4 Expenses to Cut Right Now If You Have to Start Paying Your Student Loans Again
Written by
Vance Cariaga
Edited by
Angela Corry
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If you have federal student loan debt and were hoping for some kind of financial relief, you won’t get it from the Trump administration. In an April 21 announcement, the U.S. Department of Education said its Office of Federal Student Aid (FSA) will resume collections of defaulted federal student loans on Monday, May 5.
The agency also said there “will not be any mass loan forgiveness” — a major departure from the Biden administration, which floated several plans to forgive loans. In fact, the current Education Department goes to great lengths to bash the Biden policies, calling them “illegal loan forgiveness schemes” that “misled borrowers.”
The New York Times reported that the new policy applies to more than 42 million people holding federal student loans. But it will “most urgently” impact the 5 million borrowers who default on their payments and the 4 million in “imminent danger” of defaulting.
If your payments have been paused for whatever reason, one of the best steps you can take is to cut costs in other areas to free up more money for student loan debt.
Here are four expenses to cut right now.
Home Services And Costs
You’d be surprised at how much money you can save simply by getting rid of certain home expenses. For example, if you pay for cleaning or yard services, you could save thousands of dollars a year doing the work yourself. The same applies to home repairs and maintenance — doing the work yourself lets you cut professional handyman and repair costs. If you are a renter, offer to fix things yourself in exchange for a lower rent payment.
You can also reduce your monthly energy bill by weatherproofing your home, unplugging unused electronics, adjusting your thermostat, using less water and cleaning your vents.
Eating Out
If you regularly visit restaurants or even order food for takeout, cutting these costs can save you up to $100 a month or more. You don’t have to be a culinary expert to make decent meals at home. Just learn some simple dishes (think pasta and sauce) or buy affordable prepared meals from your local grocery store.
Unnecessary or Unused Subscriptions
Nearly all U.S. households have some kind of streaming service subscription, according to Debt.org. Many have multiple streaming services, along with cable, internet, media and other subscriptions. These costs can add up quickly — and getting rid of those you don’t use can free up a lot of money to repay student loan debt.
Gym Memberships
Here’s another expense that can suck up hundreds of dollars a year. Although gym memberships can help you live a healthier life, they don’t do you much good if you’re not a frequent visitor. Even if you do use the gym regularly, getting rid of the membership will free up a lot of money for student debt repayment. There are plenty of free or inexpensive ways to get exercise, such as running, riding a bike, working out at home or buying a set of cheap weights.
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