Here are some common student loan plans we put together for clients (all assuming a 7% average interest rate): *To pay off $20,000 in student loans, it will cost: $230/month over 10 years. $400/month over 5 years. *To pay off $40,000 in student loans, it will cost: $465/month over 10 years. $800/month over 5 years. *To pay off $60,000 in student loans, it will cost: $700/month over 10 years. $1,190/month over 5 years. To pay off $80,000 in student loans, it will cost: $930/month over10 years. $1,585/month over 5 years. To pay off $100,000 in student loans, it will cost: $1,165/month over 10 years. $1,990/month over 5years. Now for the person that followed our guideline of keeping your student loan balances below 1/3rd the starting salary of the individual, they can knock these balances out even quicker with ease. But a lot of people were shoed into these situations with very little guidance and arent making anywhere they need to be to make these happen in 5 or 10 years. So what do you do? You either A. boohoo and cry about it B. Get on some rinky dink federal student loan forgiveness program (or private employer program) that really doesnt work like its advertised or C. Get PISSED OFF and FIRED UP so you can eliminate your liabilities. Once you eliminate your most pressing liabilities (consumer debt like credit cards) and aim to raise your income at the same time then you can efficiently knock out your last liability (student loans). By doing this youre pretty much going to be unstoppable. This is the only way this will happen for most people. I mean you could always get a life insurance settlement…but if waiting for people to die so you can get 1/6th of a settlement between you, his new wife and his 4 other kids, is your Financial Action Plan in life…
Posted on: Fri, 18 Apr 2014 01:32:42 +0000
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