“May your college Memories last longer than your student loan payments!”
Anonymous
As of March 2019, Americans owe over $1.6 trillion in federal and private student loan debt according to the Board of Governors of the Federal Reserve System. Over 65% of college seniors graduate with student loan debt, and the average amount owed was $28,650. Those with advanced degrees are looking at an even higher level of debt. According to NerdWallet, the median medical school debt in 2018, was $200,000., not including pre-med school debt. The monthly payments are taking a toll on the family budget, so much so that more than 11% of borrowers have defaulted on their student loan obligations. Another area where we see more debt than ever before and the fastest growing age segment with student debt is in older adults. Student loan debt for Americans 60 and over has increased 1,256% since 2004!
Often, older adults go back to school later in life to try to improve their marketability. Sometimes that works out for them; sometimes it doesn’t; having an advanced degree does not always guarantee a better paying job. Many people don’t realize that the collateral for their student loan debt is their future earnings. If you fail to pay back your student loans, the lender (government or the bank) can garnish your wages, your Social Security and offset or take your tax refund. These older Americans are not only paying off their own student debt but are often helping to finance their children’s or grandchildren’s education while living on a fixed income.
If you are struggling with tuition debt, for yourself or a family member, consider looking into the following options to lower your payments or even reducing what you owe:
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Student loan repayment assistance programs offered by employers
This is one of the hottest benefits that employers are using to lure new hires. Check with your employer’s HR or Benefits department to see you your company offers these benefit.
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Public service loan forgiveness or cancellation
There are programs designed to encourage public service that help schools, the military, and other public entities attract and retain talent while keeping wages modest.
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Federal student loan forgiveness or cancellation
There are circumstances when a college closure prevents a student from completing their studies or if credits will not transfer to another school and a loan may be forgiven.
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State-based and/or career-based programs that reduce student loan debt
Most states offer some type of loan repayment assistance. To find out if you qualify for programs search for your state in this resource created by The College Investor – https://thecollegeinvestor.com/student-loan-forgiveness-programs-by-state/
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Income-driven repayment plans that reduce payments
These repayment plans establish a more affordable student loan payment. They base the monthly loan payment on the borrower’s ability to pay, as a percentage of the borrower’s discretionary income. The discretionary income is based on the borrower’s income level and size of his or her family.
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Refinance and loan consolidation options through reputable companies.
By opting to refinance your federal loans, you are no longer eligible for special repayment plans or loan forgiveness programs offered through the federal government. If you have a high debt load, it is usually a safer bet to keep your federal loans, along with the option to apply for alternative repayment plans if needed. If you are confident in your ability to repay your loans over your given repayment term and are seeking to maximize savings, and you also have a good credit score and a healthy income, refinancing your federal loans could be a wise option.
Another resource that people often don’t utilize is StudentLoans.gov; it’s an easily navigable site that has a wealth of information and can help you manage and repay your loans.
Take action now; don’t allow student loans to deny you of a stress-free, debt-free retirement.
What we can do to help
We have a proprietary program that can help you eliminate ALL DEBT, including your student loans, mortgage, and consumer debt (credit cards, car loans, personal loans, etc.) usually is less than nine years without spending any more money, not taking any risk and not changing your lifestyle. Would you like to learn more? Give us a call at 574-234-1980 or visit our website at neeserinsurance.com. Financial freedom can be a reality! LIFE CHANGING VIDEO
