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How to Manage a Student Loan as an Intern

The reality of interning while attending school with a student loan is not easy. At the same time, it is a perfect opportunity to use your talent or education learned in University to earn an income and pay off unwanted debt.

Don’t let the unpaid internship experience hold you back from making your payment on time. Here are helpful tips to grow

 

1

Is a Student Loan Right for You?

A refinancing plan may or may not be the best option to pay your way through college or university. If you are a student with a large amount of debt, you are close to graduation or have a co-signer as a parent to help; it can be a good fit.

The goal is to live within your means by avoiding overspending and living a simple lifestyle until the student loan is paid off.

2

Pursue Internships Offering a Stipend

As most know, there are unpaid and paid internships. An internship that offers a stipend of a few hundred dollars can support a monthly student loan payment. If the stipend is higher than the student loan, do your best to put money away per month in the event you are out of work, or unexpected expenses occur.

3

Keep Up with a Schedule

How can you keep up with a busy schedule? There are several ways. Set up a reoccurring monthly calendar reminder on a smartphone. If the smartphone reminder is not enough, depend on an email reminder on Outlook, or Gmail. If a second reminder needs a helping hand, some apps will send a pop up to your phone or payment reminders, internship interviews or visits with student loan counselor’s. 

4

Consolidate Your Student Loan

Consolidating or refinancing a current loan is an excellent way to lower monthly payment. Also, it is possible that the bank can provide a lower interest rate which in turn can save you money. The best way to request a consolidation is to pay the loan on time in a 6-month time frame. After six months, set up an appointment with a bank associate and request it. The worst that can happen is you cannot consolidate, and the associate can provide tips on what to do to request it in the future.

5

Negotiate a Higher Stipend

Most companies that accept interns understand are students that are struggling financially to survive while studying. At the same time, you can attempt to negotiate a higher stipend to take care of basic needs that include groceries, or textbooks per semester. The most that can happen is the company will say no. If there is an allowable budget that can provide a higher stipend, it can be a way for you to pay down the loan with an extra monthly payment.

6

INTERNING CAN CHANGE YOUR LIFE

Other than the financial gain of a paid internship, you can land a full-time permanent position at the organization or be referred to an opportunity with a new company. At first, it can be difficult being responsible for a student loan while interning. Don’t be afraid to ask for a higher stipend and request consolidation of a loan. Most importantly, think about whether a loan is the best for your future. 

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Page last edited Jul 19, 2018 History

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