A 2016 survey found that 62 percent of Millennials considered starting their own business. However, 42 percent of the same group believe that they did not have the financial means to accomplish it. For most, student debt is what stands in the way of this dream. This brings us to ask, how do you start a business while paying down student loans?
If you are considering opening a business, visit Gov Doc Filing for helpful information regarding the various entities.
Maximize Cash Flow and Capital
Cash flow can be a major hurdle when you have a high student debt balance. To accomplish that, cut down on any expenses possible, like a car when you are able to bike. Also, increase income by freelancing your services.
Consolidating your student loans allows you to keep better track of your debt and possibly lower interest. You can consolidate both private and federal student loans after you leave school, graduate, or are enrolled half-time, through many banks.
However, your credit score must be good, no defaulted student loans, and free of any bankruptcies. Also, there may be fees involved. Be sure you only refinance to a lower interest rate.
Income-Based Repayment Plan
The federal government offers forbearance and loan deferral mostly to those facing severe economic hardship, enrolled in graduate programs, entering the military, or taking public service jobs. They also offer income-based repayment plans, allowing you to significantly lower your monthly payments. Take note, however, participating in this program may cause you to pay more interest in the long run; but, the reduced payments can provide you with the extra capital you need to start your new business.
Fast, Secure, and Simple
Save time and hassles when you apply for EIN online through Gov Doc Filing. They offer a simplified application available 24/7 and delivers your Tax ID number within one hour via their secure email system.
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