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The day you graduate college will forever be a memory you’ll never forget. But for a lot of students, a new challenge begins. Whether you were in school for only two years or ten, it’s time to start paying back your student loan debt. And that’s easier said than done. Most people struggle with this, even if they got a good job right after.

Depending on the job market, you probably won’t get a great job right after. And if you do, there’s a lot of ladder steps to climb before you get to your desired salary. Life after college isn’t easy. Just tell the millions of people who went to college during the decade-long recession. Many graduates were stuck working fast food because that’s the only work they could get.

Regardless of your job situation, your first month of student loan debt payments begin in a few months. Whether you’re ready for it or not. Are you settled into your new place? Do you have transportation? Can you afford health insurance? None of those questions matter to your debtors. You owe them money and it’s time to pay them back.

So, what is your first step? Perhaps you have a lot of expectations about life after college. This includes people who have long graduated but still don’t have your bearings yet. You can attest to the unique challenges that happen to college grads with mounds of student loan debt. The worst part is, this mountain of debt will forever follow you around.

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The Student Loan Debt Crisis

Here is the grim reality for those with student loan debt: 72% of graduates from the Class of 2017 owe on average $37,000. That can take a decade or longer to fully pay off if meeting minimum payments. This is never a great way to start adulthood. It’s forcing former students to delay major life decisions while they figure it out.

If you have student loan debt or are about to graduate this year, you need a plan. You have to figure out a way to keep your budget intact. That might mean living on as little as possible while pumping every extra dollar you have into your debt. That’s the only way to become free of it sooner rather than later.

Here are ways you can budget your money properly to conquer your student loan debt:

1) Create a Budget

This might seem like an obvious step, but you’d be amazed by the number of people who don’t budget. What they can’t afford on their own, they just grab with credit and worry about it later. Getting caught in this trap is the worst thing you can do. Paying back hundreds per month towards your student loan debt won’t give you much extra money.

Making payments towards credit purchases, including interest, is the wrong choice. Yet, this is what a lot of people do. If this sounds like you, it’s time for a bit of financial discipline. Put yourself on a budget. Sit down with your books and plan out the next months and years in advance. Determine what you need for food and other essentials and go from there.

2) Live Like You’re Back in College

Once you’ve created a budget, you’ll get a larger picture of where you’re at. But there are still financial decisions you might not be thinking of in your mid-20s, like retirement. Many people with student loan debt don’t have enough extra money to worry about retirement or a rainy-day fund.

That’s because they’re so busy trying to live it up. They have expensive cable packages, brand new cars, and grab the latest model smartphone each year. Of course, this doesn’t describe every young adult. Many have started a family and live paycheck-to-paycheck. Yet, despite this, there are things we can cut out of our budget.

http://financialhelpers.com/7-steps-for-paying-off-your-student-debt-faster/

In the short term, consider living like you’re still in college. Share the rent and utilities with roommates. Eat cheaply. Get Netflix and Hulu instead of expensive cable. Carpool and use public transportation. Cut costs wherever you can. If you pour every available dollar you have into your student loan debt, you can pay it off in a few short years.

Once your debt is paid off, you will be financially free! Your credit score will be dramatically improved and life outside of college can begin.

High amounts of student debt don’t just plague the young. No, more than 44 million Americans are buckling under the burden of over $1.5 trillion. Many people who graduate can spend the next 10-20 years paying it all off. It can be nearly as expensive as leasing an expensive luxury vehicle with high payments and interest.

It wasn’t too long ago that we shared some quotes from Shark Tank’s Kevin O’Leary. He talked about doing whatever you can to get rid of your student debt as soon as possible. That means waiting to spend your money on other things until that debt is paid down. If you can live frugally and pump extra money into the loan, you’ll be set.

Call Now 844-332-2079There are other strategies as well. Here are 7 steps for paying off your student debt faster:

1) Pay Extra as Often as You Can

This one might sting a little bit. One of the biggest mistakes people make is only paying the minimum balance. But it’s like with your credit card. If you make the minimum balance, you’re only putting minimum effort into it. That gives interest and other charges a chance to catch up. If you’re only putting a little money towards the principal, how do you get ahead of it?

That doesn’t mean you have to pay extra every month. But it does mean you should consider paying more whenever you get the opportunity. For example, put off that expensive vacation. Don’t waste your tax return money. Buy a beater for a car. All that money should go towards your student debt. When it’s paid off, you’ll have all the financial freedom you can handle.

2) Make Two Payments

There’s a certain trick that can help you pay off more of your student debt. It might seem strange at first, but it works. If you owe $400 per month, pay $200 around the 15th and $200 on the 30th. You might think the math is off, but by doing it this way, you actually make 13 whole payments in a year. That gives you an extra month you paid off!

3) Don’t Forget Auto-Pay

This might seem like it won’t help too much, but it can! The biggest part of the process is ensuring you tackle your student debt every month. People sometimes forget, become delinquent, and it works against them. By setting up auto-pay, it’s automatically deducted. And some lenders might even give you a discount for setting it up.

4) Refinance Your Loans

This can be a big one down the road! When you first start out going to college, you don’t have a track record of steady work and good credit. That hurts you. But, over time, you will be able to prove a good work history and improve your credit. Refinancing your student debt is always a great idea!

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By refinancing, you’re taking out a new loan to pay for the old that. Because your credit has improved, your new loan will come with a much better interest rate and lower payments. It makes making payments a whole lot easier!

5) Does Your Company Offer Repayment Assistance?

There are a lot of companies out there that do what they can to recruit the best talent. They offer 401(k) and profit-sharing incentives. These days, many companies are realizing the burden of student debt and offer repayment assistance. It doesn’t hurt to ask!

6) Volunteer Your Time

There are companies out there, like SponsorChange, who loves helping others. In exchange for volunteer, non-profit work, they offer student loan repayment. These are companies that could use your skills. Once each project is completed, they will offer payments towards your student debt. It’s a great way to support a cause you’re passionate about and pay down debt.

7) Create a Plan

This is super important. If you watch Dave Ramsey, you know he has had a lot of success helping others get rid of their debt. How does it do it? He puts them on a plan. That plan might include some of the things listed in this article. It will require frugal living until the student debt is paid off.

If you don’t pay off your student debt quickly, it will encroach your life in every way. It will prevent you from buying a house, a car, saving money for retirement, and more. The quicker you get it out of the way, the better!

A new paper from the Federal Reserve has revealed that there’s been a 20% drop in homeownership among young people. Normally, the end of college signifies the start of a new career. That career often leads to homeownership and maybe even the start of a family. But, things aren’t the same as they were just a decade ago. Student loan debt is to blame.

The Federal Reserve is finding that the $1.5 trillion worth of student loan debt is changing the economy. And not for the better. As the next generation goes through high school, we’re seeing the last of the millennials make their way through. Perhaps no other generation has had it as difficult as them.

The Great Recession has stunted their economic growth for the last decade. A lot of colleges made big promises to lure in the most vulnerable. They said they had incredible job placement rates. So, people bought in, signed the dotted line, and grated four years later. Instead of the job they were promised, they got buried in student loan debt.

The thing about student loan is, it doesn’t go away. If you don’t have a job or find yourself struggling, it doesn’t matter. The payment is still due every month. With no extra money, young adults are finding it nearly impossible to invest in the future. They’re not saving for retirement, buying health insurance, or a home for their growing family.

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How Is Student Loan Debt Impacting Home Ownership?

This new study by the Federal Reserve shows just how much student loan debt is hurting young adults. Homeownership rates fell 9% over the last decade. That might not seem a lot, but it’s a major hit to the economy. It equals about 400,000 potential homeowners who wanted to buy a home but couldn’t. And the Fed blames student loan debt as the culprit.

“We’re still selling people on the idea that higher education, no matter its cost and no matter the level of debt, is the ticket to a better more stable, more healthy life,” said Julie Margetta Morgan, a fellow at the Roosevelt Institute. “For many people, that’s not the case.”

This study is yet another revelation about how much student loan debt is impacting young adults today. It’s not just the housing market, but every other financial aspect of their life. For example, millennials are waiting longer to get married and have children. They are living at home longer. They’re also defaulting on their debt at a much higher rate than any other generation.

Millennials also have little-to-no savings. It was recently revealed that the majority of young people don’t have access to even $400 to pay for an emergency. And as previously stated, they’re not saving for retirement. Life is an all-around struggle for them.

The Economic Winds of Change

Bubbling up to the surface from this student loan debt crisis are new financial goals and practices. Never before in American history has there been such a change. Socialist ideas are becoming the new norm. We saw this in the 2018 midterms as new, upcoming stars were elected into office, most of them with socialist ideals.

They have their own ideas about paying off the student loan debt. But this isn’t the only change how America sees the future. Unlike previous generations, millennials do not view home ownership as a worthy investment. A lot of that has to do with watching their parents go into foreclosure during the Great Recession.

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Furthermore, millennials are more likely to group together in cities where the cost of rent is astronomical. Consider New York and Los Angeles. Who can afford a home in these cities besides the super-rich? Instead, if they’re not living at home, they’re grouping together and sharing the rent. It’s not worth it to buy a home in an expensive market with a limited income.

It would certainly seem as if the American Dream is coming to an end. Or, at the very least, the idea of the American dream is rapidly evolving. Student loan debt is at the very center of this debate. Hopefully, opportunities will continue to grow as the economy improves

Beer and college often have a way of ending up together. Mini-coolers, frat-house parties, and so much more. Beer is apart of Americana. In America, when people are hurting, we often step up to the plate. That’s what one beer company is doing, offer millions in student loan relief. You might have a shot at winning your cut of the prize!

Natural Lite, owned by Anheuser-Busch, wants to help bring student loan relief to the masses. They look out and see many millions of people suffering under the burden of their debt. The average student leaves college $37,000 in the hole. That’s a lot of money that can often take decades to fully pay off.

This program isn’t a new one. In fact, it’s Anheuser-Busch resurrecting their College Debt Relief Program. This was a contest they ran last year, giving $1 million to a handful of Natural Light drinkers. Natural Light first ran this contest as a way of allowing people to “remember college for the good times.”

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How to Win Student Loan Relief Prize

Natural Light is doing this year’s contest a little different. They want fans of the beer to create a fun video and post it on social media with the right hashtags. The videos must be with the beer and showing a fun and spontaneous lifestyle. They will then score each video. 70 people are slated to win some prize, between $10,000 and $40,000.

That’s not all! Natural Light wants to offer more student loan relief. They want people to be able to enjoy Super Bowl Sunday, regardless of how much debt they have. So, they’re going to give 151 drinkers of their beer $351. That’s the average monthly student loan payment. Rather than sacrificing to pay the debt, Natural Light wants those people to party.

Student loan debt has hit $1.5 trillion dollars. Natural Light is tapping into the anxiety caused. This is why they’re offering student loan relief to many of their fans. Most people suffering under this burden are young adults, so this is a great way to advertise. Millennials have been taking the brunt of the ordeal.

Good Press

Of course, Natural Light is trying to seek good press from this contest. They aren’t the only ones taking advantage of this crisis. A few months ago, we reported the start of a new game show that offered student loan relief as a prize. If you won, your debt would be paid for. Many companies are also starting to offer benefits that include loan repayment.

http://financialhelpers.com/student-loan-debt-officially-doubles-since-recession/

While it seems these companies are willing to help for a little good press, the government still owns this. Still, they refuse to help solve this crisis. In fact, they even appear to be working against the interests of millions of suffering Americans. The federal government owns it all and could offer student loan relief if they wanted. They clearly don’t.

Soon, this debt is going to massively and negatively impact the economy. At some point, they will be forced to stand up and help the people. We’re still holding onto hope and we’ll break it to you when it happens.

As we enter the new year, student loan debt continues to climb at a rapid pace. Last month, this debt hit the record of $1.465 trillion. The reason why this type of debt continues to grow is because borrowers are having a difficult time. They don’t know how to pay back so much student loan debt. There are so many fiscal risks that come along with it.

It’s difficult to imagine how hard life would be to have that much debt in the middle of an economic crisis. Yet, that’s what millions of Americans went through over the last decade. Since June 2009, student loan debt has doubled. It was a paltry $675 billion. That is a lot of money, but nothing compared to what it is today.

“Over 90% of student loans are guaranteed by the U.S. Department of Education. Meaning that if a recession causes a rise in youth unemployment and triggers mass defaults, this contingent liability could prove burdensome for the U.S. government budget,” said Paul Della Guardia, an economist at the Institute of International Finance in emailed comments.

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The Student Loan Debt Crisis

The hardest hit time for the student loan debt crisis was 2012. Loans handed out on this year defaulted at a much faster rate than any other year. According to Bloomberg analysis, this is the year when students had a more difficult time making monthly payments. This is compared to students who receive similar loans either before or after 2012.

These loans were taken out by young adults between the ages of 24 and 33. This is that age when adults are trying to establish their lives and their careers. To try to start families and build a home. Yet, when this age group graduated college, the unemployment rate was twice as high it is right now.

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This meant that so many Americans graduated from college with a twinkle in their eye, but couldn’t find any work. There student loan debt kicked in and they couldn’t afford it. The Bureau of Labor Statistics indicates that it took this group 3 times longer to find a job. The problem is, 2012 only marked the beginning of the crisis.

A Continuing Dilemma

While the job crisis appears to be over, the student loan debt problem continues. You had about a decade where not only jobs were scarce, but interest rates continue to climb. In fact, the current interest rate is 100 basis points higher than in 2012. This means that the people couldn’t afford their debt now have even more to pay.

There are 2.7 million student loan debt borrowers out there who owe over $100,000. That’s a lot of money! That’s a house mortgage. Having that much debt makes it nearly impossible to get a loan. And with increasing interest rates, is nearly impossible to get out from underneath it. This is a crisis that continues to grow with no relief in sight.

No one takes out student loan debt expecting they’ll have trouble paying it later. In fact, most borrowers go into college expecting a good job to come out of it. You put in all that hard work, and then what? Sometimes, plans don’t work out as intended. Life gets in the way, as well as the economy and other factors.

Currently, 44 million Americans owe over $1.53 trillion worth of student loan debt. That’s the second highest debt out there today. The worst part is, the debt keeps piling up. Every year, more than one million students go into default when they can’t pay. To go into default, you have to miss over a year’s worth of payments.

Going into default is a nightmare for anyone with student loan debt. Even though you’re not paying, the interest continues to climb. That means the total you owe grows with each passing month. Not to mention, your credit takes a massive hit. If you had hoped to buy a house or get a new auto loan, think again. Going into default cancels all of that out.

If you think bankruptcy is the answer to solving your student loan debt problem, think again. Only in extremely rare circumstances will it be discharged for that reason. This is one debt that if you owe, you’ll have to pay it back regardless of your circumstances. But, there is one option that might help you.

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Can You Settle Student Loan Debt?

While bankruptcy and other sorts probably won’t happen, you can settle your student loan debt. A word of warning: we are not saying to do this. We’re writing this article as a last-ditch possibility that may not even happen. So, what does it mean to settle your debt with the lender? It’s really about negotiation.

If you’re way over your head and deep into default, you may find that your lender is willing to talk. If it becomes obvious that you’re not going to pay your bill, the lender may decide to settle. To settle your student loan debt means that you can reach an agreement with the lender to take less than the full amount.

Lenders might get desperate to get some of the money back. This isn’t the same as student loan forgiveness or loan discharge. This is a unique and special deal the borrower and lender will make to get the student loan debt discharged. There are a few incidences of president where this has happened before.

Typically, the debt has to be in default. If you’re paying on your student loan debt, then the lender has no reason to do this. They’re getting their money back with interest. If you’re not paying and you’re deep into default, that’s a different story. They will do what they can to get you to start paying again.
“If you’re making payments on your loan, and everything is in good standing, you’re not going to be able to just call your loan servicer up and say, ‘Hey, will you take 50 percent?'” says Adam S. Minsky, an attorney specializing in student loan debt.

How to Obtain Debt Settlement

The best way to do anything about your student loan debt is to contact your loan servicer. If you’re deep into default, you might think that’s the last thing you want to do. But they hold all the keys and will ultimately make the decision to lower your balance. At the end of the day, going into default and avoiding the problem won’t help you.

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Despite who your servicer is, your loan is owned by the federal government. They have a handful of pretty powerful tools to make sure you pay them back. They can garnish your wages, take your tax return, and more. Your servicer can also pass your loan off to a collection agency and revoke your driver’s license!

It’s never worth it to go into default. If you’re struggling to pay your student loan debt, call the servicer and make a deal. Ask them about a settlement and negotiate it to something you can pay.

U.S. student debt has climbed at a faster rate in 2018 than at any other time in our nation’s history. When compared to all other forms of debt, it ranks #2 behind mortgage debt. Yes, student debt is higher than credit card and automotive debt. That’s very difficult to imagine! A lot of it has to do with the number of new students going to college.

Our population is growing and the vast majority of young people plan to go to college. It’s also the next generation who will be saddled with more student debt than their parents and grandparents…maybe even combined! But, as more young people go to school, the more money they’ll borrow.

Of course, that’s not necessarily bad. Going to college is a right of passage. If you want the higher paying jobs, then a degree is necessary. By 2020, it’s expected that as much as 65% of all job offers will most likely require a minimum of a bachelor’s degree. This is because technology is advancing and the job market is changing as a whole.

But doing something with your degree depends on the economy. Millennials today not only have higher amounts of student debt, they also can’t find work. They’ve needed to fight to overcome the Great Recession that hit the past decade. Many millions of students went to college when work was scarce and graduated to find they had no opportunities.

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Are College Degrees Still an Investment in Your Future?

When many people start college, they think of it as an investment in their future. Except, they can’t afford the extremely high price of going to a good school. Community college is reasonably priced when compared to a university. The problem is, the cost of a college education has quadrupled in the last 30 years.

College now requires the person to acquire as much as $25,000 worth of debt just for a bachelor’s degree. Private colleges are even more expensive, sometimes as high as $50,000. The only way to make it for millions of students is to pile on student debt in record amounts. They sign the dotted line because it seems worthwhile.

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But, by the time they graduate and it’s time to pay up, many begin to regret their decisions. They are frustrated that they didn’t plan better or fully understand how difficult it would be. Millennials have a reputation for still living at home after graduation, and this is why. They simply can’t afford their student debt payments.

Student Debt and the Economy

The average monthly payment students are required to pay back on their loan is $351. This payment sticks with them, sometimes for decades! Many pay on their debt for years, but interest has only piled on to the total. This only makes their situation worse. It’s so bad, nearly 10% of all student debt holders default after just two years.

The worst part is, there is no help for them. They cannot declare bankruptcy and wipe it away. Not paying on it and default doesn’t stop the total from increasing. It also won’t fall off your credit after a certain period of time. If you have student debt, it’s yours for life until it’s paid off. That’s a major problem.

The problem is growing exponentially. The Brookings Institute says that by 2023, 40% of all student debt holders will default. CNBC calls this debt a bubble, but MarketWatch and Fox News don’t hold back when saying it’s a crisis. It’s like the Great Recession all over again. Lenders will have to be rescued by the taxpayers.

How does this look for the long term? Well, young adults cannot afford to buy cars. They’re putting off major life decisions, like having children and getting married. They can’t get a mortgage. And they’re broke. Jobs have been scarce for the better part of a decade. Millennials are so broke, in fact, that they’re killing numerous industries.

The experts, like Fed Chief Jerome Powell, are expecting the worst. “It’s not something you can pick up in the day right now, but as student loans continue to grow they can absolutely hold back growth,” he warned.

Time will only tell what happens from here.

As student loan debt continues to rise dramatically, it’s putting many families underwater. Currently, 44 million Americans owe over $1.53 trillion worth of student loan debt. That’s the making of a new economic crisis that’s forcing families to make hard decisions. A lot of these hard decisions involve delaying things like buying a home, getting married, and having kids.

When a young person goes to college, they don’t really understand the burden student loan debt will have later. They expect to have a well-paying job once they graduate. Reality bites hard. After they walk across the stage, they’re saddled with tens of thousands of dollars’ worth of debt.

It’s almost like deciding to buy a luxury car, but you don’t have any way to pay for it. Immediately you’ll have to start making payments, but you don’t have the money. Yet, the student loan won’t go away. They won’t repossess it if you can’t pay. It will stick with you until you pay it. And that makes a lot of people desperate to find help.

To learn more about how you can get help paying your student loans, call Financial Helpers today! We’d love to hear from you. You can reach us at:

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Americans Desperate for Student Loan Help

According to a survey from Self Lender, many millennials are willing to give up perks for help paying student loans. In fact, they’d be willing to do almost anything for help from their employer. Here are several of the key statistics found in the survey of 1,000 millennials:

• 23% would give up working from home.
• 20% would give up paid time off
• 15% would give up 401(k) matching
• 6% would give up health benefits

To have millennials willing to give up health benefits for help paying their student loan should be evidence enough. They’re desperate for help. Some sort of student loan repayment plan appears to be a great benefit for employers to consider. It would make their company an attractive destination for intelligent young workers.

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Of course, higher salaries are often preferred, but student loan debt assistance would help lower stress. Employees struggling under this burden don’t often perform well. They will struggle with not making enough money. That predicament will force them to make even harder decisions.

Employees who don’t feel financially secure often don’t work as hard. They start to feel as if they’re breaking their back for minimum gain. Many of them are still living at home because they can’t afford to pay both their student loan and rent. This is what makes debt repayment a great idea for any employer.