On the local news this morning they were talking to a financial expert about the student loan debt crisis.
Here are some takeaway points from what he said. And all of them do not sound like a solution.
First major talking point. Do not count on student loan debt relief or elimination in the future that some presidential candidates are promising. There is zero chance of it passing both the house and the senate. Especially with the special interest groups involved.
For people who already have student loan debt here is the advice given.
- You should never cut back on your 401k contributions to put towards student loans.
- You should always pay 2x the minimum payment. Whether all at once or 2 payments a month.
- Create a budget and follow it to make sure you are putting what ever money that you can towards paying off your student loan deb.
- Have your bank set up a save the change account and apply all that money towards your student loans..
- Payoff your higher interest student loans first.
For those considering going to college
- Have a serious discussion with your family on whether or not you can afford to go to college.
- Go to that local community collage over that $70,000 a year ivy league school you got accepted to if you can't afford it.
- Community colleges are cheaper than State Schools
- If you are unsure what you want to do consider postponing college.
- If you can't afford college, don't go. It's financially responsible. You don't want to set yourself up for failure / not being able to pay back your loans.
Basically what I hear, if you can't afford the ever increasing cost of getting an education, don't get it.
Also, pay 2x your minimum payments? I'm living paycheck to paycheck just trying to pay student loans and covering the cost of living. Sure I could give up records, but that would not be anywhere close to being able to pay 2x a month on my student loan debt. Which by the way is more now 11 years after graduation than it was when I graduated due to using forbearance during the recession and when I was laid off.