Student loans are likely a huge part of your financial picture. It can be hard to juggle student loans with other big plans you may have for your life like buying a home and starting a family. Tyler Reedman and Jason Gabrieli discuss paying student loans in the pandemic.
Tune into this episode to learn:
- If you should pay off your student loans now while they’re on hold because of COVID-19;
- The difference between mortgages, private student loans, and federal student loans;
- Insights about whether student loans will be forgiven by President Biden or not.
[00:30] Episode overview: student loans
[01:30] Interesting statistics about student loans to show you that you’re not alone.
[02:13] Student loan relief since the pandemic.
[03:16] Will your student loans be forgiven?
[04:25] Should you be paying your student loans right now or use the money differently?
[07:47] How student loans are much more complex than mortgages.
[09:49] Student loans are very complex, do THIS to uncomplicate them. OR Do THIS to uncomplicate paying off your student loans.
- Student debt in the US has reached $1.5 trillion dollars and the average student debt per person is around $37,000. 1 in 4 Americans have student debt. The average student loan payment is around $400.
- While student loans are paused, it can be a good idea to do other things with the money that would have otherwise gone to paying down student loans. For example, you can pay down credit card debt or build an emergency fund.
- Private student loans are much more straightforward than federal student loans. There are many different types of federal student loans and many different payment plans as well.
Connect with Jason Gabrieli: LinkedIn
Connect with Tyler Reedman: LinkedIn
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[05:13] “If you have student loans and you’re not paying them right now, now would be a good time to start investing if you want; or, other things that we usually say you might focus on are building an emergency fund at the rate of six months of expenses or paying down other types of debt like credit cards” - Tyler
[06:04] “At the end of the day, it is all about building your balance sheet. That’s a lesson that we try to teach our clients a lot - which can be done in one of two ways: you’re either increasing your assets by taking the money that you earn from your salary or your wages from work and you save it or invest it and build the asset side or you pay down your liabilities.”
[07:18] “The numbers will say one thing, if we run your interest rates and how much you owe and how long you pay for it versus investing that money we can tell you ‘it makes more sense to do this, over this’ but that’s the quantitative side; the qualitative side…to me, that’s almost more important, when you lay your head down at night what makes you comfortable with the decisions you’ve made.”
[09:26] “If you have federal loans, it can get a whole lot more complicated, so it's really important to understand what your options are and what the best strategy to tackle your student loans may actually be; because paying your student loans may not actually be the best choice if you can get forgiveness.”