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student debt

Debt

4 Quick Strategies For Paying Off Student Loans

Build a Solid Budget

It can be hard to adjust a budget to include a loan payment, especially if you’re not used to making one. A good rule of thumb is to separate your budget by the 50-30-20 rule: 50% of your monthly take home income toward living expenses, 30% to discretionary funds, and 20% to debt repayment and savings. Depending upon how many loans you have and the interest rate, you may need to get aggressive and contribute 30% to debt repayment and 20% to discretionary or “fun money”.

Try and find something that works for you, but that allows for you to make progress on your loans.

Set up a Great Debt Snowball

Repeat after me: Paying off as much as you can now will pay off big time later, to prevent compound interest from accruing.

One great way to accomplish this is by setting up what is called a “debt snowball.” In the debt snowball, you list all of your loan amounts and putting those with the highest interest rates at the top. The idea is to put all of your extra money to paying off the highest rate loans, and then when that one is paid off, on to the next loan, and so on and so forth. The advantage to this is that you could save thousands on interest.

The only downside to paying down loans with the highest interest rate is that it can take a long time for someone to pay them off and feel successful. So, if it makes more sense to you to pay off smaller loans first in order to feel accomplished and empowered, then by all means- do so. Many find this ”reverse snowball” approach essential to keeping motivated with debt payoff and avoiding debt fatigue.

February 26, 2015

General

How To Invest In Quality Education Without Drowning In Debt

Investing in quality education will set you up for success in all areas of your life. However, it’s often difficult to find an educational program that doesn’t set you back in debt. Going to college online is the perfect way to fit college into your life–without the debt.

The Financial Strain of Traditional College

It’s often assumed that putting out the money at the start of a career to bolster yourself with a college degree is the ticket to earning big down the road. Many back up the high cost of tuition by considering a college education the only way to get hired for high paying jobs. It’s worth the investment now, people think, because you’ll earn back everything you pay up front.

However, costs of college tuition are skyrocketing. While in the past people thought that you earned your college degree to allow you to earn more money throughout your career, that’s simply no longer the case. Your college degree may not land you a job that pays back the costs–instead, you could very easily get stuck with tons of debt. New York’s Federal Reserve Bank estimates that outstanding student loan debt nationwide is at $902 billion.

Benefits for Older Learners

Going to work experience colleges online comes with a lot of financial benefits. Without paying astronomically high tuition prices, you’ll get the same knowledge students at traditional college campuses gain. This is especially beneficial when it comes to older workers and learners.

December 3, 2014

Debt

5 Ways To Prevent Being Overwhelmed With Debt After College

Debt isn’t fun for anyone, especially for college students. The last thing you want to worry about when you graduate from college – on top of worrying about securing a job – is how to pay back your staggering student loans. It should be comforting to know that there is a plethora of other college grads that all feel the same thing – the crushing realization that your debts are about to swallow you whole. However, there are a number of ways to alleviate this feeling and it starts with becoming proactive – not reactive. At the end of the day, with a little resourcefulness and creativity, anyone can create a successful strategy to reduce their debt. Here are five ways to prevent being overwhelmed with debt after college.

January 2, 2014

Debt

Different Types Of Student Loans Available For College Bound Teens

If you are looking at colleges to attend – filling out applications, writing admission essays and scheduling campus tours – there is a good chance that you are also looking for a loan. You may hear nightmare stories about college loans taking over and destroying people’s lives, but the truth is that if you find the loan that works best for you, you won’t have to worry about it hitting you on the head later. The secret also lies in going to college for something you absolutely love doing. If there is passion and motivation – you will mostly likely find a career with which you can use to pay back your loans. Here are some different types of student loans available for college bound teens.

December 31, 2013

Debt

5 Things To Consider Before Taking Out Student Loans

While taking out a college loan can be a valuable resource to afford a higher education, it is incredibly important to consider a few things before you do. About 60% of people who go to college take out student loans to supplement their tuition and other costs, but it can have serious implications, especially if you have trouble paying it back. Out of all the students that do rely on loans, a staggering percentage is having trouble paying them back. This is not the fault of the lender or even the interest rates, but mainly because of the dismal job market. Basically, new college grads are finding it harder and harder to find work.

Here are 5 things to consider before taking out student loans.

Make sure that you read between the lines. Often there might be hidden fees or changes of interest rates, which can severely affect your chances of ever being able to pay back your loans. A financial aid counselor should be able to guide you through all the terms of your aid package so that you aren’t missing anything. If you are, they will certainly point it out or answer any questions that you might have.

There are different types of financial aid that are available, so it is important to know which one works best for you. There are financial aid programs that offer loans that you will need to pay back or you can apply for a state or federal grant, which is essentially free money to be applied to your higher education that you don’t need to pay back. It’s wise to find out what you are eligible for, before you sign up for anything.

May 18, 2013

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