Student debt has become a recurrent problem. You will find every 3 in 5 persons having student loan debts and making hard efforts to repay those. Your kids too can become one of them if they don’t pay back their loan within the given time.
Being a parent, it’s disheartening to see your kids bogged down in student loan debt. You won’t want your children to be in such a difficult financial situation at such a tender age. Isn’t it?
Simple tips to help kids repay their college debts
Are you wondering how to help your kids repay their student loan debt? Here’s what you can do to help your children pay off their student loan debt.
1. Stop giving gifts
Instead of giving gifts to your kids on birthdays, Christmas and New Year contribute that amount in paying off your kids’ student loan payment. For instance, if you spend $25 on a gift, then stop doing it from now onward. Rather, put that $25 toward your children’s student loan payment.
2. Double their payments
If you can match your child’s payment at least every one or two months, it’ll be extremely helpful. For example, if your kid is paying $450 toward his/her student loan payment, give them another $450 to repay the loan. So, instead of paying $450, they’re paying $900. That’s double the original monthly payment.
Rather than giving money to your kids for holidays and weekend trips, keep that money to support them toward paying off their student loan debt. This way, you can motivate them to repay their debt fast and become debt free soon.
3. Choose Upromise
By signing up for Upromise, you can help your kids pay down their student loans. It gives you reward points, which are aimed at college savings plans and repay student loans. You’ll get a cashback on various purchases like shopping, groceries, online shopping, dining, and so on. In short, it’s a hassle-free way to earn money and help your children with their student loan.
4. Buy basic necessities for them
Another way to help your kid with his/her student loan payment is by purchasing the items he/she needs the most. For instance, you can buy your kid new clothes, toiletries, groceries, and so on, or if your child lives far from you, send him/her some money for the monthly expenditures.
5. Set good examples for them
Your kids will learn from whatever you do. For instance, if you pay your bills on time and have never defaulted on your bill payments, your kids will learn how to become financially responsible. So, be watchful of your activities. Or, you can teach your kids some teach your kids some money lessons so that they can become good money managers.
A word of caution: It’s good that you want to help your kid repay his/her student loan. But, you must not hamper your financial life while doing it. Always analyze your financial situation well before helping your child financially.
This is not all that you can do to help your kids. There’s something more you can do for them. Remember, searching a suitable job is also important. It’ll provide your kids money, which is needed to pay off the loan.
How to help kids in their job search
To become a financially independent person, it’s important for your kid to choose the right job. Is your child a fresh graduate? If so, then help him/her in finding a suitable job. How? Check out the points below:
1. Take them to career counselors
Selecting a suitable job is not so simple. If your child is confused about which job he/she should choose, take help from a career counselor. Remember, a career counselor would provide all the information needed for a job search and will also prepare your kid for the interviews.
2. Help them make accounts on the online job portals
Online job portals like LinkedIn, Indeed, Glassdoor, etc. are cheap and convenient ways to search for a job. Moreover, they’ll provide ample options. Help your kids open accounts and fill their academic qualifications and other details on various job portals. You can also help by informing them about various company visits or career fairs suitable for them.
3. Share your networks with your kids
To understand this point consider this example – If you are a doctor and your kid is also pursuing the same, then after he/she has completed the education, refer few of your patients to your child or you can tell your fellow doctors about your child. This way, by sharing your networks, you can help him/her grow both financially and professionally.
4. Teach your kids some professional behavior
Apart from helping your kid with his/her college debt, teach them something more like money lessons, professional behaviors, and so on. Prepare your kid for the professional life like the significance of punctuality, how to dress up for an interview, how to behave in a professional environment, etc. In short, make your child aware of the nitty-gritty of the professional life.
After all’s said and done, as a parent, you must guide your kids through thick and thin and support them throughout their lives.