Student Loans Debt: What You Need To Know
Welcome to the Wealth under Pressure Podcast, in which John Smallwood. In this episode, John talks with Leslie Tayne, a debt solutions lawyer who has recently written Life and Debt: A Fresh Approach to Achieving Financial Wellness. Their discussion ranges from student loans debt to mortgages, credit, budgets, and managing out-of-control debt.
John is the author of 5 Ways Your Wealth is Under Attack and It’s Your Wealth – Keep It.” He has lectured extensively on financial planning and is a recipient of the Five StarSM Wealth Manager Award.
John’s strength lies in his ability and commitment to continually improve the level and quality of the financial planning process. His dedication to his clients’ growth involves an evolving strategy that strives to meet the demands, desires, and needs of his clients in a continually changing economic environment.
Don’t miss these key points on student loans debt:
- Debt is not inherently bad—it is a tool that can help you do things you normally wouldn’t be able to do, such as buy a house, buy a car, or go to college.
- Before you take out student loans…
- Understand the full implications of that debt and your future repayments.
- Look at low-cost options like community college, state school in your home state, or studying out of the country.
- Only 1% of those who apply to the US government’s Public Service Loan Forgiveness Program or Teacher Loan Forgiveness Program actually receive loan forgiveness.
- If you can’t repay your federal student loans right away, you have options to pay them later (deferment or forbearance) or to repay based on what you can afford (income-sensitive repayment).
- If you can’t repay your private student loans right away, they immediately go into default and you could be sued.
- Depending on debt (such as credit cards or home equity loans) for living expenses is not tenable in the long-term.
- Learning how to budget can help you avoid unnecessary debt:
- Plan for the once-yearly expenses.
- Plan for the unexpected.
- Also, a debt solution that worked for someone else may not work for you.
- Lastly, don’t be afraid to ask for help!
For more, listen above. Then schedule a time to come talk to us and figure out the best course of action for your debt.
If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here.
You can also connect with us on social media, or call us at (800) 797-1000.
Looking forward to speaking with you.
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