What is the smartest way to pay student loans?
What is the smartest way to pay student loans?
Here are seven strategies to help you pay off student loans even faster.
- Make extra payments the right way.
- Refinance if you have good credit and a steady job.
- Enroll in autopay.
- Make biweekly payments.
- Pay off capitalized interest.
- Stick to the standard repayment plan.
- Use ‘found’ money.
How much student loan debt will you have After graduation?
Statistics show the typical amount of student loan debt in 2017 was between $20,000 and $25,000, and the class of 2016 graduated with an average of $37,173 in debt. This could translate into a monthly student loan payment of $280 or more—though the exact amount will vary depending on loan interest rates and repayment plan options.
Is college education worth the risk of debt?
Weighing the risk of mounting debt against the reward of continuing your education is not only prudent, but it can impact your finances for years to come. Traditionally, it’s been easy to justify the expense of a college education because earning a bachelor’s degree makes it easier to get a better paying job.
How much will you be paying in student loans?
You would likely be paying about $750 per month in student loans. The average graduate with a four-year degree earns about $43,000. At this income level, your loan payments would be your second-largest expense next to housing, and would be close to what you are spending in food and transportation combined.
Is easy access to student loans a good or bad thing?
The bottom line: Easy access to student loans is a good thing. Most people need to take on debt if they are going to graduate and reach their full career potential. However, the availability of student loans is a double-edged sword, as many borrowers take on debt levels that far exceed the reality of future starting salaries.