After more than three years of pause, federal student loan payments are back on the books for more than 40 million Americans. While some temporary protections remain in place until September 2024, millions of borrowers are already feeling the financial pressure — and if nothing changes, we’re heading straight toward a credit rating crisis.
The Hidden Threat: Credit Score Damage
The Biden administration’s temporary “on-ramp” program has given some borrowers breathing room by pausing negative credit reporting until September 30, 2024. But when this grace period ends, missed payments will once again trigger:
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Delinquency status on your credit report
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Lower credit scores
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Default and collections activity
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Seizure of tax refunds and wage garnishment
For many borrowers, especially those who’ve recently graduated or are early in their careers, this could be financially devastating — just as they’re trying to build a stable life.
A Powerful (and Overlooked) Solution: Referral Commissions from Factoring
What if you could completely cover your monthly student loan payment — and even begin to pay it down faster — by simply referring just one business owner to a factoring company?
It’s not only possible — it’s being done every day by referral agents and part-time factoring brokers across the U.S.
What Is Factoring?
Factoring is a type of business finance where companies sell their unpaid invoices to a third party (a factor) to get quick cash — instead of waiting 30, 60, or 90 days to get paid.
As a referral agent, you connect small businesses (who need fast cash flow) with reputable factoring companies. When a deal is funded, you earn a monthly residual commission for as long as that client uses the service.
Just One Referred Client Can Pay Off Your Loan
Here’s the math:
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A small business might factor $50,000–$100,000 per month in receivables.
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The factoring company pays a 10% commission of its fees to referral agents.
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That usually translates to $200 to $500/month per active account.
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Refer more clients? Your income grows — and it’s residual.
One referred client = $200 to $500/month in income. That’s enough to cover — or even exceed — the average student loan payment.
And once you have two or three active accounts? You’ve got a side gig paying off your debt on autopilot.
Who Needs Factoring?
You already know them — or can find them quickly:
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Trucking companies
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Staffing agencies
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Construction subcontractors
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Manufacturing companies
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Cleaning or janitorial services
Any small business that bills clients on terms (Net 30, 60, or 90) is a potential candidate for factoring.
How to Get Started
Getting started as a referral agent is easy and often costs nothing. Here’s a quick path:
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Learn the basics of factoring (check out IACFB or similar broker associations).
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Get set up with one or more factoring companies that welcome referral agents.
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Use your LinkedIn, local networking, or even door-to-door visits to introduce the idea to business owners.
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Refer your first client — and start earning.
Many platforms also provide ready-made websites, email templates, and direct mail flyers to help you get leads.
A Side Hustle With Real Impact
With the student loan on-ramp protections ending in just a few months, millions of Americans will soon see their credit ratings take a hit. But you don’t have to be one of them.
By simply learning how to refer a few clients to a factoring company, you could build a monthly income stream that covers your student loans, protects your credit, and even creates long-term financial stability.
Ready to turn a student loan crisis into an opportunity? Start learning about factoring today — and make your debt work for you. It only takes one referral. Learn how at the IACFB Academy.