead, focus on the things you can do to lighten your budget and leave more room for your new bundle of joy. Here’s how refinancing student loans can help. 

 

Why Refinancing Student Loans When Starting a Family is a Smart Move

One of the biggest worries many new parents have about starting a family is the financial unpredictability children can bring to the household budget. Medical costs, childcare, and all of the latest baby products can certainly add up. One of the best ways to combat this unpredictability is by lowering your fixed monthly costs. 

 

If you are currently paying off student loan debt, refinancing student loans is one of the smartest steps you can take to lower your monthly payment. In fact, student loan borrowers who refinance with ELFI* have reported an average savings of $309 per month1. To put that in perspective, that would get you 38 packs of 32-count diapers. Plus, the emotional benefits you can receive by throwing less money at your student loan debt and more on what is really meaningful to you can be priceless. 

 

How To Refinance Student Loans

If you’re looking at your interest rate and are ready to refinance, you’ll be happy to know that it’s a simple process that can be done entirely online. If you refinance student loans with ELFI, the application process is 100% free, and refinancing has no origination fees or prepayment penalties. The ROI of refinancing student loans can also be quite large. Just an hour or two of work can yield you thousands of dollars in savings. Not bad, right? Here’s what to do:

 

  • Check the requirements – While student loan refinancing is a smart move for many student loan borrowers, there are a few cases where refinancing may not be the best option. For example, if you qualify for student loan forgiveness through a federal program, refinancing student loans would make you ineligible for this benefit. Review the basic criteria for student loan refinancing to make sure it’s the best fit for your particular situation. It’s important to fully understand how the Public Student Loan Forgiveness (PSLF) program works and the eligibility requirements. 

 

>> Related: Student Loan Refinancing vs. Public Service Loan Forgiveness

 

  • Crunch the Numbers – Put your data into our student loan refinance calculator to see your potential savings. Our calculator has options for fixed and variable interests and loan terms of 5, 7, 10, 15, or even 20-year terms so you can see how your choices affect your monthly and lifetime payment*.
  • Get prequalified – You can get prequalified and receive personalized rates in just a few minutes without it affecting your credit score.
  • Gather your documents and apply – As mentioned, the application is 100% online, easy, and free. When refinancing with ELFI, you are paired with a personal loan advisor who will guide you through every step of the process. The Personal Loan Advisor who speak with at the beginning of the student loan refinancing process is the same person you’ll speak with at the end, which is nice because you won’t find yourself repeating information or prior discussions.

 

What to Do About Other Debt and Expenses

If you’re like many Americans, student loan debt may not be the only debt you are currently paying off. A whopping 80% of Americans are currently in debt, according to a report from The Pew Charitable Trusts. Here are a few ways you can pay off your debt more quickly or more efficiently.

 

  • Refinance Your Debt – Similar to refinancing student loans, you should look for opportunities to refinance any of your other debt. For example, if you have a mortgage, refinancing could save you thousands of dollars over the life of your loan. Auto loans can also be good candidates for refinancing. 
  • Call Your Credit Card Companies – A reduction in the interest rates on your credit cards can make a big difference in how quickly you can pay down debt. A simple, polite phone call to your credit card companies requesting an interest rate reduction can sometimes be all that it takes. You have nothing to lose (except a few minutes), and the payoff can make a major difference in your monthly budget. 
  • Explore Medical Debt Options – Approximately 66.5% of Americans who file for bankruptcy due so because of medical bills. There are options to get this debt under control, but it will take some leg work. NerdWallet has a number of good tips for how to negotiate down your medical debt or develop a payment plan that works for your budget. 

 

Typically, when paying off debt, it’s wise to start with the loan with the highest interest, as that will save you the most money in the long run. Once you have reduced your interest rates as much as possible, take stock of all of your existing debt payments and their monthly costs, and develop a plan. With any of the money you saved, you can start a separate savings account for your growing family. 

 

Children Are Priceless, So Don’t Let Debt Stop You

It may sound cliché, but there are things in life that are just priceless. For many people, the love and joy a child can bring to life are worth more than any spreadsheet will tell you. If you are currently working towards paying off debt, don’t let the goal of being debt-free trump your desire to start a family. There simply may never be a perfect time. Plus, with a little planning, it’s entirely possible to start a family and still work on your financial goals. 

 

Good luck to all of our current and future parents out there – you got this!

 


 

*Education Loan Finance is a nationwide student loan debt consolidation and refinance program offered by Tennessee based SouthEast Bank. ELFI is designed to assist borrowers through consolidating and refinancing loans into one single loan that effectively lowers your cost of education debt and/or makes repayment very simple. Subject to credit approval. See Terms & Conditions, The interest rate and monthly payment for a variable rate loan may increase after closing, but will never exceed 9.95% APR. For example, a 10-year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. Rates are subject to change.

 

1Average savings calculations are based on information provided by SouthEast Bank/Education Loan Finance customers who refinanced their student loans between 8/16/2016 and 10/25/2018. While these amounts represent reported average amounts saved, actual amounts saved will vary depending upon several factors.

 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

Mark Your Calendar for These Important Financial Dates

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It’s no secret that as you get older, life gets more complicated. Long gone are the days of simply saving spare change from your grandpa’s pockets in a ceramic piggy bank. Even that savings account you opened in high school is outdated now that your expenses have exploded beyond just food, entertainment, and a cell phone bill. As an adult, you have to consider your student loan debt, saving for retirement, and affording childcare, among an ever-growing list of other financial obligations.

 

One way to effectively manage your money in adulthood is to be aware of important financial dates. This helps you predict and prepare for big expenses to be sure there are no surprises. It even helps you capitalize on saving opportunities. And since it’s a new year, there’s no better time to pull out your calendar and mark these noteworthy financial deadlines.

 

Important Financial Dates

 

January

 

Review Last Year’s Finances – Reassess your retirement funds and allocations based on how they performed last year. If you didn’t get the gains you hoped for, now may be the time to reallocate your portfolio (i.e., adjust where your money is distributed among savings accounts, stocks, bonds, etc.) Also, take this time to consider adjusting contributions toward accounts like your 401(k) if your employee matching program changed.

 

Standardize Financial Dates – It’s hard enough remembering bills without them being due at different times throughout the month. Change payment dates to be on the same day at the end of the month, which gives you 30 days to get money in the right place.

 

Fund Your IRA – If you have a Traditional or Roth IRA (Individual Retirement Account), you can contribute up to $6,000 a year to these accounts. January 1 is the first day of the year that you can make such contributions, and investing as much as you can, as early as you can, maximizes the number of days your money can grow.

 

Revise Your Student Loan Debt Repayment Strategy – If you got a raise at the end of last year (or beginning of this year), be smart with that money and direct it toward your student loan debt. Even a raise of 2-3% can help you pay off loans quicker, reducing the amount of interest paid over the life of the loan.

 

 

February

 

Max Out 401(k) Contributions – Many people aren’t aware that as long as you haven’t hit your yearly limit, you can contribute toward your 401(k) beyond December 31. You have until Tax Day to make these tax-deductible contributions. So if you have the means, now is the time. In 2019, the limit for employee 401(k) contributions was $19,000.

 

 

March

 

Prepare for Tax Day – Be ready for April 15 by getting your documents and information organized in advance. Make sure you have all forms needed from your employer, investment accounts, mortgage accounts, and student loans. TurboTax has a handy guide for commonly-used IRS tax forms, including a Form 1098 that you’ll receive if you paid interest on a student loan last year.

 

 

April

 

File Your Taxes – April 15 is Tax Day in the U.S. For those of us with student loan debt, the interest portion of these payments is tax-deductible, up to $2,500.

 

Maximize Health Savings Accounts – Tax Day is the last day to contribute pre-tax dollars to last year’s HSA. In 2019, individuals could contribute up to $3,500 as an individual or $7,100 as a family.

 

Spend Down Flexible Spending Accounts – April 30 is the deadline for spending last year’s FSA funds. Remember, these are “use it or lose it” accounts and money can be applied to copays or other out-of-pocket expenses. You can even spend it on health-related items at FSAstore.com.

 

 

May

 

Check Your Credit – This important financial date isn’t tied to May, but it should be somewhere on your calendar every year. Your score determines your ability to improve your interest rate with student loan refinancing. A check can also let you know if any fraudulent activity—tied to your name—has occurred that might negatively impact your student loan refinancing.

 

 

June

 

FAFSA Application Due – June 30 is the last day to complete the Free Application for Federal Student Aid (FAFSA) for the upcoming school year. If you already have a student loan, consider student loan refinancing. By consolidating and refinancing your loans, you can make payments simpler and possibly reduce your monthly payments.

 

 

July

 

Refinance Student Loans – Summer is a great time to refinance student loans because you won’t be distracted by the holidays or year-end deadlines at work. When you’re ready, check your eligibility for student loan refinancing at ELFI.com.*

 

 

August

 

Contribute to Emergency Funds and Savings – Unless someone in your family heads back to school this fall, August is typically a sleepy month for finances. Time to double-check that you’re contributing to emergency funds and holiday savings accounts so you don’t get into financial trouble during end-of-the-year festivities.

 

 

September

 

Car Shop – This month is a great time to look for a new vehicle. Dealerships are in a generous mood since new models will soon start rolling into the lot, and they need to clear inventory.

 

 

October

 

Complete FAFSA for Next Year – October 1 is the first day to file your FAFSA for next school year. Filling out this application as soon as possible ensures you don’t miss out on available aid.

 

 

November

 

Open Enrollment – Employers typically hold open enrollment during this time of year. Reassess if your current plan still works for you. Also consider if it’s worth changing plans or opting out of certain coverage (like dental) to reallocate funds to debts, like student loans.

 

 

December

 

Review Accounts – Make sure you’re making the right moves to use your FSA money, maximize contributions to savings accounts, and even if you need to file a new W-4 to withhold more or less money from your paychecks. Withholding less can be part of a new student loan repayment strategy where you have more cash to contribute toward the loan. However, it also means you won’t get as big of a refund next tax season.

 

Shop Around for Car Insurance – While you’ll want to update your car insurance after any major life change, such as moving or having a child, you could score additional savings depending on the time of year. In a 2014 study, December was the cheapest month to obtain car insurance, with March being the most expensive. While the jury’s still out on the exact reasoning behind the shift, market competition and the likelihood of natural disasters could be a contributing factor.

 

Being aware of important financial dates can help you save and manage your money so you have more options down the road for student loan repayment, business opportunities, and real estate investments.

 

If you’re ready to explore student loan refinancing, you don’t have to wait for an important financial date on the calendar. You can learn about eligibility, benefits, and more—today—at ELFI.com.

 

This blog has been prepared for informational purposes only and does not constitute financial advice. Always consult a professional for guidance around your personal financial situation.

 

 

 

 

 

 

*Subject to credit approval. Terms and conditions apply.

 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

Resolutions: How to Erase Your Student Loan Debt by 2025

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By Kat Tretina

Kat Tretina is a freelance writer based in Orlando, Florida. Her work has been featured in publications like The Huffington Post, Entrepreneur, and more. She is focused on helping people pay down their debt and boost their income.

 

If you’re like most college graduates, you left school with student loan debt. According to The Institute for College Access & Success, graduates have $29,200 in student loans, on average. Depending on your repayment term, you could be in debt for a long time. In fact, you could make payments for anywhere from 10 to 30 years. 

 

Having such a large burden on your shoulders can cause you to put off other goals, like starting a business or buying a home. To free yourself from your student loan debt, think of repayment strategies to pay off your student loans as soon as possible. 

 

If you’re determined to become debt-free, here’s how to pay off your student loans by 2025. 

 

1. Create a budget

To pay off your student loans early, you need to have a complete picture of your finances, so you know exactly how much money you have to work with. Creating a monthly budget is an essential first step. 

 

You can use programs like Mint or You Need a Budget (YNAB) to craft a budget and track your spending. Hopefully, you make more money than you spend each month. If that’s not the case — or if money is tight— you’ll have to make some changes to your lifestyle. 

 

2. Cut Corners 

To free up more money for debt repayment, you’ll have to take a hard look at your expenses and make some significant cuts. These life changes are not just for recent college students or those just starting out in their careers. If you’re committed to changing your financial situation in a short amount of time, some drastic life changes may be called for. Some things to consider include: 

  • Getting a roommate: While having a roommate may not be ideal, it can be a worthwhile decision. Considering that the average one-bedroom apartment costs $1,025, getting a roommate can help you save over $500 per month. That savings could make a big dent in your student loan balance. 
  • Taking public transportation: If possible, skip buying a car and rely on buses and trains, instead. You’ll be able to save money on a car payment, insurance, and repairs for a vehicle. 
  • Moving to a cheaper area: While moving to a more affordable area isn’t feasible for everyone, it can be a great way to save money. Moving to a less trendy area or even to another state can help you drastically reduce your living expenses. 

 

>> Related: U.S. Cities With the Most Student Loan Debt

 

  • Cooking at home: According to the Bureau of Labor Statistics, the average American spends $3,469 per year on food consumed away from home, such as restaurants or fast food locations. If you skip eating out and brown-bag your meals, you could save thousands. 
  • Negotiating bills: You’re probably paying more than you need to for your cell phone, cable, and internet. You can use a service like Trim to negotiate your utility bills for you, reducing your monthly expenses.

 

3. Increase Your Income

Exploring ways of increasing your income isn’t just for new college graduates. Even if you’re gaining a firm foundation in your career and just want to attack your student loan debt with voracity, putting in extra work hours could accelerate your financial goals. 

 

With a side gig, you can earn a significant amount of money. According to a BankRate survey, the average side job earns an individual $1,122 per month — which can make a big difference in knocking down your student loan debt. Here are some ideas to help you get started: 

  • Deliver groceries: If you have a car and a smartphone, you can make money delivering groceries for services like Shipt or Instacart. Depending on your location and speed, you could make up to $22 per hour. 
  • Rent out extra space: If you have a spare bedroom, closet, or empty garage, you can earn cash by renting out your extra space to locals who need to store items with Neighbor. 
  • Tutor online: If you have a computer and reliable internet, you can earn money by tutoring online. With services like Tutor.com and Chegg, you can make up to $20 per hour. 
  • Assemble furniture: If you have a knack for assembling Ikea furniture or toys, you have a lucrative side hustle. You can find clients with TaskRabbit or Takl
  • Walk dogs: If you love dogs, you can earn an hourly fee for walking them while their owners are at work. Create an account on Rover or DogVacay to get started. 
  • Work overtime: Public service officials, medical professionals, and educators can make a substantial amount of money on the side by working overtime. 
  • Offer consultation services: If you’re a savvy marketer or have a knack for e-commerce, create a side business of setting up social media accounts for local businesses. 

 

4. Research Student Loan Repayment Assistance Programs 

Depending on your major and location, you may qualify for student loan repayment assistance. 

 

For example, highly qualified teachers who teach for at least five years at an eligible school can receive up to $17,500 in loan help through Teacher Loan Forgiveness, a federal program. 

 

Healthcare providers in Pennsylvania can receive up to $100,000 in student loan aid through the state’s Primary Care Loan Repayment Program. In exchange, participants must agree to a service term in a high-need area. 

 

In Florida, lawyers who work for a legal aid organization can receive up to $5,000 per year through the Loan Repayment Assistance Program

 

To find programs you may qualify for, check out the federal government’s list of forgiveness programs, and visit your state’s Department of Education website. 

 

5. Use Windfalls Strategically

Using windfalls — unexpected influxes of cash — strategically can cut off years from your loan term.

 

For example, the IRS reported that the average tax refund in 2019 was $2,860. To put that number in perspective, let’s say you had $30,000 in student loans with an interest rate of 5% and ten years left in your repayment term. If you made a lump sum payment of $2,860, you’d pay off your student loans 14 months early. And, you’d save $1,722 over the length of your loan. 

 

6. Consider Student Loan Refinancing

If you’re determined to pay off your debt as quickly as possible, student loan refinancing can be a smart strategy. 

 

To refinance student loans, you work with a private lender like ELFI* to take out a new loan for the amount of your existing debt. The new loan has different repayment terms than the old ones. You’ll have a new interest rate, loan term, and minimum monthly payment. 

 

If you have good credit and steady income, you could qualify for a lower interest rate and save money. 

 

Let’s say you had $35,000 in student loan debt at 7% interest with a 10-year repayment term. By the end of your repayment term, you’d pay a total of $48,766. Interest charges would cause you to pay back $13,766 more than you originally borrowed. 

 

If you refinanced your student loans and qualified for a 10-year loan at just 5% interest, you’d repay $44,548. Refinancing your debt would help you save $4,218. 

 

ELFI’s Student Loan Refinance Calculator can help you determine how much you could save by refinancing.

 

7. Avoid Lifestyle Inflation

As your career advances and you start to pay off some of your loan debt, you might be tempted to splurge on a new car, bigger apartment, or fancier electronics to reward yourself. However, try to avoid the urge. Instead, allocate any extra money you have toward your loan payments. You’ll pay off your student loans faster, so you can become debt-free and enjoy more freedom. 

 

The Bottom Line

While your debt may be stressful, you can conquer it by coming up with detailed student loan repayment strategies. With some sacrifice and hard work now, you can eliminate your debt years ahead of schedule.

 

If you decide to refinance your student loans, use ELFI’s “Find My Rate” tool to get a rate quote, without impacting your credit score.

 


 

*Subject to credit approval. Terms and conditions apply.

 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

What is Debt-to-Income Ratio? (Video)

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The Debt-to-Income Ratio (DTI) lets you see how your total monthly debt relates to your gross monthly income. Your gross monthly income is your total income from all sources before taxes and other deductions are taken out.

 

Learn more about the importance of DTI and the role it plays in qualifying for student loan refinancing in the video below.

 

 

Learn More About Debt-to-Income Ratio (DTI)

 


 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

Financial Goals 2020: Tracking Your Spending

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This blog has been prepared for informational purposes only and does not constitute tax or financial advice. Please consult your tax advisor for guidance on your personal tax situation.

 

Whether it’s losing weight, going back to school, trying a new sport, or getting your finances in order, there’s no better month than January to refocus your body and mind. Right now, it’s a new year and a new decade so you’re not just resetting for the next 12 months, you’re kicking off the next 10 years, and the resolutions are more important than ever. If tracking your spending is at the top of your goal-setting list—especially after an indulgent holiday season—check out our budgeting tips below.

 

Budgeting Platforms

When it comes to budgeting, the tedious spreadsheets of yesterday are long gone. There are apps and online programs to make tracking your spending in 2020 a breeze. Mint is a simple (and free) budgeting planner and finance tracker that connects with your bank accounts and credit cards to help you see all account activity in one place. You can access Mint with your computer or phone to:

  • See spending across categories (like shopping, gas, eating out, etc.)
  • Create realistic budgets based on past spending habits
  • Set reminders for bills
  • Check your credit score
  • And more

While Mint is more of a look back at your past spending, you can also try more forward-thinking but paid-for budget tools like YNAB (You Need A Budget). Like Mint, this platform seamlessly connects to your accounts to help you see spending trends and automate budgeting, but it’s also more educational. To help you track your spending, YNAB focuses on four rules of budgeting:

  • Give Every Dollar A Job – don’t buy on a whim, be sure every dollar is assigned a task, whether it’s for eating out or paying student loans.
  • Embrace Your True Expenses – each month, set aside money for those big, inevitable expenses like car repairs and the holidays. Then you aren’t in a bind when they hit.
  • Roll With The Punches – if you splurge, avoid being riddled with guilt by simply reallocating funds from another category. Do it, and move on.
  • Age Your Money – Never spend money that’s less than 30 days old (i.e., you should be paying this month’s bills with last month’s paycheck)

 

What Refinancing Student Loans Does For Your Budget

Regardless of which platform you chose, it’s important to see spending in categories to help you understand where the majority of your paycheck goes. If you’re a recent college graduate or parent of a graduate, student loans can be one of the biggest categories in your budget. Refinancing student loans can give you a lower monthly payment, freeing up money for other categories. This helps you uphold the “Roll With The Punches” rule of reallocating money from one category to the other when “Whoops!” moments happen with your spending.

 

ELFI customers have reported saving an average of $309 every month and an average of $20,936 in total savings after refinancing student loans with Education Loan Finance.1 That’s a big chunk of change that can be added to one spending category or divided up among several, all while still making payments on your student loan debt.

 

On the other hand, if you finalize your 2020 budget and realize you have extra money in other categories, you can choose to pay down your student loan debt by making additional or larger monthly payments. This concept of overpaying can cut your loan repayment time in half.

 

>> Related: Should I Save or Pay Down Student Loan Debt

 

If you’re thinking about refinancing student loans to help with your 2020 budgeting, check out our Student Loan Refinance Calculator to see just how much you could save by working with ELFI. You can also review the benefits of student loan refinancing on to see how ELFI can work for you.*

 


 

*Subject to credit approval. Terms and conditions apply.

 

1 Average savings calculations are based on information provided by SouthEast Bank/Education Loan Finance customers who refinanced their student loans between 8/16/2016 and 10/25/2018. While these amounts represent reported average amounts saved, actual amounts saved will vary depending upon several factors.

 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

Should I Save or Pay Down Student Loan Debt?

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This blog has been prepared for informational purposes only and does not constitute financial advice. Always consult a professional for guidance around your personal financial situation.

 

Whether it comes as a check from grandma, a bonus from work, or a tax return, extra money in your bank account is a great feeling. However, it can be surprisingly difficult to decide what to do with that extra cash. You’d be tempted to spend the cash frivolously, like booking a much-needed vacation or splurging on eating out. But if you’re in debt, you know that money belongs elsewhere. The only question you should face when you come into a windfall is whether to contribute to savings or pay extra on your student loan debt. Luckily, that question is relatively easy to answer.

 

Save First. Pay Student Loan Debt Second.

Saving money—to a point—is necessary to ensure you’re prepared for unexpected financial emergencies. Car accident? Broken bone? Laid off? You need a “rainy day fund” so you can pay the bills when life challenges you without warning. By not saving, you could end up living on credit cards with interest rates that are likely two or three times higher than your student loan debt. Then you’re burdened with even steeper financial obligations to pay off. 

  

It’s recommended that you save at least six months of your current salary to be fully prepared for emergencies. Once you get your savings stockpiled, turn your attention to paying down student loan debt.

 

To explore why this is the case, consider savings accounts usually offer rates around 2%. However, your student loan debt likely comes with an interest rate of around 4%-7% interest if you have loans through the federal government. If you keep depositing money in your savings account instead of reducing your loan balance, you accumulate more debt (in interest owed) than you save. 

 

 Basic savings accounts are fairly safe—your balance only grows, as long as you don’t withdraw money from the account. The payoff for this safety is a lower interest rate. Low risk equals low reward. 

 

So, you might be thinking, “What saving options make me more money?” 

 

Related: Yes, You Need A Side Hustle

 

Are Stocks worth the investment?

Stocks are a popular option that is high risk and high reward. When you buy stock in a company, you own a piece of that company. The benefit for them is that your money is an investment in developing new products and other growth-based projects. The benefit for you is that your money could grow with the company. The downfall, however, is that your money can be depleted if the company’s stock takes a downturn. 

 

Stocks can also be an intimidating game since companies like Alphabet (Google) and Amazon generally sell for more than $1,000 a share. However, some companies like Robinhood are trying to make stocks more accessible to the everyday investor, highlighted with their soon to be released fractional share trading options. With the new feature, you can buy one-millionth of a share or just $1 worth of any stock.

 

Could I place savings in a CD?

A more middle-of-the-road option is a CD. Not to be confused with a compact disc, these Certificates of Deposit are savings accounts that are typically federally-insured and usually have higher interest rates than traditional savings accounts. The beauty of placing your money in a CD is that it becomes harder to spend your money frivolously since there are predetermined dates for withdrawal. Common terms are 3, 6, 12, and 18-months, with penalties assessed if money is withdrawn before the maturity date. 

 

Ready to Save But Short On Funds?

Saving and paying off debt is great…when you have the extra cash to do so. But not everyone has a wealthy grandma or job that comes with a bonus. Here are some quick ways to save.

 

Student loan refinancing through companies like ELFI* could free up more money by lowering your monthly payment through loan consolidation and a lower interest rate. In fact, customers reported saving an average of $309 every month and an average of $20,936 in total savings after refinancing student loans with Education Loan Finance.

 

Related: 7 Benefits of Refinancing Student Loans

 

You could also save hundreds of dollars a month after canceling unused subscriptions. Banks or apps like Truebill and Trim can help you find and cancel subscriptions that are unused or that you forgot you signed up for in the first place. These apps also connect to your bank account to make automated weekly money transfers into a savings account. With automated transfers, think small—just $25 a week can turn into $1,300 a year.

 

Apps like Acorns can make your investments even more simple by setting aside leftover change from purchases you make. With the Acorns debit card, the spare change from each purchase is placed in an investment account of your choosing. And when you shop via the Acorns app or Chrome Extension at 350+ retail partners, a percentage of your total purchase is deposited into your selected savings account. 

 

At ELFI, we work hard to help you reduce student loan debt with great student loan refinancing options. By refinancing student loans with ELFI, you can pick the payment plan and terms that fit your life. See what you could save with our quick, no-obligation quote.

 


 

*Subject to credit approval. Terms and conditions apply.

 

¹Average savings calculations are based on information provided by SouthEast Bank/Education Loan Finance customers who refinanced their student loans between 8/16/2016 and 10/25/2018. While these amounts represent reported average amounts saved, actual amounts saved will vary depending upon several factors.

 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

Don’t Bet the House: Dangers of Paying Student Loan Debt with HELOCs

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This blog has been prepared for informational purposes only and does not constitute financial advice. Always consult a professional for guidance around your personal financial situation.

 

By Caroline Farhat

 

If you’re struggling with student loan debt, you have likely thought of a multitude of ways to pay off your loans as quickly as possible. If you have a house with equity, one way you may have considered is applying for a home equity line of credit (HELOC). But before you sign on the dotted line, first consider the dangers of using a HELOC for student loans.

 

 What is a HELOC?

A HELOC is a line of credit you borrow from the equity of your house. You may borrow up to a certain limit, but you’ll have to repay the amount borrowed plus interest. Here’s what you need to know:

  • The interest rate on a HELOC may be variable or fixed, but the vast majority of HELOCs have a variable interest rate. 
  • The limit of how much you can borrow is determined by the value of your home and the loan amount on your first mortgage. Generally, lenders limit the amount of the HELOC to 85% of the appraised amount minus any other loans on the house. This means if your home is valued at $300,000 and you owe $200,000 on your mortgage, you have $100,000 of equity in the home, but you will be limited to borrow $55,000 for the HELOC. 
  • Remember there may be fees associated with obtaining a HELOC, from closing costs to transaction costs. These need to be taken into consideration when deciding whether a HELOC is the right choice for paying your student loan debt. 

 

Dangers of Using HELOC

  1. You’re putting your house at risk. Since your house is the collateral for a HELOC you risk losing your home to foreclosure if you cannot make the payments. If you have an unstable income or suddenly cannot afford the payments should the interest rate rise, you jeopardize losing your home. This differs from student loan debt in that student loans have no collateral. This is not to say that you get a free pass when you miss student loan payments. After 270 days of missed payments on your federal student loans, your debt goes into default, which will affect your credit score and may lead to the garnishment of wages. The federal government can even sue you and force you to sell your home, though this is less likely to happen than if you miss payments on a HELOC.
  2. You don’t have as much payment flexibility. If you ever have trouble making payments on your HELOC, it may be nearly impossible to change your payment options. However, with federal student loans, you have the option of deferment or forbearance. 
  3. Your payments can vary based on the market. Generally, a HELOC has a variable interest rate that can increase during the time of the loan, and in turn, increase your payments. There is no predicting if or when your interest rate may rise. Typically HELOC interest rates are based on the prime rate which is affected by the market. While your payment could decrease, it could also increase. Although there is typically a cap to the interest rate, it can vary greatly and be as much as a 15% difference from your initial interest rate.   

The bottom line is the danger of using a HELOC to pay off student loan debt is you are taking an unsecured loan, your student loan, and making it a secured loan, by putting your house as collateral. This is dangerous if your financial situation changes and you are unable to make the payments.    

 

Better Ways to Pay Off Student Loan Debt

There are many other options to consider before you decide to take out a HELOC to pay for your student loan debt. Some options require little to no extra time to help pay off your loans quicker. You could consider the following: 

 

1. Refinance Student Loans

Refinancing student loans* may be a great option to pay them off quicker. You could be eligible for a lower interest rate which can save you thousands of dollars over the life of the loan. You can see just how much you can save each month, and over the lifetime of your loan, by using our student loan refinancing calculator.

 

2. Consider a different repayment plan

Unless you selected a different repayment plan when your grace period ended, you are making student loan payments based on the 10-year standard repayment period. If you need to change your payment plan, you may be eligible for different plans, such as income-based repayment and graduated repayment. Contact your lender to find out what options are available to you.   

 

3. Start a Side Hustle

A side hustle is an additional job that you hold outside of your normal employment. A side hustle could be a side business you start to sell items you hand-make, dog walking, babysitting, and endless other options. Depending on your side hustle, you could be earning serious money to make extra payments towards your student loans. 

 

Related: Yes, You Need A Side Hustle  

 

4. “Found money” can be used as an extra payment

Ever been given cash as a gift, received a cash rebate or earned cashback on your credit cards? All those could be considered “found money,” money you weren’t expecting to find but received. Take that found money and make an extra payment toward your student loan debt. Any extra payment towards your student loans can help pay it off quicker, just remember to apply the extra payment towards the principal of the loan.  

 

5. Auto-debit your student loans

Some lenders allow you to set up auto-debit and in return give you an interest

rate reduction, typically between 0.25-0.50%. It’s important to note that some lenders, like ELFI, build in cost savings based on your good credit, rather than applying a discount for auto-debit, so don’t worry if your lender does not have this option. You might automatically be saving more money just by having good credit. 

 

Bottom Line

Obtaining a HELOC to pay off your student loans is a risky move. As you can see, you have many other options to explore before betting your house to pay down your student debt.    

 


 

*Subject to credit approval. Terms and conditions apply.

 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

U.S. Cities With the Most Student Loan Debt

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By Kat Tretina

Kat Tretina is a freelance writer based in Orlando, Florida. Her work has been featured in publications like The Huffington Post, Entrepreneur, and more. She is focused on helping people pay down their debt and boost their income.

 

You’ve heard it on the news: student loans are a national epidemic. According to Experian, Americans carry $35,359 in student loan debt, on average. However, where you go to college and where you live can have a big impact on how much you need to borrow to pay for school and how much you’ll owe after graduation.

 

10 Metropolitan areas with the highest levels of student loan debt

While student debt is pervasive, it affects some metropolitan areas more severely than others. Experian reported that people who live in or near college towns tend to have the highest student loan balances.

To understand where education debt is the worst, we looked at 10 cities with the highest average levels of student loan debt based on Experian’s latest data.

 

 

10: Charlottesville, VA

Average Student Loan Debt: $42,476

 

Charlottesville is home to a number of universities and colleges including the American National University and the University of Virginia.

 

Among people aged 25 years and up, 54 percent have a bachelor’s degree or higher. That’s far greater than the 37 percent of all Americans who have earned a bachelor’s degree or higher.

 

The large number of people with a degree is likely why people working in Charlottesville earn more money than the typical person, too. The median income for all Americans is $32,838. In Charlottesville, that number jumps to $36,400.

 

The biggest industries in Charlottesville are management and business services, accommodations and food service, and sales.

 

Related: The Average Cost of College

 

 

9. Atlanta-Sandy Springs-Marietta, GA

Average Student Loan Debt: $43,290

 

There are dozens of universities in the Atlanta area, including Georgia State, Emory University, and Morehouse College.

 

Atlanta residents tend to be highly educated; over 43 percent of its population has a post-secondary degree. That benefit turns into higher salaries. The median earnings for the area is $38,400.

 

Finance, healthcare, and manufacturing are three of the biggest industries in the region. The largest employers, based on employee headcount, are Northside Hospital, The Home Depot, Emory University & Emory Healthcare, and Delta Air Lines.

 

 

8. San Francisco-Oakland-Fremont, CA

Average Student Loan Debt: $43,674

 

Many well-known and expensive universities are located in or near San Francisco, such as Stanford University and the University of California, Berkeley.

 

The Bay Area in California — which includes San Francisco — has grown by 600,000 people since 2010. That growth is because the San Francisco metropolitan area is the base for many major companies, including Salesforce, Wells Fargo, and Uber.

 

Because of the prestigious employers in the area, San Francisco has much higher levels of degree attainment. Over 53 percent of the population has a post-secondary degree, and the median earnings are $50,900.

 

Related: Best Cities for Young Professionals

 

 

7. Washington D.C.-Arlington-Alexandria, DC, VA, MD

Average Student Loan Debt: $43,797

 

The Washington D.C. area has many elite universities and colleges, including Georgetown University and American University.

 

The biggest industries are government, public school administration, and healthcare. To succeed in these fields, you need higher education, so it’s no wonder that over 58 percent of the population has received a college degree.

 

The median earnings are $56,700. However, the cost of living in Washington D.C. is quite high, so people may struggle to afford both their living expenses and student loan payments.

 

 

6. Santa Barbara-Santa Maria-Goleta, CA

Average Student Loan Debt: $44,294

 

If you live near Santa Barbara, you may have gone to school at the University of California, Antioch University, or Westmont College.

 

The top industries in the area are in education, hospitality, and healthcare. Major employers include the Four Seasons, the University of California, and Pacific Diagnostic Lab.

 

About 52 percent of the population has a college degree, and the median earnings are $38,800.

 

 

5. Gainesville, FL

Average Student Loan Debt: $44,508

 

Gainesville, a city in northern Florida, is well known as the home of the University of Florida. It’s a relatively small college town, with just over 133,000 residents.

 

Over 52 percent of Gainesville residents have a college degree. However, the median income is lower than the national average, mostly because the biggest employers are in the service and retail industries, which can have lower wages. In Gainesville, the median income is just $30,800, which can make repaying your student loans difficult.

 

 

4. Santa Cruz-Watsonville, CA

Average Student Loan Debt: $45,396

 

The Santa Cruz area has one major college: The University of California-Santa Cruz. It’s also one of the region’s biggest employers, along with local government and administration offices and hospitals.

 

More than 50 percent of the metropolitan area’s population has a bachelor’s degree or higher. The median income for Santa Cruz is $40,200.

 

 

3. Ann Arbor, MI 

Average Student Loan Debt $45,668

 

Located outside of Detroit, Ann Arbor has a number of universities in it. The largest is the University of Michigan, which has over 28,000 undergraduate students.

 

Besides being the biggest school, the University of Michigan is also the area’s top employer, followed by Trinity Health and Ann Arbor Public Schools.

 

Ann Arbor has the highest percentage of college educated people on this list; 72 percent of the population have a bachelor’s degree or higher. With so many people getting degrees, it’s no surprise that Ann Arbor is among the top three in terms of student loan debt.

 

Read More: 5 Financial Tips for After You Refinance Student Loans

 

 

2. Corvalis, OR

Average Student Loan Debt: $46,164

 

Oregon State University is based in Corvalis, with over 24,000 undergraduate students enrolled. Corvalis is a relatively small town, with just over 50,000 residents, so the University is a major economic driver for the area.

 

Oregon State University is the biggest employer, followed by the Good Samaritan Regional Medical Center and Hewlett Packard.

 

Corvalis has a remarkably high number of people with college degrees. Over 61 percent have a post-secondary credential. However, the median earnings are relatively low; it’s just $36,100.

 

 

1. Durham, North Carolina

Average Student Loan Debt: $47,955

 

Known for its technology and educational facilities, Durham has a number of elite universities in or near the city. Some of the biggest schools include Duke University, the University of North Carolina at Chapel Hill, and North Carolina Central University.

 

Those schools can be quite expensive. A single year at Duke University for an undergraduate student can cost $78,608 before financial aid. With such steep tuition fees, it’s no wonder that Durham leads the country in student loan debt.

 

Over 48 percent of the population has at least a bachelor’s degree, and the median earnings are $37,000.

 

Paying Off Your Student Loans

Whether your city is one of the 10 cities with the most student loan debt or not, paying off your education loans is key to your financial freedom. If you’re looking to pay off your debt as soon as possible and save money, consider student loan refinancing.

 

You can use ELFI’s Find My Rate tool to get a rate quote without affecting your credit score.*

 

 


 

*Subject to credit approval. Terms and conditions apply.

 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

Don’t Sweat the Small Stuff: The Income vs. Savings Approach to Building Wealth

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By Caroline Farhat

 

We all remember that infamous Australian millionaire who declared that millennials can’t afford to buy homes because they’re wasting all of their money buying avocado toast. Similarly, we’ve probably all lost count of the number of times we’ve heard that we need to cut back on our Starbucks® habit in order to be more financially successful. 

 

While buying avocado toast every morning might not be the wisest choice for your food budget, it’s most likely not going to hold you back from having a healthy bank account either. In fact, if you’re so busy pinching pennies on your daily cappuccino and not looking at how you can save and increase your earnings in bigger areas, you’re probably wasting both your time and money. 

 

Stop Skipping Your Cappuccino and Refinance Instead

 

1. How refinancing can save you money on your mortgage

According to the Bureau of Labor Statistics, housing is the largest expense for Americans, taking up about 33% of income and $20,091 per year. For homeowners, these figures include the cost of the mortgage, mortgage interest, property taxes and insurance, and expenses for maintenance and repairs. 

 

When you apply and pay for a mortgage, you get an interest rate based on your creditworthiness, the size of your down payment, loan term and type, and economic factors. For example, in 2000, the average mortgage rate was 8.05%. In 2018, the average mortgage rate was 4.54%. As you can see, market conditions can make a big difference in the interest rate you lock-in. The good news is that you have the ability to lower your mortgage rate through refinancing, well after you sign on the dotted line. 

 

Mortgage interest, and its effect on your monthly housing bill, can be easily forgotten — until you start crunching the numbers. Let’s walk through two scenarios — one in which you don’t refinance and one in which you do refinance.

 

Scenario 1: No refinancing

You buy a $300,000 home and put down 20% ($60,000). You get a mortgage for $240,000 with a 4.5% interest rate. Over the first year, you will have spent $10,720.79 on interest payments alone. Over the entire 30-year mortgage term, you will have spent $197,776.11 in total on interest payments. 

 

Now, let’s see what happens if you refinance your mortgage.

 

Scenario 2: Refinancing

You buy a $300,000 home and put down 20% ($60,000). While you started with a 4.5% interest rate, shifts in the economy have caused interest rates to drop and you’re now able to refinance to a 3.7% mortgage rate. By doing so, you will save over $12,000 over the life of the loan. To put this in perspective, you’d have to cut back on approximately 3,000 drinks at your favorite coffee joint to save that kind of money. 

 

If you currently have a mortgage, put your numbers into this refinance calculator and see just how much you could save. 

 

2. How to save by refinancing student loans

The Bureau of Labor Statistics also reports that the average American spent $1,417 on education in 2018. If you’re currently reading this blog, you are likely dealing with a much larger number than that. If you have at least $5,000 in student loan debt, student loan refinancing could be extremely beneficial for you. 

 

Similar to mortgages, you can refinance student loans and potentially save thousands of dollars over the lifetime of the loan. ELFI customers reported saving an average of $309 every month and an average of $20,936 in total savings1.

 

The first step to saving money on your student loans is to determine whether student loan refinancing* is the best option for you. In a small number of cases, refinancing is not the optimal option. But for most student loan debt holders, it is an excellent way to save money both in the short term and long term. Our student loan refinance calculator allows you to see what you could save in your particular situation. Let’s walk through an example.

 

Scenario 1: No refinancing

You have $60,000 in student loans with an interest rate of 6.8% and are on a standard repayment plan of 10 years. You pay $690 per month and never consider refinancing. In total, you will pay $82,857 for your initial loan of $60,000. Over $22,000 of that amount will be to interest payments alone.

 

Scenario 2: Refinance your student loans

You have $60,000 in student loan debt with an interest rate of 6.8% and a monthly payment of $690. You’re eager to optimize your finances and decide to refinance your student loans to a lower interest rate, saving up to $18,000 over the life of the loan. If you refinance into a shorter loan term (such as a 5 or 7-year term), you will save more on interest over the life of the loan. Alternately, you may consider stretching out your terms to lower your monthly payment. This will likely still save you money over the long term, but be sure to crunch the numbers before you make a final decision on your refinancing terms.

 

Side Hustle or Climb Your Way to Success

Saving on big-ticket items like your housing costs or student loan debt is just one approach to building wealth. After you have taken advantage of all the saving opportunities available to you, it’s time to turn your attention to increasing your earnings. Here are a few ways you can bolster your bank account:

  • Ask your current employer. If you’re gainfully employed and a top-performer, speak with your boss about the potential for a promotion, raise, or bonus. It’s best to come into these types of conversations with a concrete strategy and multiple examples of positive ways you have impacted the company. Glassdoor has a good guide on how to prepare for this conversation. 
  • Find a new job. Long gone are the days people spend decades at the same company. While “job hopping” may have had a negative connotation in the past, many career experts actually encourage people to switch jobs more frequently in order to get a larger salary and more advanced job title. According to this Fast Company article, “workers who stay with a company longer than two years are said to get paid 50% less.” Money, of course, isn’t everything. But if you’re feeling stagnant both in learning and money, it’s probably time to brush off your resume and start looking for a new position.
  •  Start a side hustle. It’s reported that more than 1 in 4 Americans currently have a side hustle. Beyond the monetary benefits of having a gig outside of your normal 9-to-5, side hustles are also a great way to hone or discover a new passion. Side Hustle Nation has an extensive list of ideas that you can start quickly. 

 

Bottom Line

It pays (literally) to keep your eye on the big stuff. That’s not to say that you shouldn’t ever watch your pennies. Smart spending habits still reign supreme. Just don’t sweat the small stuff so much that you miss out on potentially huge savings.

 


 

*Subject to credit approval. Terms and conditions apply.

 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

 

1Average savings calculations are based on information provided by SouthEast Bank/Education Loan Finance customers who refinanced their student loans between 8/16/2016 and 10/25/2018. While these amounts represent reported average amounts saved, actual amounts saved will vary depending upon several factors.

Yes, You Need a Side Hustle

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Side hustle. It’s a relatively new phrase, but a concept that’s older than you think. It’s simply a second job that helps people make ends meet or earn extra cash to supplement retirement plans, pay off student loan debt, save up to buy a car, etc. You might also hear these jobs referred to as gigs, which constitute the gig economy.

 

Why the Popularity?

If you wonder why you’re hearing so much about side hustles and the gig economy, it’s because these concepts have exploded in popularity. The U.S. Bureau of Labor Statistics estimates that 55 million people work in the gig economy, which is more than 35% of the country’s workforce. “Side hustlers,” as they’re called, take the form of teachers who write blogs for major companies, stay-at-home moms who moonlight as Uber® drivers, retirees who tutor school-age children, or even college students who design logos for local businesses.

 

But side hustles aren’t limited to these more typical archetypes. Even high-earning, highly skilled professions offer ample opportunities for “side hustling”. For example, the gig economy has increasingly penetrated the healthcare industry – doctors and nurses have the ability to work in temporary positions called “locum tenens” to fill staffing needs at healthcare facilities. These positions, often worked during shift downtimes, allow healthcare professionals to have more flexibility and control of their schedule while earning supplemental income. High-end software developers at major technology brands can also benefit from the gig economy, using sites like Upwork to maximize the return on their skills and to explore new projects.

 

A study on the Gig Economy & The Future of Retirement found that of people with a side hustle, 49% over the age of 55 are using it to save for retirement and 33% are using it to pay off student loan debt. Regardless of the reason, the answer to the question, “Do I need a side hustle?” is almost always, “Yes!” 

 

Check out the following scenario to see just how valuable a side hustle can be. The average student loan debt in America is around $37,000 with a loan term of 10 years and monthly payments of $380 a month. If you made an extra $100 a month ($1,200 a year), you could make three extra payments a year, helping you pay down your student loan debt up to two years early! If you want to see how much you can impact your loan with a side hustle, check out our student loan refinance calculator. 

 

Not only can you bring in extra income with a second gig, you can also diversify how you make that money. In other words, if you lose your full-time job, you will still have a way to pay bills.

 

Having a side gig is also a way for you to indulge hobbies or hone talents, giving more meaning to your work than perhaps your regular nine-to-five job. If you’re really good with computers, have a knack for photography, possess a knowledge of HVAC systems, or if you’re just really good at IKEA® assembly directions, you can pick up a side hustle by hawking your services on sites like Thumbtack®, Nextdoor®, TaskRabbit®, or Fiverr®.

 

The ideal hustle would allow you to “make money while you sleep.” It sounds hokey, but if you don’t have to trade working hours for money, you can reach your extra income goals to pay off student loan debt without sacrificing your full-time job, family, or social life to do so. These holy grail side hustles take the form of rental properties (that you pay someone else to manage), stock market investing, renting a room or parking space, publishing a book, creating an app, or other similar ideas that require little time to maintain.

 

One such example is with ELFI’s Referral Program. Simply sign up and create a personalized referral link to share with friends or family. When someone decides to refinance their student loans using your link, you’ll get a $400 referral bonus check and your friend will receive a $100 credit toward the principal balance of an approved Education Loan Finance loan1. There’s no limit on the number of people you can refer.

 

Downfalls of Side Hustles

While we started this blog by saying, “Yes, you need a side hustle,” there are several downfalls that you should be aware of. Sure, the hours for side gigs are flexible, but these jobs also don’t come with employer benefits. This means there is no safety net of unemployment claims should you not be able to find enough work. Also, if you don’t have a clear, effective contract and invoicing system set up, payment can get delayed or—even worse—lost in the shuffle. If you don’t work with honest people or established companies, both can run out of money or just simply disappear without paying money owed.

 

You also need strong personal motivation to work a side hustle. Like most jobs, side hustles rarely just fall profitably into your lap. You should realistically expect to spend a few hours a week promoting yourself and following up on leads. You need to be organized and disciplined to avoid double-booking yourself and to get the work done by agreed-upon deadlines.

 

You’ll also need to be diligent when it comes to taxes2. The money made from your side job will need to be reported on a 1040 Form at tax time. If you fail to report your earnings, you might find yourself subject to tax assessments or penalties. On the plus side of tax time with a side gig, you may be able to deduct certain expenses like car mileage related to your business, necessary equipment, or even subscriptions to business-related organizations.

 

When it comes to side hustles, there’s no need to quit your day job to earn extra cash. The benefits outweigh the downfalls, and a bonus gig can actually benefit your day job by giving you additional skills and insights or by helping you make connections with clients you wouldn’t otherwise meet. You can work as little or as much as you’d like on your own schedule to pay down debts or save for big expenses.

 

Curious about how much you need to earn with a side gig to pay down your student loan debt? First, see how much you could save by using our Student Loan Refinance Calculator*. Once you know what your monthly payment could be, you can set a realistic target for your extra income. The Student Loan Refinance Calculator will show you your current vs estimated monthly payment, as well as estimated monthly and lifetime savings.

 

*Subject to credit approval. Terms and conditions apply.

 


 

1Subject to credit approval. Program requirements apply. Limit one $400 cash bonus per referral. Offer available to those who are above the age of majority in their state of legal residence who refer new customers who refinance their education loans with Education Loan Finance. The new customer will receive a $100 principal reduction on the new loan within 6-8 weeks of loan disbursement. The referring party will be mailed a $400 cash bonus check within 6-8 weeks after both the loan has been disbursed, and the referring party has provided ELFI with a completed IRS form W-9. Taxes are the sole responsibility of each recipient. A new customer is an individual without an existing Education Loan Finance loan account and who has not held an Education Loan Finance loan account within the past 24 months. Additional terms and conditions apply.

 

2This blog has been prepared for informational purposes only, and does not constitute tax or financial advice. Please consult your tax advisor for guidance on your personal tax situation.

 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.