8 Options to Start a Business While Paying Off Student Loan Debt

1. Start with Low-Risk Business Ideas

Starting with low-risk businesses can save you time, money, and energy.

  • Online courses and tutoring. Providing instructional eBooks or videos and real-time virtual lessons.
  • Online shops. Selling handmade goods, like jewelry or custom stickers, and dropshipping.

2. Review Your Student Loan Payment

Before thinking about the business funding, review some aspects of your student loan payments, such as:

  • Cost of the loan with the interest rates and fees
  • Current credit score
  • Loan discounts and limits
  • Repayment options

3. Check the Student Loan Forbearance

If you’re worried about having little money at the beginning of your business, student loan forbearance can be an option. Meaning, you can pause the loan payments for a certain period, usually 12 months. Yet, interest rates will still be accumulated, so you may end up with a larger debt.

4. Maximize Your Capital

Even if you get the consolidation and refinancing, balancing personal expenses with student loans and business funding can be challenging.

5. Explore Funding Options

Self-funding business is an option. However, it can be risky to run a business with limited resources due to student loans.

  • Lending circles. An organization or community that gives a loan to small businesses. To get the fund, you may need to join its financial education course. One site to find a lending circle is Mission Asset Fund’s Lending Circles.

6. Look into the Business Loan Options

It may not be easy to qualify for a traditional business loan, especially if you’re a student or a recent graduate that just started a business.

  • Strong financial statements
  • Positive cash flow
  • Hefty assets

7. Consider Working with a Mentor

Starting a business all by yourself can be intimidating. Therefore, consider seeking a mentor to give you ideas, such as helping to create a business plan or explaining how to market your business.

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