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Student Loan Grace Period Over

Before cursing the end of the grace period, here are some tips that will make the transition easier and less stressful.

1. Check if you can further delay payments.
As a rule, the grace period for a student loan ends six months after the student’s attendance at the college has fallen below half the time. For graduates, this period begins six months after receiving a degree.

However, some grace periods do not end after six months. In certain situations, you can postpone payments longer.

As a rule, if you return to school at least half the time until the grace period expires, your loan hours will be reset. You will not need to make payments when you attend classes, and you will receive a new six-month grace period after you finish your studies or fall below the attendance level.

If you are on active duty, then you also have a break. If you are called up for service for more than 30 days, then upon return you will receive another six-month grace period for the student loan.

If none of these situations apply, you may have other options. It is best to apply for a delay or waiver of your loans.

Keep in mind, however, that even if you are allowed to defer payments, you may not want to, or simply do not have to. No option makes student loans disappear, and some even increase the balance you ultimately need.

2. Set up your redemption system
Returning student loans can be confusing, especially if you have applications flying from different places. Believe me: I hate trying to keep track of your bills just like you. Why not make it easier for yourself?

One way to do this is to keep track of all your student loans from one place. Of course, I’m biased, but you can do it for free with your Student Loan Hero account.

It is easy to set up, and it can save you from the frustration of individually processing all your loans. Student loan hero even explains how you can save on your loans, which will help you to repay them faster.

After you have organized your loans, determine the best repayment strategy. If you sign up, the Student Loan Hero dashboard can even help you with options for paying off your credits.

One of the popular strategies is to make automatic payments. Instead of manually paying each bill every month, it is easier to set them up on autopilot. In addition, some federal student loan services will lower your interest rate by 0.25%. Although it is not so much, it is free money. Why not take it?

Trump Student Loan Forgiveness

3. Think carefully about consolidation.
By now, you have probably heard about the consolidation of the federal loan. While this may be a good strategy, you need to know a few things before you unite.

Consolidation takes all your loans and groups them together. Interest rates are averaged on the basis of the balances of each loan, which means that in the end you will pay the same interest, regardless of whether you consolidate them or not. The main advantage of consolidating a loan is paying only one bill instead of many.

So when should you not come together? In particular, if you have 1) loans with different interest rates and 2) you plan to pay more than the minimum payment for each payment cycle, consolidation can cost you. Since you will not be able to first repay loans with the highest interest rates, you will not save on interest.

Keep in mind: after consolidation, this cannot be undone. Choose wisely.

Top Student Loan Forgiveness Programs

4. Look at your interest rates.
There are only three ways to save when paying off student loans:

Lower interest rates
Increase payments
Having forgiven loans
A popular option to lower interest rates is to refinance with a private lender. Current rates are only 1.95% per annum, but you must meet the requirements. Want to know more? Check the questions before refinancing student loans.

Increasing payments without refinancing or consolidation can be an excellent option for faster repayment of loans while saving money. As mentioned above, it is best to first pay student loans with the highest interest rates.

For example, let’s say you have three credits:

Credit 1: a balance of $ 8,000 at 11%

Credit 2: a balance of $ 6,000 at 3.5%

Credit 3: a balance of $ 5,000 at 6.8%

Since each month you are charged the highest interest rate on loan 1, you must repay this loan as soon as possible.

To do this, monthly produce  minimum payments on loans 2 and 3, and do the rest in the direction of the loan 1.

As soon as loan 1 is repaid, pay at least loan 2 and put everything else in the direction of loan 3.

By following this strategy, you will save as much interest as possible on each subsequent payment. Just make sure your service staff knows how to apply additional payments to the main balance, not to future payments.

Westwood College Student Loan Forgiveness

5. Do not skip payments.
If you have a loan, one of the worst options you can do is skip the payment.

For more info : https://studentloansresolved.com/

How to own house with student loans

How big is the student loan debt when it comes to the ability of Americans to buy houses? It is widely believed that cutting student debt does not allow many college graduates to save money on the initial mortgage payment, and missed loan payments ruin their credit scores.

Although these factors account for lower homeowner rates among recent graduates, new numbers show that the impact is minimal. Here is a closer look at how student loans and mortgage rights are related.

Reduce student loan payments

New student loans and mortgage data
A new study Zillow showed that student debt does not significantly affect your likelihood of home ownership, if you have completed at least a bachelor’s degree.

Graduates of colleges with a four-year education and no debt on student loans have a 70 percent chance of owning their own home. This probability is reduced by only 4 percent for bachelors from $ 50,000 in student debt.

 

Although obtaining a mortgage loan or maintaining a down payment can be a daunting task in managing significant debt, studies show that student loans should not be a serious obstacle to home ownership – and not for most graduates.

Married couples

If at least one of the spouses has a four-year education and does not have student loans, the probability that the couple will own the house is about 69.8%. If the same couple divides $ 30,000 in student debt, their chance of home ownership drops slightly to 67.7 percent – a 2.1 percent difference.

Postgraduate students

The same marginal effect of student loans persists even at the graduate level. Persons with medical, legal or doctoral education have the highest probability of owning their home, despite the high prices that often accompany graduate school.

A release without a master’s loan program gives you an 80 percent chance of owning your own home. Add to this amount 50,000 dollars of student loans, and your probability will fall by only 5 percent.

According to the study, achieving a higher level of education protects borrowers from the negative effects of debt on student loans when they are ready to buy.

Associated or not degree

Possession of less than undergraduate is where sensitivity to credit is increased. For those who have a university degree as a junior specialist, the likelihood of owning a house drops sharply from 73 percent without debt to 57 percent if they complete their studies with debts of $ 50,000.

Those who do not have a diploma are the worst; the probability of owning a home starts at 48 percent and decreases if the student has accumulated a debt on a student loan, but has not received a diploma.

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Are you ready to buy a house?
Although student loans have little effect on home ownership for most graduates, other factors need to be considered before buying a home.

One of the most important factors affecting student debt is the debt to income ratio (DTI). Lenders calculate DTI by dividing your total monthly debt by your gross monthly income. If you already have a hefty student loan balance or other debts, such as credit cards or car payments, your income-to-debt ratio may exceed the lender’s limit. Deal with this by paying the highest loan balances to reduce your DTI.

Also consider what you can afford. Your annual income, monthly debt and down payment all affect the determination of a reasonable mortgage payment. Insert numbers into a calculator and play around with numbers to see how much you can afford at home. Your results can help determine whether you are willing to look for creditors or you need to postpone the purchase until you have mastered your finances.

The impact of student loans on your ability to buy housing has long been exaggerated. It’s time for a new story.Doing math and knowing your options will help you determine your priorities – whether it’s paying off your student loans or home hunting.

For additional info : https://studentloansresolved.com/

Before You Apply for PSLF Check out These 4 Surprising Requirements

It is not surprising that forgiveness of loans to public services is one of the most talked about student loan programs. But this is often misunderstood. Trying to find out if you have the right, and when to apply, seems as difficult as getting a diploma.

To answer some questions and clarify misconceptions, here are four amazing facts about the Forgiveness Program for Public Service Loans.

Fact # 1: Your employer, not you, must meet the requirements.
To qualify for the PSLF program, your employer must be a very specific type of organization. The focus is not on the work you do, but on the organization for which you do it.

Qualifying employers whose employees can apply for PSLF are:

Non-profit organizations that are exempt from taxes under Section 501 (c) (3) of the Tax Code
Any local, state, federal or tribal government organization
Some non-profit organizations with relevant government services
Some volunteer organizations, such as the Peace Corps and AmeriCors
There are certain groups that may seem to fall under the category of public service, but do not. For example, trade unions, political parties, commercial groups or non-profit groups that are not subject to Section 501 (c) (3) of the Tax Code cannot be considered employers of the public service.

If you are not sure that your employer is a valid PSLF employer, click on the link to the relevant government services above or contact your company’s personnel department.

Fact number 2: You must be a full-time employee.
Part-time workers will not be eligible for forgiveness of a government service loan, even if they work for a current employer PSLF. You must work at least 30 hours a week, or as much as your employer considers full-time.

In addition, it should be noted that the more than 30 hours rule deserves to be mentioned that none of this time can be spent on any religious functions, such as teaching, worship or proselytism.

Fact number 3: You must have appropriate loans.
Only loans received under the Direct Loan Program can be forgiven for a loan to government employees.

The only way to get federal Perkins loans, federal family education loans, or any other type of federal loan that meets the PSLF requirements is to combine them into a direct consolidation loan.

Unfortunately, none of your previous payments prior to consolidation using a direct consolidation loan will be considered one of the 120 required qualifying payments.

If you do not know if your federal student loans match the PSLF program, log in to the Federal Student Aid website to find out what loans you have.

Fact number 4: You must make 120 suitable loan payments.
First, only payments made after October 1, 2007 will potentially qualify as one of the 120 mandatory payments required for forgiveness of a loan.

Secondly, the redemption plan that you used to make these payments matters.

Fortunately, the payments you make in accordance with the income-based redemption plan are recorded in the PSLF. Your payments are acceptable if you make payments on a direct consolidation loan using the following plans:

Revenue Based Redemption Plan (IBR)
Pay as you earn a plan (PAYE)
Revenue Based Redemption Plan (ICR)
Another factor to consider is: will you have a debt after 120 payments? It takes a lot of time to make 120 loan qualification payments (minimum 10 years), and many borrowers will not have much money left on their federal balance of student loan debt.

However, your payments can be as low as $ 0 per month, especially if you participate in the IBR program. It depends on your income and the repayment plan in which you are registered.

The essence
PSLF typically serves borrowers who have difficulty repaying loans due to low salaries and / or high student loan balances.

If you are eligible to participate in the Civil Service Loan Forgiveness Program, the balance after 120 qualifying payments will be forgiven.

To verify that you meet the requirements, it is recommended that you submit your job application form to your loan specialist each year. This way you can, rather than later, find out if you are in line with your current job.

Not everyone who thinks that they meet the requirements will actually do it, so be sure to spend your research

For additional information : https://studentloansresolved.com/

Should You Pay Off Your Student Loans Before Wedding?

The bells will ring – your fiance suggested, and you said “yes!”

But before you answer “I’m doing”, think: if one (or both) of you pay the student loan debt into a relationship, you will need to decide whether you should tie the knot now or wait until the debt is repaid .

I know, I know. Waiting until you pay off your student loan debt may seem unnecessary. Why put off your future in a pair?

Unfortunately, changing your status from one to married can have long-lasting consequences for your financial situation when it comes to student loan debt. Before walking down the aisle, weigh the pros and cons of getting married now, and do not wait until you are free from student loan debts.

Student loan debt and marriage
Does one partner have more debt than another? This can be a point of contention in your marriage.

If one of you, for example, earned $ 100.00 in debt to a student, and then defended his doctoral thesis, and the other paid for college, then the childless spouse can wait to get married. At the beginning, childless (or low-debt) spouses might we want to ignore it – after all, they are in love. They may even want to help their partner repay their loans.

But large and unequal student debts are a heavy financial responsibility, and everyday reality can become draining.

Both partners will have to live in a small house, skip restaurants and relax, and also work overtime. Will a person who has no debt have such a modest lifestyle? Or will he or she feel that their own financial goals are being held back?

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Who is going to pay?
When it comes to solving this problem, there are several options. Should a spouse with a higher income make larger sums of money? Should a spouse who has acquired a debt pay more? Or do you both have to pay the same?

If you and your partner plunge into general banking and finance, you will need to talk about whether student loans will become a common debt or not. You also need to decide how much each spouse will contribute if you decide to share the responsibility.

For the sake of harmonious marriage, make these decisions before the ceremony.

Related : University of Phoenix Student Loan Forgiveness

Future loans
You may not have graduated with a college degree. If you both want to continue your education in vocational or graduate school, who will get a degree in the first place? Will you simultaneously save your student loans and live entirely with new loans? One of you may have to work to support a family.

If you decide to continue your studies at school, will you save as much as you can before continuing your studies in graduate school? Or should you generally miss graduates in favor of starting your career and family life?

You and your future spouse must consider not only your current student loans, but also any future student loans that you can receive.

Revenue Based Redemption Plans
Perhaps the most serious consequence of student loan debt and marriage is the radical effect that they can have on income-based repayment plans.

Depending on your total income, you can get married without being eligible for income-based repayment plans, such as income-based repayment or REPAY.

For example, your qualifications for an IBR plan are based on income discretion. Once you and your spouse combine income, your new discretionary income may be too high. To avoid this, you will need to file taxes separately.

For REPAYE, your spouse’s income is considered, even if you file two files separately. If the marriage deprives you of the right to participate in this program, you may have to consider a conditional income payment plan (ICR), which contains a higher qualification threshold and capitalizes the interest annually.

Related : The Top Student Loan Forgiveness Programs

Marrying someone with debts: the benefits of waiting
Even the most modest wedding can cost several thousand dollars, that is, money that you could devote to becoming debt free.

The promise of a wedding is a great motivation to pay off your debt. If you postpone the marriage, you can change the repayment schedule to pay off large amounts more quickly. In addition, you can spend more on the ceremony and reception.

Bottom line? Make a decision as a couple
It’s time for you and your fiance to talk seriously.

Do not let the financial elephant in the room cause discontent between you and your fiancé. Talking about finances can be inconvenient, but remember that your union will be clearly less perfect and far less harmonious if the topic of student debt is hidden under the carpet.

Discuss the timing of debt repayment. Talk about whose burden it will bear. Learn to communicate effectively with your partner is about finances before you are legally connected.

For more useful information : https://studentloansresolved.com/

Do you need to help your parents to pay your student loans

According to a recent study by Sally Mae, only 48% of parents are currently putting aside funds to educate their children in college. Whether due to poor planning, rising college expenses, loss of employment, or other extenuating circumstances, many parents take student loans on behalf of their child to pay for their education.

University of Phoenix Student Loan

Although it is generous and sometimes necessary, it also burdens many parents. They are often left to pay the loan “Parent Plus” much later than their graduates, and sometimes retired.

So, should children repay their parents and help with the Parent PLUS loan repayment if their parents took out a loan on their behalf? Should they refinance loans in their own name? Or should they allow their parents to pay loans, since how did they get them?

There are no simple answers to these questions; however, it really depends on the circumstances of each case.

Sometimes children do not know much later that this is how their parents financed their education. At the same time, parents may not be aware of the burden that loans will place on them until many years have passed.

Who is legally responsible for parenting PLUS loans?
Legally, a parent who takes a loan in his own name is responsible for paying off the Parent PLUS loan. This is because the parents decided to take out a loan specifically for their child, agreeing to repay it.

The only way to change it now is to apply for a refinancing loan in the name of this child.

However, the child should do this only if he wants it, and can comfortably pay the student loan on time every month.

Should you take on the repayment of loans?
So what if you can’t or can’t refinance PLUS your parents ’loans to your name? Should you just offer to pay them?

This is a difficult question, and it definitely depends on the situation. But in some cases, the return of these loans may be the right decision. This may be the case if

you have a good relationship with your parents
you have a solid, highly paid job,
you can afford the payments and
You do not want to burden your parents in retirement.
Personally, I would not want to burden my parents with a student loan. If they had taken a loan on my behalf, I would probably have taken a loan or at least planned automatic payments for them from my current account until the loan was repaid. I do not like to feel that someone is stuck in debt or postpones retirement because of me.

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However, I have a pleasant neighbor who is a retired teacher and a mother who pays a student loan on a Parent PLUS loan every month. She lives in the expensive part of the country next to her family, but since she is modest and does occasional work on the side, she can also regularly repay her Parent PLUS loan and still retire.

Facilitating loan repayment Parent PLUS
If you cannot afford to accept payments for your parents, but still want to help, you can recommend how your parents can make Parent PLUS loans more manageable.

On the one hand, they can consolidate and refinance PLUS loans into a private loan. If they qualify for a lower interest rate to help save money during the life of the loan. It will also reduce the number of loans that they need to track, simplifying payment arrangements.

Your parents can also check whether they have the right to a payment plan with a conditional income, which will require them to pay no more than 20% of their discretionary income to pay the student loan each month. After 25 years of payments, loans are forgiven.

Ultimately, leaving your parents burdened with student loan loans for your education is not an ideal situation. This can cause family disagreement about who should be responsible for paying off a student loan, and can burden your parents and possibly even delay their retirement.

It is best to talk with your parents, have an open dialogue and try to find a way through which you can work together to cope with debt, regardless of whether you contribute to repayments or fully accept the loan.

For more info : https://studentloansresolved.com/

4 Steps to Help You Decide with Student Loans

1. Make private credit a priority
When you have several loans, including federal and private student loans, all at different interest rates, it may feel overwhelming to start paying off your debt. Where do you start?

As a borrower, you should focus on repaying private student loans in the first place, because these loans provide much less flexibility in managing them. This truth becomes especially clear when you look at repayment options, which often dictate a fixed minimum payment without any flexibility.

In addition, private loans do not bring the same benefits as federal loans, including income payments and write-off loans. Accordingly, it is reasonable to make private loans your priority and pay them as quickly as possible.

2. Focus on federal loans
Just because you give priority to your private loans, this does not mean that you can ignore the repayment of your federal loans. It just means you need a strategy.

For example, you might consider paying the minimum budget for your federal loans until your private loans are fully repaid. Then you have to put money into your federal loans, which you would otherwise pay for your private loans.

If you only have federal loans, then concentrate all your efforts on reducing the loan balance until you are completely red. When returning your federal loans, be sure to choose the right plan to pay off your financial life and goals.

A standard 10-year repayment plan usually allows you to quickly pay off student loans. But if you are struggling to pay off your debt, then you might consider choosing an income payment.

It is imperative to take advantage of the flexibility and opportunities that come with federal loans if you really need them. At the same time, do not choose a plan with a longer time frame or a lower repayment scheme, if you know that you can afford to pay more. Remember that the goal is to overcome debt – the sooner the better.

3. Consider refinancing
If you have both federal and private student loans, then you can deal with high interest rates and a few lenders that may seem like serious obstacles. While managing multiple payments can be difficult, paying so much in percentage can be frustrating.

However, there are alternatives. With refinancing student loans, you can be approved to raise interest rates and be able to consolidate your loans into one monthly payment.

If you have both federal and private student loans or only private student loans, refinancing can be a reasonable choice. As a rule, lenders prefer candidates with a good credit rating, sustainable employment and sufficient income to repay their loans.

Since each lender has their own eligibility requirements, compare them to see if your needs are right for you. If you only have federal loans, then it may be better for you to keep your current plan, since refinancing does not provide benefits, such as paying out income and writing off a loan.

However, if you are burdened with PLUS loans and a 7% interest rate, you can take advantage of refinancing and even save thousands of dollars. Carefully review your options and remember that refinancing should always be considered.

4. Develop a plan
Now that you know which loans to pay off first, start with private and then go to the federal and you always need a plan to always make the minimum payments for everyone.

How do you achieve debt free? Fortunately, there are many ways from which you can choose or even mix and match in order to achieve your goal of becoming debt free.

The method of avalanche debt includes the repayment of a loan with the highest interest in the first place when paying the minimum amount to others. I signed up for this method, and I just paid off my last 7.9% loan! Now I turn to the rest, only 6.8%. Using the avalanche debt method, you can save a lot of money as a percentage.
The method of debt snowfall includes the repayment of the loan with the lowest balance and the payment of the minimum amount for the remainder. If you have loans in the amount of $ 2,000, $ 8,000 and $ 13,000, then first borrow a loan of $ 2,000. This method is praised by personal financial guru Dave Ramsey for the psychological victories you receive, in the sense that paying off the smallest balance first of all helps to build momentum, which can be very motivating.

For more info : https://studentloansresolved.com/

Prioritize Goals Before Paying off Student Loans

1. Create an emergency fund
It is nice to be able to make large payments on student loans, but it doesn’t mean anything if you have a car accident and have to go to the medical hospitel and you cant  pay for it. Unfortunately, the unexpected happens.

Last year I was pregnant with twins who were born early and spent two weeks in critical condition. Their hospital bills were astronomical. Fortunately, my husband and I had a solid emergency fund that we paid for all their medical care.

If you do not have an emergency fund, you may be forced to skip payments on the student’s loan as a whole, which could damage your credit reports and your future.

Instead, create an emergency fund before you start making additional payments on student loans. Thus, if something bad happens, you have the money to handle it, and you can continue to pay your loans without interruption.

2. Create a budget
When you make a payment on your student loans, you cannot repay it. Even if you are excited to have made your loans in the amount of 1000 dollars, it will not be worth it if you need money in just a few days. This is where the budget begins.

Paying your student loan requires discipline not only for making payments on time, but also for incorporating your payments into your overall financial plan for your daily life.

A monthly budget in which you list all your bills and expenses and compare them with your monthly income will allow you to see how much you can pay on loans. It can also show you areas where you can cut down so you can add even more to the monthly student loan relief.

However, none of this is possible without setting up your budget before aggressively paying off student loan arrears. Get to know your financial trends and personality, and you will be much better off traveling through debt.

3. Save for kids learning
This is likely to be a controversial topic, but I am so tired of the student loan debt that I am more motivated than ever to make sure that my two children should never have a student loan debt.

Despite the fact that my husband and I still carried large student loan loans, we are still actively investing money in the names of our children so that they never have to worry about paying for college.

The choice is definitely up to you, but even if you don’t want to give priority to saving for your children’s college by paying off your student loans, at least pay some attention to it for the future.

Do you have any financial goals that you focus on before paying off student loan debts?

For more info : https://studentloansresolved.com/

2 Experts Weigh In Student Loan payment

1. Assess the rest of your situation.
The situation is different for everyone, so it is very important to assess your unique situation in order to determine how much you must pay to repay your student loan relief. Consider the following:

Does it depend on you financially on others (for example, spouse, children)?
How much are your main accounts? That is, what is your naked budget?
How much do you have in savings?
Do you have health insurance, rent or any other types of insurance?
Do you live in district  with a high cost lifestyle?
Is your employment situation stable, that is, stable, as any work can be?
Do you have another debt, such as car loans or outstanding medical bills?
All of the above affects how much you owe and how much you should save.

Dave Ramsey, who helped many people get out of debt, recommends using the Baby Steps method to save, repay debt and create wealth. He recommends starting at $ 1,000 in an emergency fund and focusing solely on paying off debt using the snowball method.

Although the advice is good, it does not take into account the unique situation of each person. As a freelancer, I do not feel comfortable with only $ 1,000 in savings. However, if you have a reliable full-time job that pays well, then maybe Ramsey’s approach makes sense.

In any case, it is important to have some extraordinary savings, since emergencies are inevitable: car accidents, the death of loved ones and sudden illness among many others. But there are other things you might want to save, such as retirement or a trip.

The key to saving is a balanced satisfaction of your financial needs so that you are prepared for emergencies, in order not to set yourself up for debt and not take steps to achieve your financial goals.

If you are particularly focused on repaying your debt as soon as possible, then make sure that you are ready for life to be thrown at you, and also that you are not leaving money on the table.

2. Do a gut check
Because personal finance is inherently personal, it is important that you do a bowel check: how do your student loans make you feel?

Why is bowel checking important? Because you will not achieve any progress in achieving any of your financial goals without motivation. You need to know what inspires you at the end of the day.

For example, do your student loans make you physically sick? Do you have to sleep at night because of them? Are they a constant source of stress for you? In each case, I was there. I learned that one sure way to handle is to use these emotions to fuel debt repayment.

However, if you are locked in a good plan with a good interest rate and do not mind your repayment period, then why not focus on building wealth through savings and investments?

“I’m a big supporter of student loan repayments while building up your assets,” says Shannon L. Maclay, founder of Next-Gen financial corporation. “This has the same effect on your net worth as compared to just paying off debt; nevertheless, you like not only the financial gain from cash to protect you from further debt, but also the psychological gain from growing your bank account. ”

The key is to try to find a balance between paying off debt, saving for short-term and long-term goals and investing. This is a fragile balance that is always personal. All make another plan.

So, if you are wondering how much you should pay for a student loan, use these tips to develop a plan that works for you. Just make sure you have money accumulated for emergencies. To play it safely, you can save 10% of your income, invest another 10% in 401,000 with a match and put the rest to pay off your debt.

No matter what you decide to do, make sure your plan meets your goals and supports your values. Make sure you feel comfortable with your plan and understand that it can change over time, as your life and goals also change.

Related : Student Loan Payment Calculator

For more info : https://studentloansresolved.com/

Take a vacation of your dreams, paying off a debt

Icelandic beautiful geothermal Blue Lagoon. Sunsets on the beaches of Brazil. Architecture and music of Portugal. Art and food of Spain. What do they have in common? These are some of my favorite memories of traveling around the world.

Despite the fact that I am willing to pay the debt, a huge passion of my trip. Many personal finance experts recommend that you pay your debts before you travel. While this is great advice for people with huge debt burdens, it can be unrealistic and frustrating. It may take years (or decades) to pay off a debt!

In my life, I paid my debts and traveled on two priorities, and I never regretted it. Here are some tips for budget travel and how you can take your dream vacation while paying off debt.

Top Student Loan Forgiveness Programs

1. Cash payment
It goes without saying. Obviously, you don’t want to borrow and go into debt because of your love of travel. Seeing new sights is great, but it kind of hits the target if you have to go back to a larger debt load.

Instead of relying on credit cards or other loans to finance your adventures, save some cool cash. Set up an automatic transfer from your current account to a separate savings account to make it easier.

In addition, make sure that you develop a realistic timeline and budget for your trip so that you can save enough money. For my last trip to Spain, I saved six months and automated my withdrawals on a savings account every month, which I called Spain, respectively.

2. Consider hacking
Have you heard, for example, hacking travel? This is a way to use credit card registration bonuses to get free or low cost travel options. I used to think that this is a fraud and that in fact it does not work.

That was until I realized that I was really ready to pay student loan debts, but I also wanted to travel on the cheap. All the time I heard about how budget travelers travel abroad and do not pay anything for their flights. So I decided to try.

I signed up for an American Airlines credit card, and within a few months I received a reward bonus, and I had 40,000 miles. Surprisingly, 40,000 miles is enough to fly back and forth to Europe in the offseason (usually from October 15 to May 15). In total, I paid $ 63 for my round-trip flight to Spain to cover taxes and airport taxes. I was no longer a skeptic.

Flying is usually one of the most expensive factors on a trip, and my flight cost $ 1,400. Without spending a lot of money on the flight, I drastically reduced the amount I needed to save as a whole, which in turn helped me continue to pay debts.

Now, there is one big caveat: if you are also fighting with credit card debt, then hacking along the way is absolutely not a good idea. Travel hacking should be considered only if you are a responsible credit user without credit card debt. It is imperative that you pay your balance in full each time.

If advertising is not for you, you can still save and search for deals on sites such as Travelzoo, Hipmunk, Kayak and others. To get the best deal, think about flying during the week. In addition, a comparative store between different airports, dates and times.

3. Find cheap rooms
Next to a flight, accommodation is usually the second most expensive one. Instead of using expensive hotels, consider renting through AirBnB to reduce costs.

If you want to spend even less, stay in a dorm or visit CouchSurfing. When I went to Spain and Portugal, I stayed in the hostels and paid about $ 20 per night. In general, it was much cheaper to stay in a hostel than at a hotel.

Another option for a truly adventurous and hardworking is voluntary time in exchange for living. I met several people in my dorm who worked 20 hours a week and received free rooms and meals. Just contact the hostels where you are going and see what opportunities for volunteers are available.

4. Stick to paying off debt
Although the journey is amazing, you don’t want it to derail your progress with your commitment to pay

a, I could get out of debt a few months ago without going on these trips, but take the time to relax and see that the world really inspired my goal of paying the debt.

Before my last trip, I felt some debt fatigue. I was tired of payments and felt that I was working only to make payments, and not a beautiful place.

My two-week trip, which cost less than $ 1,000, completely changed my mind and inspired me to leave the debut

your student loans. Make sure you can keep to the minimum payments, as well as your timeline. If you are planning a trip, you will significantly strengthen your income, then change your mind about the journey or find out how to do it on the cheap.

All my trips, all inclusive, cost 1000 dollars or less. While I am in the “slaughter of debt” mode, $ 1000 is less than one month for me.

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For more information : https://studentloansresolved.com/

How to create an emergency fund when you return student loans

You know that you must have an emergency fund, but this is easier said than done.

How much money should you save? What exactly is this fund used for? And how do you balance the allocation of money for these student loans (sometimes large) that you need to pay now?

Emergency funds should not be misleading, and they do not need to distract you from other financial priorities. Here is what you need to know to start your own.

What is an emergency fund and why is it needed?
First, let’s start with the fact that there is no emergency fund.

An emergency fund is not what you apply to when you need to pay random bills, such as holidays, vacations, annual registration of a car or a trip to the dentist every six months. These things may not be regular expenses, but they are still expenses that you can expect, and you should consider them in your monthly budget.

If you know that your annual trip to Las Vegas will cost $ X, divide this number by 12 to get the amount you need to allocate monthly for this purpose. Put it on an “irregular spending” savings account.

Your emergency fund is designed for real emergencies — unforeseen scenarios that you could not expect, such as a sudden job loss or a huge health crisis.

If you fall ill, quit, or encounter unexpected car or home repairs, this security system will become your salvation grace.

Murphy’s Law is not just clever cliché; life has to throw unexpected costs from time to time. If the engine of your car dies two weeks after you are fired, you will thank your lucky stars that you have accumulated for this disaster.

Related : Reduce student loan payment

In short, an emergency fund can not only save your budget, it can give you peace of mind (which is something valuable).

How much should I save?
Financial gurus recommend different amounts.

Character television Suze Orman recommends saving enough money to cover the cost of 8 months.

Best-selling authors Dave Ramsey and Jean Chatsky recommend 3-6 months.

Many financial experts shoot somewhere in the middle, saying that you should make mistakes as close as possible to the 6-month side of this spectrum.

Whichever number you choose, it is worth noting that experts do not agree with whether your calculations should cover all your expenses during these months or only your “necessary” expenses.

Do you speak 3-6 months of lunch in chic restaurants and go to the movies, or 3-6 months strictly groceries, utilities and other items not related to luxury? Is cable tv turned on? What about gym membership?

The answers to these questions you decide. If the worst thing happens, and you lose your job, you can resolutely abandon unsecured things so that your money stretches out as long as possible.

Or you can save a little more to give yourself more respite and allow yourself to be pampered (moderately) during a crisis. Decide on your personal posts and plan accordingly.

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Emergency vs Student Loan Fund: How do you prioritize?
There is one question to which we have not yet answered: how do you juggle the construction of an emergency fund with the payment of student loans?

First of all, you must make a minimum payment on your loans. Never skip payments (but this should be understandable). But how should you balance the creation of an emergency fund with additional payments to speed up the repayment of the loan?

Returning to the guru, Dave Ramsey recommends saving $ 1,000 in emergency funds first, then focusing on paying off your debt, and then directing your emergency fund more to cover 3-6 months of expenses. This is a back and forth strategy that balances both priorities against each other.

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However, please note that Dave largely focuses on paying off debt compared to other financial goals. With this in mind, you will have to decide for yourself if this makes sense to you.

Others argue that you should save a larger reserve fund right from the start — perhaps costs by 2 months — to start additional payments on your loans. Once your loans are repaid, create your emergency fund for a six-month mark.

The interest rate on your loans will play the role of your personal decision. The payment of subsidized Stafford loans differs from the repayment of private loans from 10% per annum. If you pay a larger percentage each month, you can start with a smaller emergency fund that would you be able to concentrate on getting rid of high interest debt.

Whatever you decide, one thing is certain: an emergency fund should definitely be part of your short-term and long-term financial plan.

For more information : https://studentloansresolved.com/

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