Congratulations! You (or your child) is finally getting ready to graduate from The U of __________, and are ready to enter the real world. Fresh with ideas and enthusiasm, you land your first job and the future looks bright. While all of this excitement has consumed your thoughts, you have something in the back of your mind that is causing anxiety… STUDENT LOAN DEBT!!!
This has been a growing area of concern for many of our clients and their children as they are entering the work force directly out of college. They begin their “adult life” in a bigger hole than most did even after purchasing their first house a decade or so ago. Back in the good ole days, at least our debt was attached to a physical piece of property that could be sold for value. Today, if you have student loan(s) coming out of college, you better be able to find a job that pays enough to cover living expenses in addition to making the student loan payments.
The question for most becomes: How do I remove this anxiety and break it down into a manageable plan so that it does not consume my mind as I am trying to go out and make an impact on the world? This is where a little knowledge and discipline can go a long way. You need the confidence that you CAN pay off your loans AND still go after some of your other financial goals. Gaining knowledge in the following areas will help you make educated decisions:
- What are the interest rates on the loans?
- Can I/Should I consolidate any loans?
- Do I have any resources that could offer better terms? (Ex. family members, bank, etc…)
- What do I expect my income track to be over the next several years?
- What type of payoff plan should I choose? (Ex. 10 year plan, pay as you earn, etc…)
- Does my current employer (or any potential employer) offer student loan payoff incentives for staying a certain length of time?
- Can my loans ever be forgiven? If so, is the amount forgiven taxable?
While these are just some of the questions, having these answered will give you a great starting point. From there, putting together your game plan is the next step. We have helped many of our clients over the years engineer a plan that allows them to see the light at the end of the tunnel and also start planning for their other financial goals. This not only removes their worries about paying off their debt, it also gives them the confidence that they can achieve a large financial goal and continue to look at a bright future! Get Started Today!