Being a single parent means you are solely responsible for your home’s income, resources, time, and even act as the support system for your kids. Basically, you need to step up and figure out how you are going to make ends meet for your household. You have to take care of all the fixed costs like rent and even the student loan payments. All of these expenses on a single parent, mom, can really strain your budget.
As a single mom, struggling with any kind of loan can be a real bummer. There even comes a time when you feel like there is no way to get ahead of the situation. But, with a little creativity, grit, and capability, you can solve this challenge and rid yourself of these stresses. Student loans are known to be particularly stressful to repay especially for the single moms. This article, however, aims to provide you with 5 easy ways to deal with your quick loans and student loans. So, want to create yourself some breathing room in your budget each month? Keep reading and you definitely will.
1. Refinance student loans
Single parents are known to always want to economize and keep expenses as low as possible. Well, refinancing to the lower student loan rates is one very effective method of ensuring you significantly cut costs on your student loan.
You find that the current student loan rates are higher than what they used to be years back. Typically, they go for between 5.00% and 6.00%. Rates like these can really weigh up on a single parent’s student loan repayment. And refinancing will help you get a lower rate. Meaning your debt will cost less than the initial amount.
Just ensure to carefully compare all of your options before you choose any refinance option. And also remember that to qualify for refinancing, you need to have a steady income and a good credit.
2. Income-driven repayment plan
Enrolling in an income-driven repayment plan is also another great option. Unlike refinancing, this option is meant to preserve your loan’s federal status and lower payments as well. Forbes reports that single mothers are more prone to unemployment. Plus, single mother’s incomes are usually about a third less when compared to the combined income of married couples.
Enrolling in an IDR ensures that your monthly student loan repayments match your cost of living and income. Meaning that you don’t have to stress about where to get the money from facing fines and penalties. IDRs can go up to $0 if you are unemployed.
3. Forbear or defer student loans
Forbearance and deferment are the two options that single moms who are looking for a break from the student loan payments can go for. So, basically what these options provide is that they ‘pause’ your student loan payments for some time. So that you, the single parent, can get back to your feet financially before you have to resume with the repayments. These two options can really be a stress reliever especially when you are financially strained. Even so, you still need to bear in mind that the loans, even though you will have ‘paused’ them, will still keep accruing interests which will increase your overall costs.
4. Increase your income
Another logical option to go for is to increase your overall income. As a single parent, you will have to work a lot harder to ensure that your finances stay in check. So, maximizing your take-home pay should be one option on the table. This is, however, easier said than done in most instances. Especially when you are balancing your work life with your family life. But sometimes, it may be the only way to get yourself out of a financial crisis especially with your student loans.
5. Use public assistance
You can also take some time and research some of the benefits and support that is available. Research the programs in your area that can help you get the resources to cover for your living costs. Some of the programs include Supplemental Nutrition Assistance Program, Women, Infants, and Children, etc. You can use them to ease your money anxiety.
Remember, single parenthood is demanding. And you will have to start doing things differently. Especially the things that directly impact your finances if you want to manage your student loan payments.