Tips to Pay-Off Your Student Loans

No comments

I like to focus my posts on actual steps someone can take to solve a specific problem.  If you’re looking for a critical analysis of an issue where you’re only presented with problems on top of problems, this is not for you.  That being said, here are 5 Easy Steps to Consider to BEAT STUDENT LOANS:

  1. Free Tools – Start off on student loan comparison sites like Student Loan Hero or Credible – They offer a FREE analysis of your student loans and collect different loan rates from several certified trusted lenders.  It’s an easy and free way to see all your options!
  2. Research and Select a Lender – If you see a refinancing option that significantly lowers your interest rate and the lender has great reviews, go for it!  A preferred lender for most student loan refinancing based on ease of use and low interest rate is SoFi – (sofi.com/share/409340).
    • (*TIP: Your able to individually pick which loans you want refinanced; so pick the loans with higher interest rates and reduce that monster – Ex: refinance loans with a 7.5% rate or higher to the offered 5.25% fixed-rate, but don’t refinance the loans with a current interest rate of 5% and lower).
  3. Loan Forgiveness –  Keep in mind that if you’re currently on a loan forgiveness program(i.e., government/public sector employment, military, teaching, etc.) refinancing will eliminate your benefits under these great programs.
  4. Don’t take on any new debt –  A new car can wait, you’ll always find another dream home, and swiping your credit card is easy, but seeing that monthly statement will make you nauseous.  Save your money and pay a little bit more principal off on those student loans or invest!
  5. Invest: There are so many free tools and apps out there that can help you save and invest with little to no risk and NO FEES.  (Free is a millennial thing I guess). Here’s a few tools below:
    • Want to trade stocks? Every brokerage account charges you for each buy and sell transaction.  That can add up for us poor kids.  Do it for FREE at Robinhood – http://share.robinhood.com./danield1160
    • Invest your change from each purchase.  Purchasing a bottle of water @ a whopping $1.97 – Why not invest 3 cents automatically.  Companies like Acorns(https://acorns.com/invite/NYTRLR) do this service for FREE if you invest less than $10,000.  If you’re investing more, God Bless You and please donate your riches!

It’s important to note that student loans must be repaid.  You don’t want to shoot yourself in the foot for be “financially savvy.”  One of main catalysts for the sub-prime mortgage crisis during the 2008-09 recession was the rise in “strategic default” –  borrowers who didn’t pay their monthly payments even though they could afford to do so (See: https://www.forbes.com/sites/jeffreydorfman/2017/07/07/the-student-loan-default-crisis-is-being-caused-by-promises-of-debt-forgiveness/#7af61f041a46).  We all know of someone whispering in our ear that “there’s no need to pay the bank, screw em.”  Don’t be a fool.  Unlike a traditional mortgage foreclosure where you would loose the underlying asset (your home) or elect the path of bankruptcy where all your debts could be liquidated and discharged, student loans have no such liquidation process.  They stay with you until you DIE.  And even after death, all your creditors will be lining up to collect from your estate.

Hope this helped!

Sincerely,

Daniel Tiger

 

The materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this Web site or any of the e-mail links contained within the site do not create an attorney-client relationship between the site and the user or browser. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s