As a debt free individual, a lot of clients and people in general have asked me for my opinion on private loans in their pursuit to tackle them effectively. Debt freedom is a beautiful concept to where you can invest in yourself freely without worrying about the fact that you have to pay off debt once more. Obviously, there is a difference between federal and private student loans, and there’s reason why I’ve been getting asked consistently on how to handle them. Although private loans are more dangerous, we see an overlap in both types of loans. Without further ado, let’s dive into it!
It’s possible to pay off private student loans!
One thing I want you to understand is that getting rid of private loans, whether you pay them off or get rid of them through another method is possible. Our society primes us to believe that paying off private student loans isn’t that reasonable, because of the negative language it gets. Private loans are dangerous and should be respected as such, but understand that it is definitely possible to pay off.
If you’re of a doubtful mindset, I encourage you to pivot your perspective. Before continuing to read, this is a required step. You must come to terms with yourself and understand and walk in confidence that you can and will get rid of your private student loan debt. Everything starts with the mindset, and this is no different. Although there’s a negative outlook on private student loans, I’m telling you to understand that your journey will be possible when you implement the right mindset shift towards it.
Also, given the fact that federal loans have been paused for now, it would be a disservice not to take this opportunity to tackle the private student loans since you won’t get a break. Wherever your focus flows is where your energy grows, so focus on your private student loans and pay as much of those off as you possibly can. No matter how much your balance is in your private student loans, please do not give up and keep going. Optimize your budget and make sure your money tendencies align with the person you’re trying to be in order to pay them off efficiently.
Additionally, we have to think logically. There’s a pause on the need to pay federal student loans, so why can’t we attempt to do anything about our private student loans? The private loans are not as forgiving, but you never know what can happen if you call your specific private student loan lender. Also, please understand that the person on the other side of the phone is simply doing their job. I say that to say that you will be the most emotional about your student loans, whereas they will likely be logical since it’s not their own bill.
With that being said, don’t be afraid to ask for what options your lender can provide you with. Don’t step into the phone call like they’re doing you a favor. Step on the phone confidently like they owe you money, because they owe you your time and your stress. You’ve been working diligently for school for so long and stressing out, so they should feel obligated to work with you. If the available options you’re provided don’t suffice your needs, then look into refinancing and seeing if the numbers make sense for your particular situation.
Refinancing your private student loan debt may be a solution for you to make your journey easier. If you’ve exhausted other options, look into some ways you can refinance your student loan debt. Everyone’s own situation is different, but this may be a solution for you. If your credit isn’t where it needs to be, look into a co-signer. Your credit is an imperative piece of the application process when it comes to your rates when you decide to refinance your student loans.
If you can repair your credit, it would help you significantly. A few credit score increases can be the difference between paying off a huge percentage in interest versus a more manageable one. This would not only save you time, but it would save you energy and most importantly to a lot of people, it would save you money. At the end of the day, you have to do what is best for your own particular situation, but please understand that you can and will do it and become debt free. It’s real.
Paying off private student loans is possible. Despite the disrespectful rates, you can look into seeing if your student loan debt lenders will work with you in terms of your specific situation. It never hurts to ask, because the worst that can happen is hearing a decline to your request. It wouldn’t be any different from doing nothing at all. Also, handling private student loans can be accomplished through refinancing. Do your due diligence and figure out what makes the most sense for your particular situation, but most importantly, never give up!