Unless you opt out of it ahead of time, everyone with a federal student loan is assigned to the Standard Repayment Plan (SRP), a program that pays off your debt in 10 years.
It is the fastest and least expensive way to repay the loans, but also carries the highest monthly payment.
Create a bank account where any money made on the side goes and use that to make payments on student loans.
That means you already should be started cutting expenses in the areas where “want” so often supersedes “need.”Try a few more expense-cutting steps like getting a roommate to share rent/utilities/food expenses; using public transportation or walking instead of having the expense of a car; move home with you parents until you earn enough to afford expenses and student loan debt.
These might feel like drastic steps, but there aren’t nearly as penalizing as defaulting on a loan.
The easiest way to solve a problem is to start at the source and in this case, that means your loan servicing company if you have a federal student loan or a bank, if you took out a private student loan.
The loan servicers and banks make money is you simply follow the terms of your loan agreement and pay them back the money you borrowed.
Discretionary income is defined as the difference between your income and 150% of the poverty guideline for your family size and state of residence.