2021 was the year of booming small businesses. As of September, more than 4 million people filed applications to start a new business, compared to 3 million the previous year.

But not everyone has been able to start the business of their dreams, and some are finding their new business expenses going elsewhere each month.

Student loans plague millions of Americans, which can affect a small business owner’s ability to not only pay for their business, but most banks are even wary of lending to small business owners with student loan debt.

However small business owners can work on paying off their student loan debt and accomplishing their business dreams with these easy re-payment tips:

Consider your student loan options

If you’re struggling to pay your student loans, you don’t need to stay silent.

Reach out to your lender to find out what your options are. There are programs and plans that may fit your situation that can help you pay off your student loans and even provide some relief.

However if you find yourself in a better financial situation then when you first took out your student loan, refinancing may be a good option for you and can help you get a lower interest rate.

Figure out necessary expenses and where you can save

By skipping your daily $6 Starbucks coffee and making coffee at home, cooking at home an extra night rather than eating out, and looking for sales, you can save extra money each month that can be put toward your student loan debt. It adds up quickly.

Organizing your monthly expenses into necessities and pleasure can truly help your see where your money is going each month, and what you’re willing or able to cut down on that can help you become debt-free sooner.

For small business owners, this is especially important. Finding discounts and sales and buying items in bulk for your business can cut costs quickly and help your prioritize where your money goes.

Update your lender with your financial situation

Some student loan borrowers don’t realize that the amount they pay each month throughout their lifetime CAN change, so don’t feel stuck.

By contacting your lender or the government, they can help change the amount you owe each month to better fit your financial situation.

This way, you won’t go into default on your loans and can continue to pay them off without feeling overwhelmed.

Take a look at how your finances have changed in recent years, you may even find that you can be paying more each month than you realize and by paying more than the minimum, you can get out of debt quicker.

Author

Mary Jo is a business partner and Managing Partner at Yrefy. She has over 20 years of experience working for companies in the education and student loans space. She’s held roles at Vocado, LLC, and was responsible for understanding and managing thousands of business and technical software requirements along with federal compliance (Department of Education requirements) for the development of an automated federal financial aid software processing student, parent, and veterans’ administration loan programs.

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