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Student debt + low wages = đź’”
Plus: $4.28 billion student loan relief + NerdWallet
🥳 Happy New Year, RoadMappers! 🥳
🎙️ Did You Know? The tradition of making New Year’s resolutions dates back to ancient Babylon, where people promised their gods to repay debts and return borrowed items.
Today, many people use it as a time to set goals for both personal and professional growth, health, and productivity at the start of the year, although sadly, about 80% of them fail by February. It doesn’t have to be this way, though!
What resolutions are you making and what’s your plan for keeping them?
Crushing Student Debt
From Burden to Freedom
The cost of education.
Student debt has gone from being a way for young people to achieve their educational goals to becoming a burden when it comes to financial health. With college costs increasing drastically in recent decades, it's no surprise that 51% of bachelor's degree individuals graduated with student loans (2021-2022 academic year).
When you think about how much recent grads are paid and what kinds of jobs they can get, the debt is a big financial burden. It affects life choices like buying a home, pursuing a dream career, or even starting a family. The sooner you pay off your debt, the more financial freedom you'll have, so let's look at the options.
The following are our honest suggestions, no affiliate links or kickbacks apply.
First…
Navigating student loans starts with knowing what’s available. Federal repayment plans like Income-Driven Repayment (IDR) adjust monthly payments based on your income. However, they can lead to a negative loan payoff breakdown. At the same time, Public Service Loan Forgiveness (PSLF) offers loan forgiveness for those in qualifying public service jobs after 120 payments, although eligibility criteria can be strict.
If you’re facing financial hardship, explore deferment or temporary payment freeze to temporarily pause payments. For private loans, refinancing could lower your interest rate, but be cautious, refinancing federal loans means losing federal protections.
Second…
➡️ Evaluate Your Debt: You (probably) know how much you owe, the interest rates, and your loan types, but you need to RoadMap all your payment options and calculate roughly when you'll pay off the debt with your current payment plan.
➡️ Set Priorities: Focus on high-interest loans or the ones without forgiveness options.
➡️ Budget Wisely: Create a budget to free up funds for repayment. Tools like NerdWallet can help you plan effectively.
đź’ˇPro Tip: Join communities like the Student Debt Crisis Center for guidance and support.
TL;DR
news + current events
Relief for PSLF borrowers.
Molly Nagle
The Biden administration announced $4.28 billion in student loan forgiveness for nearly 55,000 public service workers, bringing total relief to $180 billion for 5 million borrowers. This relief primarily benefits participants in the Public Service Loan Forgiveness (PSLF) program, which cancels debt for public service professionals like teachers, nurses, and law enforcement officers after 10 years of payments.
President Biden highlighted improvements to the PSLF program, addressing past implementation issues that blocked eligible borrowers from receiving relief. Since his administration began, over 1 million PSLF participants have had $78 billion in debt forgiven. Biden emphasized that these actions are part of his commitment to making higher education a pathway to opportunity rather than a financial barrier, enabling Americans to pursue life goals and achieve financial stability.
Curated Clicks
Ask a Nerd.
When it comes to tackling student debt, NerdWallet is a game-changer. This app simplifies personal finance by offering tools and insights specifically designed to help you manage loans and make smarter financial decisions.
With NerdWallet, you can compare student loan refinancing options to find lower interest rates and calculate repayment plans. The app provides personalized advice based on your financial situation, ensuring you have the tools to create a repayment strategy that works for you.
RoadMap is a private network for recent college grads embarking on their job search and early career journey.