For all parents, it’s disheartening to see your child struggling out of debt. Your child must be finding it tough to cope with the financial challenges at an early age. Paying off a student loan is seemingly an uphill task for your child.
While you’re nearing your retirement age, it could be tough for you to spend much towards helping out your child without saving anything for your golden years. Luckily, you may consider helping your teen by making a few small contributions towards repaying his loan from time to time.
1. Try Replacing Your Gifts
Everyone needs to determine a budget for special occasions like birthdays and Christmas. You may have planned certain gifts for your teen’s birthday, while he’s still struggling with his student loan. Given a choice, he might want you to spend it towards lessening his debt burden. You may reach out through your teen’s servicer and pay off the loan as an authorized servicer. It won’t be of much trouble at all.
2. Match the Repayments
It helps your child if you can double down on payments with your kids. This way, they can pull out of debt much faster as the repayment process gets speeded up. You can motivate him if it’s possible for you to match his repayment every month instead of making it for once or twice a year. Apart from pulling down his debt burden, you can teach him to make significant progress with his financial situation.
3. Sign up for Reward Programs
Several daily reward programs have come up in recent times. These programs can help you save a portion of your daily expenses and spend it towards student loan repayments. Sign up for the rewards program and link your debit or credit cards. You’ll achieve cash back while shopping online, dining out, traveling and doing a host of other things. Don’t forget that these are your regular expenses and you can’t avoid them. You may cash out your rewards via check or utilize them for paying off a student loan online. Paying off student loans has never been easier for your child.
4. Make Small Contributions
The latest industry survey projects that about 46% of college graduates would give up saving for their future, 59% would sacrifice their vacation plans, and about 58% will postpone getting a new car their attempt to repay their student loans. If you can’t match their loan repayments, you may even choose to contribute smaller amounts in numerous ways. The free cash that your kid achieves lets out a breather for him to catch up with his student loans. You may consider assisting him with his toiletries, buying clothes for his summer wardrobe, and getting his grocery store card. Small gestures like these can mean much for your kid and set the foundation for him to turn more responsible.
5. Suggest Side Hustles
Kids are often thrilled when they see extra cash coming out of some side hustle opportunity. By doing this, you can help your teen without even requiring to spend a dime. It could be a part-time summer job or a promotional campaign that pulls out an extra income for him. It often helps even when your child finds a steady source of earning. However, it’s essential that you discuss your proposal with your kids in details to be sure that you both are on the same page. Side hustle gigs are an excellent means of repaying loans much faster than you even imagine.
There are many ways in which you may help your kids to pay off their student loans. This article must have thrown some light on areas that inspire you to assist your teen in paying off his loan without really affecting your financial standpoint. You’ll certainly find out something that will work in your child’s interest too.