Loans Debts And Students
David Gibson
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Posts by David Gibson
How Student Loans Slice and Dice Taxes
Mar 2nd
They say taxes and death are the two things you can always count on. For college graduates, it is more like student loans and taxes. Statistics show that the vast majority of students graduate with heavy loan debt, which must be repaid.
Receiving your first student loan repayment invoices can be a shocker. When did I borrow so much money? Who in their right mind gave it to me!? The panic will subside once you put together a plan, but it can certain be a rude introduction to the life of an adult.
Receiving your first student loan repayment invoice in the mail can be a real shocker. Ah, but you have a second whammy coming down the line. Yes, I am talking about the joys of paying taxes now that you have some real income. It can be slightly depressing. Regardless, Uncle Sam is going to help you out.
There are all kinds of strategies for paying back student loans. Unless you win the lotto, none of them will work in one year. This can be depressing at first, but an adult beverage may help as well the news that you get a tax break because of them.
Student loan payments are comprised of principal and interest. The interest you repay is a tax deduction you can use year after year while repaying your loans. That deduction is capped at twenty five hundred dollars, but that is still a lot.
This health deduction can lead many graduates to implement an odd financial plan. They decide to make the minimum payments on their loans, so they can claim the deduction for years and years. This works okay so long as you show some discipline with the money saved.
Since you will not be paying any extra amount on those student loans per month, it is wise to invest that money elsewhere. Otherwise, you may as well put it towards those loans. First, set aside an emergency fund. This fund should contain enough money for you to live comfortable for six months.
Put that money away for a rainy day. Now cut up your credit cards. Save one for emergencies, but store it away. Now put together all your credit card statements. Pick the smallest balance and start paying them off one by one.
Once you have taken care of these two things, start pooling and investing your money. Your goal is to build up a big enough investment that you can pay off the loans in one fell swoop. Until then, claim that deduction!
About the Author:
Visit USStudentLoanCompanies.com to find student loan companies that finance both undergraduate and graduate school educations.
Money to Go Back To School With
Nov 13th
Deciding to commit yourself to a graduate program can be a great way to jump right into a fantastic career. Still, if you are like most people you will need a few extra dollars to get you through the next few years.
The good thing about graduate school is financing is much easier to get than with undergraduate school. The dollars involved are much bigger, but your potential to make serious money is as well. Before taking every possible loan, remember you will have to pay them back.
You have been through the undergraduate process, you know how much those monthly loan bills are, yet you are applying for money once again. Even though you know better than to borrow, grad school is just not possible without some extra cash.
The only difference is that this time around you are older, wiser, and have a better grip on reality, right? As soon as you are approved for that hefty loan, it is really tempting not to take the whole thing. After all, you do need a new laptop, books, and some pocket change for those late night study sessions.
In our modern society, it is hard to convince people that debt is really bad. Everyone is in debt, so who cares? With student loans, this attitude can be a disaster. Think back to the first invoice you received for the undergraduate loans and you reaction.
Shopping around can save you thousands in interest payments on your loans. Two loans to look at are definitely the Plus Loan and Stafford loan packages. Both tend to be in the running for the cheapest student loans on the market.
Remember, a dollar you do not borrow is about two or three you do not have to pay back. Interest on loans is a killer. If you can take a part time job, do it. It may seem tough at first, but you will thank your lucky stars when you graduate.
You can actually turn the situation into a double win. Try to get a part time job in your profession of choice. Not only will it cut down on your loans, but it can provide you with networking opportunities for the transition once you graduate.
Enjoy your time at graduate school, get the degree that you set out to achieve, and try to land that great job right away. As soon as those caps hit the ground at graduation, those student loan collectors will be there. Hopefully, you will be able to handle them this time around.
About the Author:
Chase student loans are a form of private student loans that can fill gaps in your education financing according to David Gibson of USStudentLoanCompanies.com.