Description: The following article is mainly going to tell the people who are paying their loans three steps which can help them avoid making their loans suffer the problems, we can get some useful information about college ave student loan.
Today we’re going to tell you three steps to not letting your loans, this is mainly for people who are paying their loans, but also for people who are about to take them out.
The first step is to take out what you need, when you’re 18 years old, you don’t understand what a loan is, because no one teaches you, when I took out loans, I was tempted to use them to pay for my rent to pay for my housing.
I would get my loan reimbursement and I would cash it and use it, don’t do that, loans are like the devil, don’t take out anything more than you absolutely need, if a lot of people say I want to focus on school, I’m not going to get a job, don’t do that, try and pay it, pay as much of your education as you can on your own if you absolutely need to.
As soon as you take out those loans, you’re already effed, we’re going to move on to next step, it is when you have graduated from school, you want to change the world, you’ve got monthly repayments, so the first thing you want to do is that they’re going to give you some reasonable number, if you’ve only gone to undergraduate school and you went to a state school, you might have a payment, that’s like a hundred or two hundred dollars.
If you’ve gone to grad school that starts getting up into three hundred four hundred dollars, but you got your first job, I can make these payments and I can still live lifestyle, I want to, but what I want to tell you today is that you should F their monthly payment, do not pay that minimum payment pay as much as you can throw it into the trash and then figure out your own budget, figure out what you have to do to pay as much money as possible.
Ryan is going to illustrate why this is so important, we’ve got a standard set up here, you took out twenty thousand dollars in student loans and that’s at a seven point two five percent interest rate and it’s at the standard, twenty five years or three hundred months and we’re going to start you off by paying it back, starting January 1st 2014.
The bank recommends that you make a minimum monthly payment of 144 56 based on all these numbers, so we’re going to show you what happens if you listen to these bankers, so the first day, you’ve paid off 144 56, you’ve dropped your total down to 19 855 and you’ve paid off the interest or total principle 144 56.
We’re going to zoom down here, two years to January 2016 to see what happens, you’ve paid 144 56 this month, it’s January 2016, you’ve paid one 1852 in interest and 26 has gone to the principal this month.
If you come over here, you see on your loan, 19 thousand two hundred twenty one dollars now, that’s after paying one hundred forty-four dollars for what twenty four months now and you’ve only dropped it down by seven hundred and seventy eight dollars, because you’ve also paid two thousand eight hundred thirty-five dollars to interest.
That’s the money that the bank gets for the courtesy of giving you that money, I saw the next step, we’ve talked about effing their monthly payment, so you want to take that and throw it in the trash and what you want to be doing is to be a disciplined ninja, so my loans want me to pay three hundred twenty six dollars a month on one of my loans for grad school. I pay a thousand dollars a month on that loan, I cannot let my loans F me over, so you want to be paying as much as possible.