Swimming in a shark-infested tank college, graduates say they would do anything if it meant not paying back their student loans. That’s pretty aggressive and so is that debt. I’ve got my fellow Hornets who have student loans? However, I have so many friends who are, you know I’m 43 years old some of my friends out 30 years they are paying student loans still, in California there are 11 billion people in bet cosigning on loans for kids and grandkids. We’re talking about how to attack those student loans because inevitably the education is important absolutely.
There’s got to be a way to chip away at these things. Right and well there’s these crazy surveys out there again would you give up Netflix for life which would be a really great financial decision if somebody would just wipe out your debt but that’s usually not going to happen for folks and so the problem is really the average grade has about $37,000 in college debt. So they do need to look at ways to deal with it and make it a priority of their life. So the plan, of course, is the most important thing choosing some type of repayment plan. It is so the plan you really have eight different options if you have a federal student loan and you can change it at any point in time.
What most people don’t realize you could start with a plan based on your income if you’re new in the workforce not making as much money you can start there and then you can change it. later if you need to private loans don’t have as many options for you but there is a good tool the consumer financial protection bureau puts out and their website will help you understand which loan is really for you and the best repayment plan which of course goes without saying not to miss a payment but how crucial is it if you start missing a month or two well it is a big deal. What happens is your first payment is due within 290 days of you getting out of school. From that point if you start missing payments, it’s going to affect your credit score and so it is important that you really attack that date and one of the things, when I kind of talk about attack the debt if you kind of consider this.
Let’s say you had $35,000 of student debt and you’re paying 68% interest on the loan. If you chose a 30-year you’d pay an extra $34,000 of interest. That’s huge. That’s worth giving up a few late. the idea is as the picture looks like if you are thinking about long-term, you are thinking about buying a house in the future or any number of things that these student loans are affected you they really do and what happens is it affects people in both short term and long term the short term people with debt can’t buy a new car. Some are putting off marriage can’t get a new house in the long term. It affects the retirement plan by about $035. So if you had a $50,000 debt college loan debt, you’re going to give up on about $17,500 in retirement funds.