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Simple Solutions for Repaying Student Loan Debt

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As valuable as education is, it’s awfully expensive. Most students these days look to outside help for finances to help them get through school and land their dream job with the help of a degree or certificate. Unfortunately, getting to that dream can often cost us thousands of dollars in student loan debt. The good thing? Getting over that hump of paying back our student loans is not nearly as insurmountable as it sounds. Check out these helpful ways that will lead you down the path to financial freedom and out of debt.

Live Modestly

It can be hard to live within our means sometimes. We want to go out and socialize, have a few drinks, catch a movie with our pals. The unfortunate truth is that these little expenditures add up in a big way. It’s okay to go out and live your life, or buy some snack food every once in a while, but remember to stay within your means. Whether you’re about to graduate and begin paying back your student loans or you’re already done your education and are in the process of paying them back, spend as little as possible, when possible.

Figure Out Your Options

Repaying your student loan debts doesn’t have to be done all by yourself. Asking for help or reaching out for support isn’t something to be ashamed of either. It’ll alleviate some of the stress in your life to research how you can pay your loans.  Consider all your options; savings accounts, Elfi, loan assistance services, borrow from family, work a secondary job. These are among the many ways you can help chip away at those pesky loans and allow you to feel mentally and financially free, ready to take on the world with your career. There are always options to help you out, don’t be afraid to exercise them!

Pay More Than the Minimum

This tip feels really straight forward but it’s worth mentioning because it is often overlooked. Paying more than the minimum payments for your loans can mean the difference in months of how long it takes to fully pay off your debt. It doesn’t mean you have to pay a massively increased amount each month, but simply paying a percentage of the minimum added on, will reduce the overall time. Another good trick is to split the payments in half for each month so the money you spend doesn’t take chunks out of your rent, groceries, or other necessary bills.

Conclusion

Repaying student loans is an unfortunate reality for many students and graduates. Although it can feel defeating to get your education and know you have to take chunks out of your paycheck each week, the goal of financial freedom is one that requires some sacrifices at times. Keeping these tips and tricks handy is a good way to set yourself up for success in paying off your student loans and is also a great way to develop responsible spending and saving habits when it comes to your money in general.

Incidentally, if you are interested in learning about some radical solutions to the student loan debt problem, the Saving Advice Forums has an excellent discussion about a 5,000 year old proposal for paying off student loan debt.  Basically the idea is to cancel all Federally held student loan debt in the country to improve economic growth.

For more great articles on The Free Financial Advisor, consider reading our pieces on:

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Best Gold IRA Companies of 2019

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Birch Gold

Birch Gold offers different types of coins and items for customers. Its customers may acquire items such as American Gold Buffalo uncirculated coins. Birch Gold Gold IRA account holders are able to purchase gold, silver, palladium, and platinum.

The organization has been operating since 2003, setting its pace as a dealer of physical precious metals in the US. It has a team of wealth managers, commodity brokers, and financial advisors to support customers in their investment decisions.

Goldco

Goldco helps its customers to set up a gold IRA to protect their investments and prepare for retirement. Account holders with Goldco need to adhere to minimum purity standards set by the IRS. Gold must be at least .995 pure while silver must be .999 pure, and platinum .9995 pure.

Goldco promises to keep precious metals in secure depositories that are licensed and insured. Representatives from Goldco may contact an individual to help them get their account set up and funds transferred.

Noble Gold

Noble Gold is known for its strong emphasis on honesty, penchant for client rapport, and its commitment to providing expertise on precious metal investments. It is on a mission to preserve wealth.

Noble Gold is the first and only custodian-approved gold dealer storing in the new Texas depository. The depository is the third IRS-approved gold IRA rollover depository in the US. Only clients of Noble Gold have access to it.

JM Bullion

JM Bullion likes to keep its net wide, making its best efforts to supply a wide variety of precious metals. It helps customers to invest in such metals for the purpose of enhancing their IRAs.

JM Bullion offers discounts and sales for customers, giving them a chance to set up accounts and make purchases at lower costs. The organization processes 30,000 transactions per month from its headquarters in Dallas.

Lear Capital

Lear Capital has shown time and time again why it is considered a leader in the gold IRA industry. It has spent over two decades creating stellar customer experiences for investors in precious metals. Market Business News confirms the good reviews which customers have for Lear.

In 2019, Lear Capital continued to set the pace for its industry with over $3 billion in investments in precious metals. Its wildlife series of gold and silver coins has taken the markets by storm, peaking the interest of both new and veteran precious metal buyers. In September, 2019 Lear Capital reported a year on year increase in the demand for its wildlife card series of gold and silver coins.

Here’s Why You Should Get a SR22 Insurance

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Have you recently had your driver’s license revoked or suspended and you’re wondering how to go about getting it back?

One of the steps to getting your driving privileges reinstated is to obtain what’s known as an SR-22. This is required to show that you’re being backed up by a legitimate insurance company while on the road despite your past traffic offenses.

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Just Entering The Workforce? Let’s Talk About Retirement

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Can you remember the first day you worked and earned money? It might have been babysitting for your neighbor’s kids or a retail job at the local mall. As a kid, you might have imagined your parents going to work as something that just happened. You didn’t think of the financial ramifications or why going to work was important.

The older you got, the more likely you were to start seeing the value of money. Want to go to the movie with your friends? Want to purchase a new video game? All those things cost money.

So, you got a job and chances are, you weren’t the best saver. Money was for activities and fun.

But now that you’re entering the real workforce, there are lots of other things your money is going to such as rent, groceries, utilities, and retirement.

Retirement? But you just started working!

Even though you might be 40+ years from retiring, it’s never too early to start thinking about the day when you hang it up. Below, we have some tips and questions you should be asking yourself and those around you when it comes to your retirement.

Does Your Work Have Retirement Benefits?

While a pension was the norm for your grandparents and maybe even your parents, roughly just 54% of businesses these days offer pension plans for their employees. While that may seem like a solid number, the financial crisis of 2009 put a real dent in those numbers and they have been slow to recover.

While your work may not offer a pension, they may offer other benefits like a 401(k) or a 401(a). 401(a) plans are typically offered by government or nonprofit institutions and participation in these plans is often mandatory. Contributions are determined by the employer and can be either pre or post-tax.

401(k) plans are the opposite. They are more popular in the private sector, don’t have a contribution limit, and participation is not mandatory (although it might be).

Contribution is pretty simple, that you take X amount of money out of your paycheck and put it towards these plans each month. Money accrues and grows over time.

Let’s say you need the money, can you take it? Of course, it’s your money but it comes at a cost. The IRS will take a 20% as a penalty for early withdrawal. There are certain stipulations to withdraw money without the penalty, but they are never guaranteed.

Your Personal Savings

Hopefully, you aren’t living paycheck to paycheck and you’re putting away a certain amount of money each month. That could be saved for an emergency or saving up to make a big purchase.

It’s important to set up a personal savings plan because that money could be put into an individual retirement account (more on that later).

Budgeting is boring but highly necessary. Whatever you’re putting away each month should be treated like your 401(a) or 401(k). It should be untouchable. Make sure to take a certain percentage of your savings and plan to put that towards your retirement.

Individual Retirement Accounts

You might have seen this written as IRA and they are pretty common. The idea is that you yourself put money into a non-Roth or Roth IRA each year (up to $5,500 maximum) and that money is invested.

Many people seek out the advice of financial planners to help them plan a strategy for their IRA. The biggest difference between the two lies within the taxes.

Traditional IRAs mean your contributions are taxed in the year they are made. With a Roth IRA, you’re not going to be taxed when you start making withdrawals.

It’s important to note that not everyone is eligible to contribute to a Roth IRA and access can be restricted if you are using a 401(k).

The best thing to do is to meet with a financial planner and discuss your options. Ask your parents or others who might have a contact they can set you up with. They can help you do much more than just manage your retirement, but help manage your entire portfolio as well and give tips on sound money management policies.

Even though it may seem silly, it’s never too early to start thinking about your retirement.

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How To Pay Off Your Student Loans Quickly

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Student loan debt is becoming a common financial crisis in the United States. A majority of students are graduating with huge amounts of debt and feeling crushed by the financial burden. More and more graduates are searching for ways to pay off student loans quickly so they can experience financial freedom before making other financial investments.

It’s unfair that an entire generation of young Americans have to wait even longer than older generations to purchase a home or start saving for retirement simply because they wanted to get an education. Therefore, if you have student loan debt it’s a good idea to employ every strategy that you can to pay it off quickly.

This article will go over a few general tips and strategies for how you could quickly pay down your student loan balances, so you can become financially independent once more!

  1. Make Sure to Fit Debt into Your Budget

When making your monthly budget, whether you are single and just out of school or budgeting for a family, always take your student debt into account. Budget in your student loan debt, credit card debt, title loan debt, mortgage, and any other debt you may have. Make sure you include your debts into your budgets as they should always be the main priority. Try to allocate more money toward your debt than what is required.

  1. Pay Extra on Higher Interest Loans

If you are going to make extra payments on your student loans over the minimum, then put that extra cash towards higher interest loans. The interest rates are constantly growing your debt load and paying off those loans with the highest rates first will save you money in the long run. And when paying more than your minimum, tell your servicer to apply that overage to your current balance and not simply to next month’s payment.

  1. Determine Whether Refinancing is Right for You

When trying to decide whether refinancing is a good idea or not, it is not a clear black and white determination. It completely depends upon the situation; whether your loans are federal or private, whether you have good credit and a good job, whether your loans are subsidized or unsubsidized. Research your options, calculate how you might save or lose money, and make the decision that is best for you.

  1. Enroll in Autopay

Make sure that you never miss a payment or get charged a late fee by signing up for autopay. Enrolling in autopay can even get you a minor interest rate discount with federal servicers. Along with the discount, you will be able to set up multiple payments and ensure you pay your loans as a priority.

  1. Pay More than Once a Month

Instead of just paying once a month, you can trick yourself into paying way more and cutting down your repayment schedule drastically by simply making two payments a month instead. This doesn’t even mean you have to pay double a month, but just twice. That will still make a difference.

Persistence and hard work will take care of your student loan debt once and for all. Just stick with it and follow these suggestions and before you know it, you’ll see that the diligence was so worth it.

For more reading, consider checking out this article from Nerdwallet on how to pay off your student loans fast.

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