Haley Ruiz

8/28/18

Student loan reading

A common tip I found in most of the articles: paying a little more than the minimum each month will pay off the loan faster and cost you less in interest. In addition to that, having an understanding of the type of loan you have and your repayment options is critical. That ensures you pay off the loans with higher interest rates first, like the lawyer suggested. (Good specific detail)

Some of the articles mentioned that loan servicers have different plans, such as a 10-year plan and a 25-year plan. Knowing your grace period before those plans are implemented is also important. Contributing what you can as early as you can, as little as it may be, will still be helpful in getting you debt free sooner.

There was a theme of suggesting that the student be knowledgeable and responsible about and with their finances in most of the articles as well. One resource the lawyer used was an excel spreadsheet that calculated how long it will take to pay off her student loans. That same resource could be used to help you live responsibly, like budgeting for your essentials. Another tip the lawyer had was to allocate some money to savings every month. Putting a little away for a long time adds up.

Something else the lawyer did to ensure her success was to get a professional degree in a field she seemingly excels in. A J.D. makes her a more competitive candidate for jobs in general, and if she was in the top of her law school class, she gets preference for big law firm jobs. A well-paying job out of college/graduate school ensures that you can start paying back your loans right away. Another smart move on her part was to live at home rather than pay for an expensive studio. She also cut out all the extras. She lived without for a time, but now she has disposable income. She lived below her means so that she could live comfortably in the future. That’s living responsibly.

Have students been taught salary negotiation? Do students feel like they can trust financial aid advisors, even though many feel as though they can’t trust their academic advisors? (great question) Do students think budgeting and not spending on nonessentials is important now (i.e. drinking at the bars every weekend but complaining about how much debt they have)?

https://www.cnbc.com/2018/05/14/how-to-recoup-the-cost-of-college-in-less-than-3-years.html

https://www.cnbc.com/2018/05/16/this-simple-trick-can-save-over-1400-on-your-student-loan.html

http://www.finra.org/investors/highlights/congrats-grads-now-time-to-think-about-debt

http://time.com/money/5359103/student-loan-debt-payoff-lawyer-180000/

Excellent post. Good questions. 5 of 5 points