Paying Off Student Loans

April 28, 2011

Today’s post covers the ever so popular topic of student loans. With tuition increasing annually, student loans are becoming both more difficult to pay off as well as plan for financially.

MSNBC has a great post on different options on how to best repay student loans.

The post covers differences between the standard loan repayment plan and the extended repayment option. Both of course, great options, but depending on your goals and financial status post-graduation, you may lean towards one more than the other.

One thing that you may not have known is that if you’re extremely cash-strapped, there’s an option that allows for you to signup for income-based repayment plans.

As the student loan debt reaches over $1 tillion for the first time ever, it feels like some universities are not doing everything they can to educate students on the dangers of defaulting on loans.

Our 3 Tips:
Moving Home? Wherever you’re planning to move after college, whether it is back home or to a studio in the city, or to a new apartment with friends, plan early. Setup a contingency plan should something happen to your job. Will you have enough money to pay for rent for a few additional months? If you have a roommate, make sure to lean on each other to do the cooking and cleaning. Save money by grocery shopping together and reducing duplicate produce purchases.

Know How Much You Owe – Do you know how much you owe or are you paying blindly? Setup some goals and start achieving them!

Speak With An Accountant – Student loans do have some tax benefits. Speak with your accountant or a CPA to see how to best move forward with a solid repayment plan.

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