How To Pay Off Student Loans Faster by Starting a Side Hustle

Do you want to pay off your student loans faster?

Paying off student loans can feel like a big challenge. But there’s a way to speed up the process if you’re up for it – and it’s what I did so that I could pay off my $40,000 in student loans in just 7 months.

And, that is starting a side hustle! Starting a side job can give you extra money to put toward your loans.

You can use your free time to make more money and pay off your student debt faster. With some hard work, you can say goodbye to your student debt more quickly than you thought possible.

How I paid off my student loans in 7 months with side hustles

The reason I’m writing this article is because I personally paid off my student loans very quickly, mainly due to side hustles. And thanks to that, I saw a ton of benefits, like financial freedom and no longer having a big monthly debt hanging over my head.

Paying off $40,000 in student loans in just 7 months might sound impossible, but it’s not! Here’s how I did it:

First, I made a clear plan. I wrote down my total debt and broke it into smaller goals. This helped me stay focused.

Next, I cut my expenses. I got roommates, cooked at home, and avoided unnecessary shopping (I didn’t really have any time to spend money anyways, because I was using pretty much every spare minute on side jobs). Every dollar saved went to my loans.

The real game-changer was side hustles. I tried everything (you can see a full list at I’ve Done Over 20 Side Hustles in My Life: Here’s What I Think of Each):

• Starting a blog
• Reselling items on eBay and Craigslist
• Mystery shopping
• Taking online surveys
• Focus groups
• Writing for other websites
• Taking on roommates
• Virtual assisting
• Freelance social media management

And more.

I put all my extra earnings directly toward my student loan debt. Right as the income came in, I would immediately apply it toward my debt. This way, I wasn’t tempted to spend the money on other things.

I also looked for ways to lower my interest rates. By setting up automatic payments, I got a small rate reduction. It wasn’t much, but every bit helped!

The key was staying motivated. I reminded myself of the freedom I’d have once the loans were gone. It wasn’t easy, but the feeling of making that final payment was amazing!

Remember, you can do this too. Start small, be creative with making extra money, and stay committed to your goal. Before you know it, you’ll be celebrating your own debt-free day!

Why you should start a side hustle if you have student loans

If you’re serious about paying off your student loans faster, starting a side hustle can be a game-changer.

It’s a flexible way to earn extra income, reduce your debt, and even save on interest payments. Plus, the skills you gain can open up new opportunities for your career or personal growth.

Extra income to pay off loans

A side hustle gives you more money to put toward your student loans. This extra cash can make a big difference in paying down your debt.

Here are some popular side hustle ideas:

• Freelance writing
• Dog walking
• Online tutoring
• Selling items on eBay
• Virtual assistant work

Even a few hours a week can add up. Put all your side hustle earnings toward your loans to see faster progress.

Less interest

Paying off your loans faster means you’ll pay less interest over time. This can save you hundreds or even thousands of dollars. Let’s look at an example:

Say you have a $30,000 loan with 6% interest over 10 years. Your monthly payment would be about $333. If you added an extra $100 per month from a side hustle, you’d pay off the loan 3 years earlier and save over $3,000 in interest!

More financial freedom

A side hustle can give you more control over your money. You won’t feel as stressed about your monthly loan payments. You might even have some cash left over for savings or fun activities.

Having extra income can also help you:

• Build an emergency fund
• Start investing for the future
• Travel or pursue hobbies

This added freedom can make it easier to stick to your loan repayment plan. You’ll feel more motivated when you see the progress you’re making.

Building skills

Side hustles aren’t just about money. They’re also a chance to learn new skills. These skills can help you in your main job or future career moves. You might realize that you have a passion that turns into a full-time business.

For example, if you start a blog to make extra cash, you’ll learn about:

• Writing
• Web design
• Social media marketing
• Search engine optimization (SEO)

These skills are valuable in many jobs. They can make you stand out to employers or help you start your own business later on.

For me, I started my blog to talk about my personal finance situation and my student loans. I never thought that it would become my full-time career, and it now is! I have learned so much over the years and my life has changed so much ever since I paid off my student loans.

Choosing the Right Side Hustle

Picking a side job that fits you is key to making extra money for student loans. A good side hustle matches what you like and your free time.

1. Match your interests

Look at what you enjoy doing. Are you good with computers? Try an online freelance gig like graphic design, virtual assisting, or freelance writing. Do you love pets? Dog walking could be fun and make money.

Think about your skills too. Can you write well? Blogging might work for you. Are you creative? Selling crafts could be a great option.

When you pick something you like, you’re more likely to stick with it. This means more money to pay off those loans faster.

2. Think about the time commitment

Figure out how much time you can give to a side job. If you’re busy with school, look for quick tasks.

For more free time, you may want to try bigger projects. Starting a blog takes work but could pay off later. Tutoring or freelance work might need set hours each week.

Managing Time Effectively

Juggling a side hustle with your regular job takes skill. You’ll need to plan carefully and set clear goals to make the most of your time.

For me, when I decided to pay off my student loans as quickly as possible, I was working a full-time job as an analyst and I started side hustling anywhere from 20-30+ hours a week on top of that. I was BUSY!

Balancing work and hustle

Start by looking at your weekly schedule. Find pockets of free time you can use for your side gig. Maybe you can wake up an hour earlier or work on weekends. Use a planner or app to keep track of your tasks and deadlines.

Try batching similar tasks together. This can help you stay focused and get more done. For example, set aside one evening to answer emails and make phone calls.

Take breaks to avoid burnout. Even short 5-minute breaks can help you recharge. Remember to eat well and get enough sleep too.

Setting goals

When I first started my journey to pay off my student loans, setting clear goals was one of the most important steps I took.

I didn’t just hope to pay off my loans – I set concrete, specific goals that gave me something to work toward every single day. I broke my total loan amount into smaller, more manageable chunks, and then I made weekly and monthly goals to keep myself on track.

For example, I knew I wanted to pay off $40,000 in less than one year, so I calculated how much extra I needed to earn and save each month to hit that target. Seeing my progress on paper kept me motivated, and each time I hit a smaller goal, it gave me the energy to keep going. I also adjusted my goals along the way – if I had a slower month, I didn’t give up, I just reassessed and kept pushing forward. This made the huge task of paying off my loans feel possible.

Here are my tips:

• Write down what you want to achieve with your side hustle and be specific about how much money you want to make and by when. Break big goals into smaller, weekly targets.
• Use the SMART method: Make your goals Specific, Measurable, Achievable, Relevant, and Time-bound. This helps you stay on track and see your progress.
• Keep your goals visible. Put them on your desk or phone wallpaper and review them often to stay motivated. Celebrate small wins along the way – they add up!
• Adjust your goals as needed. If you’re falling behind, don’t give up. Figure out why and make changes to your plan.

Side Hustle Ideas You Can Start

Looking to make extra cash? Here are 30 side hustle ideas you can start today:

1. Start a blog
2. Take online surveys
3. Become a proofreader
4. Sell items on eBay or Amazon
5. Provide pet sitting services
6. Tutor students online
7. Do freelance writing
8. Become a social media manager
9. Design and sell T-shirts online
10. Teach English online
11. Drive for Uber or Lyft
12. Rent out a room on Airbnb
13. Do yard work for neighbors
14. Provide handyman services
15. Become a virtual assistant
16. Become a personal shopper
17. Start a podcast
18. Sell handmade crafts on Etsy
19. Do data entry work
20. Become a mystery shopper
21. Dog treat bakery business
22. Flip furniture
23. Start a YouTube channel
24. Deliver food with DoorDash
25. Become a freelance photographer
26. Sell house cleaning services
27. Do transcription work
28. Become a virtual bookkeeper
29. Sell graphic design services
30. Become a fitness instructor

Pick one that fits your skills and schedule. You can even start small and see how it goes. You might be surprised at how much extra money you can make!

Frequently Asked Questions

Paying off student loans faster with a side hustle can be a great way to get out of debt. Here are some common questions about how to pay off student loans faster with side hustles.

What are some creative side hustles I can start to pay off my student loans quicker?

Some ideas for creative side hustles that you can start to pay off your student loans quicker include freelance writing or editing, tutoring students online, selling handmade items on Etsy, walking dogs or pet sitting, and selling dog treats. Pick something you enjoy that fits your schedule. Even a few hours a week can add up to extra loan payments.

Is it possible to get rid of my student loans fast even if I don’t make a lot of money?

Yes, you can pay off loans faster even with a lower income. Here are some tips to make it happen:

• Cut your expenses and put the savings toward loans
• Look for income-based repayment plans
• See if you qualify for loan forgiveness programs
• Make extra payments when you can, even small ones
• Find ways to make extra income

The key is to be consistent and put any extra money toward your loans.

Can picking certain jobs help me wipe out my student loans faster?

Some jobs offer student loan repayment help as a benefit. These may include:

• Government jobs
• Nonprofit work
• Teaching in high-need areas
• Healthcare jobs in underserved communities

These roles may give loan forgiveness after a set time. You’ll want to check the terms carefully before choosing a job for this reason.

How can I pay off my student loans in full without getting overwhelmed?

Paying off loans can feel like a big task. Here are some tips:

• Make a budget to see where your money goes
• Set small, doable goals for extra payments
• Celebrate your progress along the way
• Use autopay to make sure you don’t miss payments

Remember, any extra payment helps. Don’t stress if you can’t pay a lot extra right away.

What’s the best plan for tackling student loans with different interest rates?

When you have loans with different rates:

• Pay the minimum on all loans
• Put extra money toward the highest-interest loan first
• Once that’s paid off, move to the next highest rate

This method saves you the most money over time because it helps you pay less in interest overall.

How To Pay Off Student Loans Faster by Starting a Side Hustle – Summary

I hope you enjoyed my article on how to pay off your student loans faster by starting a side hustle.

Paying off student loans can feel overwhelming, but starting a side hustle is a powerful way to speed up the process.

By earning extra income and dedicating it to your loan payments, you can reduce your debt quicker and save on interest in the long run.

Whether it’s freelancing, blogging, reselling items online, or something else, there are many side hustle options that can fit into your schedule.

With a clear plan, specific goals, and consistent effort, you’ll be surprised at how quickly you can make progress on paying off your student loans.

Do you have student loans? What are you doing to pay them off?

Recommended reading:

• How Blogging Paid Off My Student Loans
• How We Paid off $266,329.01 in 33 Months
• How I’ve Paid Off $29,000 In Debt By Living In a Van
• How We Paid Off $28,000 Of Debt In 15 Months

The post How To Pay Off Student Loans Faster by Starting a Side Hustle appeared first on Making Sense Of Cents.