3 answers
Elizabeth
Student
North Richland Hills, Texas
12
Questions
Updated
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How should I pay back back my student loans?
Is there some advise you can give me on a ways I can payback my student loans # as fast as possible. And then things I can do during the school times.
#Thank-you #financial-planning #financial-aid #money
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3 answers
Siduo Ai
Account Manager
3
Answers
Nashville, Tennessee
Updated
Siduo’s Answer
Hi Elizabeth!
Unfortunately, I am seeing this 3 years too late as I had just signed up today so I hope all is well.
The key to financial stability is planning and saving, combined with effective budgeting. The aggregate sums at first will seem daunting, if not downright stress-inducing.
However, this is something that many Americans do go through, and one of the key factors you have to think about is your estimated earnings vs. the interest accrued. Part of the failure or mounting debt that some people face is not budgeting out the way they are going to pay for it and what they plan for on a rainy day. Another aspect to consider is that you have choose the right lender, or refinance if you haven't. Unfortunately, given the predatory nature of most educational lenders, this is a tight rope you have to walk and an absolutely crucial life decision.
There are some avenues, like careers in the public sector as well as some private companies that do offer loan forgiveness over time, but those often come with significant time commitments and certain qualifications that may seem attractive on paper but then represent a significant hurdle as you consider your career vis-a-vis potential earnings and the opportunity cost of what you could've done in the meantime.
I would advise to look at your interest rates for those loans, principal $'s if applicable, as well as the payoff date. You have to then leverage that with what your current income is and forecast whether you'll be in a tough or better spot in 6 months. As always, keep saving, remain frugal if at all possible, and if anything like a monthly/quarterly/annual bonus for work or any part time income, as well as gifts/rewards/extra earnings, should go immediately towards repaying that debt. The common wisdom is to save money in a interest-generating bank account, but please realize that your loans will most likely accrue interest faster than your savings % growth rate.
Without going into details, I hope this helps - stay positive, plan ahead, calculate your money carefully, and know when to spend and if you need to refinance or find a different career path as necessary.
Unfortunately, I am seeing this 3 years too late as I had just signed up today so I hope all is well.
The key to financial stability is planning and saving, combined with effective budgeting. The aggregate sums at first will seem daunting, if not downright stress-inducing.
However, this is something that many Americans do go through, and one of the key factors you have to think about is your estimated earnings vs. the interest accrued. Part of the failure or mounting debt that some people face is not budgeting out the way they are going to pay for it and what they plan for on a rainy day. Another aspect to consider is that you have choose the right lender, or refinance if you haven't. Unfortunately, given the predatory nature of most educational lenders, this is a tight rope you have to walk and an absolutely crucial life decision.
There are some avenues, like careers in the public sector as well as some private companies that do offer loan forgiveness over time, but those often come with significant time commitments and certain qualifications that may seem attractive on paper but then represent a significant hurdle as you consider your career vis-a-vis potential earnings and the opportunity cost of what you could've done in the meantime.
I would advise to look at your interest rates for those loans, principal $'s if applicable, as well as the payoff date. You have to then leverage that with what your current income is and forecast whether you'll be in a tough or better spot in 6 months. As always, keep saving, remain frugal if at all possible, and if anything like a monthly/quarterly/annual bonus for work or any part time income, as well as gifts/rewards/extra earnings, should go immediately towards repaying that debt. The common wisdom is to save money in a interest-generating bank account, but please realize that your loans will most likely accrue interest faster than your savings % growth rate.
Without going into details, I hope this helps - stay positive, plan ahead, calculate your money carefully, and know when to spend and if you need to refinance or find a different career path as necessary.
Jennifer Friedberg
Senior Associate at PwC - Financial Services Capital Markets Management Consulting
7
Answers
New York, New York
Updated
Jennifer’s Answer
Hi Elizabeth,
I had the same thoughts while in school. I did not want to have loans forever and definitely was eager to pay them off as fast as I could. My first step was to work while in school. I had a student job in the admissions office which was flexible and easy to balance with attending classes and doing homework, etc. I was always trying to save while in school. I worked throughout each summer by babysitting and eventually getting an internship. Once I graduated, I did have a full time job and could've moved out of my parents house and lived independently, but I decided to stay at home for some time so I could apply payments to my loans. Each month I would get my paycheck, save a percentage, pay off any credit card payments incurred that month, and then apply the rest to my loans. The key to paying off the loans faster is to pay more than the minimum required. Additionally, some companies do help with paying off student loans (PwC is one of them). I would do some searching online to understand the details of your loans and what your options might be. Good luck!
I had the same thoughts while in school. I did not want to have loans forever and definitely was eager to pay them off as fast as I could. My first step was to work while in school. I had a student job in the admissions office which was flexible and easy to balance with attending classes and doing homework, etc. I was always trying to save while in school. I worked throughout each summer by babysitting and eventually getting an internship. Once I graduated, I did have a full time job and could've moved out of my parents house and lived independently, but I decided to stay at home for some time so I could apply payments to my loans. Each month I would get my paycheck, save a percentage, pay off any credit card payments incurred that month, and then apply the rest to my loans. The key to paying off the loans faster is to pay more than the minimum required. Additionally, some companies do help with paying off student loans (PwC is one of them). I would do some searching online to understand the details of your loans and what your options might be. Good luck!
Thank you. :)
Elizabeth
Katya Lev
Financial center manager
117
Answers
New York, New York
Updated
Katya’s Answer
Hi Elizabeth, I recommend to start paying off your student loans if possible right after you graduate. Yo could defer your payments up to 6 months;however, if you have a variable interest or a fixed one-it will continue to accrue and your principal balance will grow higher then the original loan.
Don’t forget, you already have interest that you need to repay -you want to at least make a monthly payment to not prolong the payoff process of the loan.
Don’t forget, you already have interest that you need to repay -you want to at least make a monthly payment to not prolong the payoff process of the loan.