Student Loan Issue Details

Michelle Jacobik Student Loan Debt

A college education is certainly key these days if you want to land a job in a desired field and many times higher education is required in order to advance in your career.

However, many people don’t truly think about the stockpiling of loans that they accumulate as they move themselves through the next 4-6 years.

Many think only of flying the nest and ‘spreading their wings’ so to speak, while having the benefits of still being supported while beginning the pursuit of what they dreamed about becoming as a teenager. And some truly have no idea what they want to be, but are told by their parent(s) they MUST get a college education even if they don’t know.

But when ‘life after college’ begins and when notices start arriving in the mail with the demand for payments — Many are just NOT PREPARED to pay.

  • IF YOU ARE STRUGGLING TO PAY BACK MORE THAN THE MINIMUM PAYMENTS
  • IF YOU HAVE DEFERRED YOUR PAYMENTS ONE OR MORE TIMES BECAUSE YOU DON’T HAVE ENOUGH COMING IN
  • OR IF YOU ARE JUST WONDERING HOW YOU WILL EVER PAY THEM OFF & NEED A SERIOUS DOWN AND DIRTY PLAN OF ATTACK
When my husband and I , our daughter had just started college and we really needed a plan!!
We had tried to get rid of our debt many times before, but never had the right tools or a real plan to get us there. Michelle helped us make our journey toward financial freedom a reality! Margee Charron

YOU ARE NOT ALONE!

Today 90% of my clients have Student Loan debt.
Debt that for some has been around for 10-15 years….some even longer than they have had their homes or their family pets!

After a total outlay of 16-20 years of schooling, the last thing anyone really wants to do is commit to paying off their student loans right away.

Instead,

  • They WANT a new car!
  • They WANT a vacation!
  • They WANT a new place to live!
  • They WANT to get married!
  • They WANT to start a family!
  • They WANT to invest the money from their new job and start planning for retirement!

But here is what the delay does to you.
It keeps you STUCK.

The number one way to BUILD WEALTH is to get rid of payments so you can use your income to invest!

Instead, by making lower monthly installments the bank continues to get more interest from you and your dollars are not being use to SAVE/INVEST.

For Example

Julie, age 39 just finished paying off her student loans after 16 long years. She made the decision to go back to school to pursue her Master’s Degree.

She accumulated another $40,000 in Private Loans
.

After finishing up, she received a job offer with an increase of wages of about $27,000 year. FANTASTIC!!!

  • She and her husband made a decision to relocate closer to her new job and purchased a $335,000 home.
  • Their monthly housing expenses went up by $1300 month and her new student loan payment kicked in right after moving into the new home.
  • Rather than focusing those dollars on the loan balances, $15,600 of her new take home pay went right to housing costs.
  • They had closing and moving costs of $8,000.
  • They purchased new furniture and things for the house, all of which were put on a credit card with a 14.99% rate.

This is an all too familiar situation that I see.

0$

Per Month

Minimum monthly payment on her loan was $252 month

0%

APR

And at an APR of 6%!

0Years

Payback

When factored out, it would take Julie 23 years to pay off her loans

Financial Alert
The minimum monthly payment on her loan was $252 month and at an APR of 6%.

When I factored this out, it would take Julie 23 years to pay her loans back.

Her answer to me was that she was banking on the 20 year loan forgiveness program to take care of whatever balance she had by year 20 so her plan would just make the minimum payments and know that they debt would be gone before she was 60.

WE DELAY THE PAY BACK OF THE DEBT TO REWARD OURSELVES

Life continues to happen and we continue to stockpile more payments—- leaving less money to crush the loans we took and we lose opportunity to build wealth and retirement timelines that would allow us to enjoy our later years.

20 yr loan forgiveness program

The 20 yr loan forgiveness program is NOT the way to go!

The way to go is to get SERIOUS…
And once and for all get rid of the STUDENT LOAN DEBT!

Many times I can show people that by tweaking their spending and committing to a strategized plan we can get rid of that debt in 3 years or less. NOT 20!

It’s takes a plan and it takes commitment and it CAN BE DONE!

To find out more about how working with a Financial Coach can help you… SIGN UP TODAY FOR A
FREE 30 MINUTE COMPLIMENTARY – FINANCIAL DISCOVERY CALL

About the Author

Michelle Jacobik

Mom, wife, business owner...