Just finished graduate school and am facing the challenge of finding a job and paying off $37,000 in student loans (hopefully within 5-10 years.) Any advice? Thanks!!
2007-01-17 11:24:13 · 8 answers · asked by emijea4 2 in Business & Finance ➔ Credit
Here is a link to a site that has a debt management software program, free. You input your income debts and living expenses and it returns to you an depth strategies plan of repayments. This is a start to sound debt management.
2007-01-17 13:55:44 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Start by taking a 6 month hardship. They will give it to you just for asking. This allows you to find a job, and get settled before you have to start paying on the loans. Second consolidate your loans into one at the lowest possible interest rate. This will keep your payments down. Then simply make the monthly payments as needed. You do not want to pay them off early because they are a low interest loan. You can save more by paying higher interest loans off first. Most investments will get you higher aftertax return than the savings you would receive by paying the loans. Instead take your extra money and invest in a Roth IRA, or a home. These will get you the most from your money in the long run.
2007-01-17 12:36:06 · answer #2 · answered by Ron B 3 · 0⤊ 0⤋
Get into real estate real early. Also start paying for a whole life insurance plan. Buy a fix-er-upper house, fix it yourself and then sell it. Take the profits from that to buy another fix er up house, fix it up, then get a second mortgage for the amount of your student loans. Pay off your student loans with that.
After a few years, take a 0% loan against your whole life insurance policy for the amount available and use that to pay off your first and second mortgage.
Now you only have a 0% loan to pay back that does not appear on your credit record, and you own your house free and clear. Go and buy another house and rent it out to someone for more than what the mortgage payments are.
Now take the extra money you get from renting the second house and pay back the 0% loan. When that is paid off, then apply the extra money to the second house. And while you are waiting around, take out another 0% loan from your whole life insurance and buy another house free and clear.
Fix and sell that third house. Pay back the 0% loan. and the mortgage on the second house.
Now you own two houses free and clear, have your school loans completely paid off, have monthly income coming in from the house rental, and have perfect credit.
From now on its all gravy for you. Congrats, you just won the game of Life!
2007-01-17 11:36:34 · answer #3 · answered by MrKnowItAll 6 · 1⤊ 1⤋
First, set yourself up on a budget. Most people do not know how much they spend, and actually end up wasting money.
Then, take all available money and begin paying off your debts in this order:
The smallest balance credit item first, while making minimum payments on everything else.
When that is paid off, then move on to the next one, using all available funds to pay that one off, and so on until you are debt free.
Do not use credit cards, loans, or any other means of obtaining debt, work on getting debt free.
2007-01-17 12:29:59 · answer #4 · answered by Robert S 3 · 1⤊ 0⤋
My daughter is in a similar situation. She took a job in a foreign country and is using the difference in exchange rate for money to pay off her loan faster. It is quite an adventure for her and she is planning on being debt free twice as fast. Good luck!
2007-01-17 11:33:21 · answer #5 · answered by Ellie S 4 · 0⤊ 0⤋
Total Money Makeover
2007-01-17 12:29:51 · answer #6 · answered by STEVEN F 7 · 0⤊ 0⤋
this site will help you lower your student loans - it works like a charm!
2007-01-19 07:42:03 · answer #7 · answered by TINY b 1 · 0⤊ 0⤋
Change your name and all your personal info, and poof...all debts are gone, worked for me!!! LOL
2007-01-17 11:34:47 · answer #8 · answered by divineangelbullard 1 · 0⤊ 2⤋