I have two main goals with this blog. The first is to inspire those who have student loans or other forms of debt to live below their means so that they can pay off their debt as quickly as possible.
The second goal is to reach those who are currently in college or will be heading to college soon. Many young people believe that attending college immediately after high school is the only path to success. If their parents can’t afford to help them pay for college, they often think student loans are their only option.
If you don’t know who Dave Ramsey is, you might not be familiar with the concept of the “debt snowball.” So, what the heck does that even mean?
A “debt snowball” means paying off your smallest debts first, while making the minimum payments on your larger debts. Once the smallest debt is paid off, you then move on to the next smallest debt, and proceed with this process until all of your debts are paid off.
I’m here to tell you some things you probably don’t want to hear. I am not your parent. I’m not going to tell you that “you can be anything you want to be”, that you should follow your dreams, or that working hard in school is the key to a bright future.
Today, we have a guest post from Molly Day of Student Loan Diary, on how millennials can pay off their student loans more quickly. As a millennial, I know how important this topic is for Gen Y! Student loan debt can be overwhelming, depressing, and anxiety-provoking. Because student loan debt is so crushing, paying it off as quickly as possible is a smart choice. If you’re feeling overwhelmed, it can be difficult to know where to begin. Here are Molly’s tips for how to pay your loans off as fast as you can.
When you think about your student loans do you feel anxious, depressed, or trapped? Does it infuriate you when you review your bill and realize that only about 50% of your payments are going toward the principal balance, while the remainder is going to interest?
Unfortunately, there is no magic secret to getting rid of student loan debt. Lowering your payments by switching to an income-based repayment plan is not a good solution for most people – your payments will be lower, but you will be paying a fortune in interest over time. Can you imagine being 50 years old when you make your final student loan payment?
This blog is about destroying debt by living below your means, so it probably seems strange that I would say that I’m grateful for my student loan debt. Obviously, there is a HUGE part of me that is not happy about my student loans.
Four years ago, when I received my acceptance letter to a graduate program at a prestigious business school, I was elated. The school is known for being highly competitive, and I wasn’t sure whether or not I would get in.
At the time, I believed grad school was my ticket to a better life. I had received my bachelor’s degree in psychology, and I had heard many horror stories about psych grads who were working multiple retail and restaurant jobs just to get by. I was terrified of trying to find a decent job with a BA in psych and five figure student loan debt hanging over my head.
Like many millennials, I didn’t land a job immediately after finishing school. I found myself unemployed and buried in student loan debt. I was frustrated by how difficult it was to find a job (despite attending a graduate school that boasted a high job placement rate). I quickly realized that most of what I had been told – by my parents, by teachers, by advisors – was inaccurate or incomplete. Advisors are essentially salespeople who try to sell (often useless) degrees. My parents, though well-intentioned, had no idea how much my student loans would add up or how difficult it would be to find a job.