Student Loans Ed

Here is a video I did talking about Student loans and how they are affecting me today.

Video Script: So many people try to get out of paying back their student loans. But I decided if you want something bad enough, you should never ever give up until it’s done. That’s my advice. I wish I could just ignore the debt altogether while I worked full time and make lots of money. But that’s not always the case. And the sad thing is, I have friends who have given up already. My partner and I both have credit card debts, and we’re making huge payments on those each month. We’re going to keep working at our jobs and keep sending money to these companies until we pay them off. Then what? When I think about where I was five years ago and compare myself to now, people say “you’ve grown up. You’re a man!” Well, yeah, but who got paid to do that? Not me. Because I didn’t earn enough money to afford tuition hikes, let alone rent and food.

I thought about trying to find ways to earn extra money over the summer and tried writing some posts online. I wrote a lot about fitness, weight loss, and food stuff. But after two months of doing that, I earned $200 dollars total. Do you know what happened to that money? It went right back into my loan payment. If you work hard over the summer, you might end up earning some extra cash. But that won’t help much if you don’t save any of it. And even then, you still need to watch what you spend it on. Otherwise, you’ll go into the fall broke again.

What I learned from the whole experience was that you really need to plan ahead to avoid having debt hanging over your head. If you haven’t started saving yet, start small. Put away ten percent of your paycheck in a separate savings account. Once your balance gets above $1000 dollars, put more than ten percent away each week. There are several sites like mint.com that let you set up automated transfers into different accounts.

You don’t want to rely on being financially responsible either. Try getting a job related to your degree. Or find a side hustle. Maybe sell some things in the house you no longer use. Get creative! Just remember that if you’re going to take loans, you’re going have to pay them back. No matter how good your intentions may be.

studentloans ed

debt moneymanagement

Student Loans Ed

A student loan sounds great right? You get money upfront to pay for school. However, with interest rates skyrocketing and students unable to find jobs after college, many graduates struggle to repay their loans. And if they do manage to make some extra cash, they often end up owing much more than what they originally borrowed.

The average debt level among graduating seniors was $29,400 in 2018 and is expected to reach $45,000 by 2023. That’s not only a lot of money, but graduates have to deal with an almost impossible situation – with monthly bills and minimum payments on top of paying back thousands of dollars in interest.

Repayment schedules vary depending on the lender and borrower, but one thing is certain: Student loan borrowers are getting squeezed.

While the federal government has been working for years to help alleviate the problem, students still have few options to avoid falling victim to student loan debt.

You may know how big of a challenge repayment can be. But do you really understand the reasons behind why student loans are so difficult to repay? Let’s take a look at some of the reasons why student loan forgiveness hasn’t become a reality.

Borrowers Aren’t Required To Repay Their Loans Until After Graduation

If you’re a graduate who is struggling with repaying your student loans, it may seem like a no-brainer that you should pay them off as soon as possible, especially since they’ll be around for decades to come.

But according to the Department of Education, borrowers don’t have to start making any payments until at least six months after graduation. According to the DOE, this period is designed to give students time to figure out whether they want to stay in school and pursue higher education. If you decide to drop out, you won’t have to begin repayments immediately either.

This rule is known as grace period, and it applies to both private and public loans. Private student loan borrowers must start making payments after 12 months, while public loan borrowers have three years before having to begin making payments.

In other words, if you choose to borrow money for college, you can easily delay your payments for the first couple of years without worrying about penalties.

Most Public Service Loan Forgiveness Programs Are In Place Of A Degree

Even if you’ve paid off your loans, chances are you still owe money to the feds. Why? Because the majority of these programs are in place of a degree.

For example, under the Federal Perkins Loan Program, borrowers pay a set amount per year based on the number of credit hours they took. Once they finish school, they can apply for loan forgiveness, but they’re not eligible if they didn’t earn a bachelor’s degree.

According to the Department of Education, there were over 1 million people who applied for loan forgiveness in 2019, and just 4% were able to qualify.

Student Loans Ed

Credit Cards

It’s not always possible to get student loans if you don’t have any money! You’ll need some cash to live on while studying. However, credit cards can help you build up your emergency fund. If you’re just starting out, it may make sense to use your parents’ card.

A Bank Account

If you already have a bank account, then this is a great place to start. Any overdraft fees you incur while using your parents’ card will be paid for by them. If you want to avoid these fees, consider getting a debit card instead.

Student Loan Consolidation

If you do have access to student loans, you could look at consolidating. That way, you only pay back one loan and therefore save quite a bit of interest. There are many different types of consolidation. In order to qualify, you’ll need to show proof that you’re working towards paying off your debts.

Student Loans Ed

Student Loans Ed

Student loans aren’t always bad – I’ve had some great experiences with my student loan debt. However, if you’re going to take out any type of loan, you need to make sure you pay them off properly. Here’s how to do it…

Pay them off every month! Don’t let them build up interest on them or forget about them. My best advice is to get them paid off as soon as possible. If you don’t have the money now, then you need to find a way to earn more. You should try to work 2-3 jobs at once until you have enough extra income to start repaying your debts. If you wait too long, you’ll end up paying much more than you would have otherwise.

Find a job where you feel good. If you’re having trouble finding a job, think about what kind of environment makes you happy. Do you want a job that takes lots of time away from home? Or would you rather work somewhere you can interact with people? When looking for a place to work, make sure you ask for the schedule and hours. Most employers won’t give you that information without asking.

Make sure you apply for scholarships. Scholarships aren’t just for students who want to go to college, they’re available for anyone who wants to further their education. There are plenty of ways to find free money (scholarships), but you have to make yourself eligible. Start applying early to ensure you get the best ones.

Be careful when choosing a major or career path. Sometimes you may not know exactly what you want to do yet, but you still need to choose something. Many colleges offer financial aid based on your field of study. Your parents might even be able to help contribute towards your schooling costs. That said, don’t choose a major because it seems interesting; pick something you actually want to do.

If you’re currently attending school, ask your professors and counselors about job opportunities after graduation. You could find a job at a company right after graduating.

Save money whenever possible. One of the easiest ways to save money is to cut back on unnecessary spending. Try to buy things second hand instead of brand new. Also, look for sales and discounts wherever you shop. Lastly, if you plan on getting a student loan, look for the cheapest options first.

Use free apps to help manage your finances. Apps like Mint and MoneyDance are both pretty basic and free. These services allow you to keep track of your finances and see your balance at a glance. Using these tools can help you avoid spending more than you planned on and ensure you’re making payments on time.

Ask your family and friends for financial help. Most parents worry about how they’re going to save enough for their children’s future. Instead of worrying about that, help them save money. Let them know you want to go to school, and that you intend to repay them as soon as you graduate. Then ask them for money and use it wisely; saving it is a lot easier than earning it.

Budget for entertainment expenses. Whether it’s movies, concerts, or video games, budgeting your entertainment expenses is important. You shouldn’t blow all of your money on things you’ll never enjoy again. You should set aside money each week or month to spend on fun activities.

Think about refinancing your student loan. Refinancing your student loan isn’t as hard as many people think. In fact, you can often lower the amount you owe by up to 50%. By refinancing, you’re basically selling your current loan at a higher rate and buying a new one at a lower rate. Depending on the total amount of your loan, refinancing can sometimes be cheaper than taking out a fresh loan altogether.

Avoid credit card debt. Credit cards are an excellent way to fund your lifestyle, but be smart about using them. Paying off your credit card bills can help improve your credit score, but you’ll run into problems if you continue to put off payments. You should pay them off as fast as possible, and if you’re struggling with that, consider opening a secured credit card account. Secured cards are backed by collateral; either your car or anything else valuable. Having that security means you’ll have to be honest about how much you spend, but you’ll have access to additional funds if you ever need them.

Learn to live frugally. Frugality doesn’t mean being cheap; it means learning to live on less money. Rather than spending on unnecessary items, learn to live simply. Buy groceries in bulk and cook your own food to reduce expenditures. Look for free activities to attend, like volunteering or community events. Get creative and make your own household products, like cleaning supplies or laundry detergent. The goal here is to become comfortable living with little money. Once you reach that point, you’ll no longer need to rely on expensive luxuries.

Start investing. Investing is an effective way to earn money while building wealth. You can invest your money in stocks, bonds, mutual funds, or real estate. Each investment option offers its own advantages and disadvantages. For example, owning stocks will generally provide you with a higher return, but they’re harder to sell quickly. Mutual funds and bonds, on the other hand, are safer investments and are easier to liquidate. Before you begin investing, determine which of those options will suit you and your goals the best.

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