According to Millennial Personal Finance, 60% of college graduates have debt, with the average amount owed sitting at $28,000. Owing that kind of money might lead to a few sleepless nights, to say the least. Especially because young people feel forced to put other long-term financial goals on the back burner until they’ve paid off their debt. But it’s a well-known fact that the sooner you start saving for milestones like retirement, the better off you’ll be.
Freedom Debt Relief wants millennials to be in the best financial situation possible. That’s why we’ve put together this guide with tips to help you put yourself in a position to pay back your student loan debt.
Bank on Yourself
The first tip is simple but important. Don’t try to wish your debt problems away. As tempting as it is to ignore your debt and hope you’ll win the lottery, there are no worse strategies for eliminating debt. The same goes for counting on the federal government loan forgiveness program. Unfortunately, the eligibility criteria for the program are extremely strict.
Qualifying requires working for a government organization or tax-exempt charity for a number of years. Moreover, you’ll still have to pay your debt off for ten years. This is an awesome program for those who qualify, but the other 95% need to take more concrete steps.
Pay More
It may not be intuitive, but the more you pay, the more you save. Paying off more of the principal each month leads to savings on interest in the long run. This can add up to thousands of dollars over the course of your repayment. Freedom Debt Relief doesn’t want you paying unnecessary interest.
Making wise decisions on how much of your student loan to pay off each month requires a clear view of the overall picture. You’ll need to weigh the cost of the interest rate on your loans versus what other investments are returning to determine how your money is best placed. You’ll want to pay off a loan with the higher interest rate as quickly as possible. Freedom Debt Relief recommends working with a professional in finance to make these big picture decisions.
Refinance Your Loan
Refinancing your loan is a great way to get a more competitive interest rate. Many students will also have the option to combine multiple loans into one. The lower interest rate can save a significant amount of money over time.
Freedom Debt Relief knows that refinancing or consolidating loans could mean thousands of dollars saved over the life of the loan repayment. But, while it can be a savvy move if you do it right, make sure you’re reading all the fine print when it comes to refinancing. Even a low-interest refinance may be offset by expensive upfront fees and hidden costs.
Workplace Benefits
It’s common knowledge that many employers match your 401(K) contributions, but did you know many workplaces offer student-loan repayment benefits? With the prevalence of this problem throughout the nation, it’s no wonder companies have begun to include it in their benefits packages.
Some companies offer a set amount that they’ll contribute to your loan repayment each month. Others base how much they contribute on how much you contribute. Talk with your HR department to figure out what your company offers. Freedom Debt Relief recommends contributing the full amount your company will match, so you don’t leave free money on the table.
Freedom Debt Relief wants millennials to be in the best financial situation possible. That’s why we’ve put together this guide with tips to help you put yourself in a position to pay back your student loan debt.
Bank on Yourself
The first tip is simple but important. Don’t try to wish your debt problems away. As tempting as it is to ignore your debt and hope you’ll win the lottery, there are no worse strategies for eliminating debt. The same goes for counting on the federal government loan forgiveness program. Unfortunately, the eligibility criteria for the program are extremely strict.
Qualifying requires working for a government organization or tax-exempt charity for a number of years. Moreover, you’ll still have to pay your debt off for ten years. This is an awesome program for those who qualify, but the other 95% need to take more concrete steps.
Pay More
It may not be intuitive, but the more you pay, the more you save. Paying off more of the principal each month leads to savings on interest in the long run. This can add up to thousands of dollars over the course of your repayment. Freedom Debt Relief doesn’t want you paying unnecessary interest.
Making wise decisions on how much of your student loan to pay off each month requires a clear view of the overall picture. You’ll need to weigh the cost of the interest rate on your loans versus what other investments are returning to determine how your money is best placed. You’ll want to pay off a loan with the higher interest rate as quickly as possible. Freedom Debt Relief recommends working with a professional in finance to make these big picture decisions.
Refinance Your Loan
Refinancing your loan is a great way to get a more competitive interest rate. Many students will also have the option to combine multiple loans into one. The lower interest rate can save a significant amount of money over time.
Freedom Debt Relief knows that refinancing or consolidating loans could mean thousands of dollars saved over the life of the loan repayment. But, while it can be a savvy move if you do it right, make sure you’re reading all the fine print when it comes to refinancing. Even a low-interest refinance may be offset by expensive upfront fees and hidden costs.
Workplace Benefits
It’s common knowledge that many employers match your 401(K) contributions, but did you know many workplaces offer student-loan repayment benefits? With the prevalence of this problem throughout the nation, it’s no wonder companies have begun to include it in their benefits packages.
Some companies offer a set amount that they’ll contribute to your loan repayment each month. Others base how much they contribute on how much you contribute. Talk with your HR department to figure out what your company offers. Freedom Debt Relief recommends contributing the full amount your company will match, so you don’t leave free money on the table.