5 Tips for Student Loans
In the past, it was common for people to stop working and enter retirement once they considered themselves financially stable. In today’s world, there are an increasing number of older adults who work well into their 60s and 70s. This is largely due to changes in employment trends, such as delayed retirements or a lack of pension plans. One major factor that also impacts employment opportunities after a certain age is debt from obtaining a college degree. A recent study indicates that a whopping 38 percent of students report using student loans to pay for school expenses.
1. Choosing a career path
A first step toward minimizing repayment during those latter years involves making sure you have chosen the right profession before starting school. While many degrees will provide viable career opportunities, some will not. Be sure you know which career path is the best fit for you before investing in pricey education.
2. Keeping student debt to a minimum
Having an understanding of what your life after school might look like can reduce the amount of debt you acquire during your enrollment. For example, if you are able to work during college, consider this option instead of taking out loans. Also, make smart borrowing decisions by only applying for need-based grants and scholarships rather than credit-based loans. It also helps if one parent stays home or works part-time to help with tuition payments and other living expenses. If both parents need to work full-time while attending school, that should be considered carefully as well because it could result in more debt.
3. Minimizing debt repayment
Upon graduating from college, it’s recommended to scrutinize loan repayments and minimize interest payments to the greatest extent possible. For example, consolidating federal student loans into a single monthly payment could be helpful for this purpose. Another smart move would be paying down your smallest debts first, which will help whittle away at the overall balance owed while also reducing interest charges due on that debt. Also remember that if you work for a non-profit or government organization upon graduation, certain federal programs may provide assistance with repayment of student loans as well as forgiveness after 10 years of payments (Public Service Loan Forgiveness program).
4. Retaining healthy habits
Taking care of your health and well-being during those later working years can go a long way toward reducing debt and enjoying retirement. This starts with eating healthy, regular exercise, and regular doctor’s checkups. In addition to feeling better about yourself, this will also ensure you have the strength to work as long as possible before retiring. If necessary, taking on a second job or less desirable employment may be something to consider so you can pay off that student debt without compromising your quality of life until retirement age.
5. Enjoying life
By following some or all of these tips, it is possible for recent graduates to avoid having a mountain of student loan debt at traditional retirement ages such as 65 years old. It certainly helps if you’ve chosen a career path that’s ideal for your well-being because this will reduce healthcare costs during the golden years. It also helps to stay healthy and financially stable by eating right, exercising regularly, managing debt responsibly, and living within one’s means during the early working years. Remembering that life is meant to be enjoyed can certainly help graduates who are facing decades of loan repayments.
In the past, it was common for people to stop working and enter retirement once they considered themselves financially stable. In today’s world, there are an increasing number of older adults who work well into their 60s and 70s. This is largely due to changes…
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