College and Cash Flow
When you head off to college, a lot of firsts will be in the cards. It is probably the first time staying away from home for long periods of time, it’s a first time for a roommate, and the first time you have massive debt. 68% of bachelor’s degree graduates leaving college do so with an average of over $30,000 in debt. Dealing with student debt can be very stressful and can have an effect on your life for years to come. It is best to get ahead of the curve and work out sooner rather than later how you are going to deal with it, or it may be to your detriment.
According to research, the overall picture is worse than one thinks at first. A standard repayment plan for federal student loans puts borrowers on a 10-year plan so that they can pay off their debt. Unfortunately, the average bachelor's degree holder takes 21 years to pay off his or her loans. A massive 11 more years! One bit of good news is that under federal income-based repayment options, after 20 years any of the remaining debt may be forgiven.
[It is important to think ahead when you leave college with your degree in hand, and you will have to get a job and enter the workforce if you have not already been working. Now a part of your paycheck will be paying off your loan every month, and this can be stressful. Research shows that among the 40% of Millennials and 31% of Gen X employees with student loans, there are rising numbers who say that their loans are having a significant impact on their ability to meet other financial goals.
Making sure you are aware of how your loan works and how much you have to pay back is important, so get as much information as possible, and plan to pay it off sooner rather than later if you possibly can, so you can free up more money for yourself
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