Posts tagged Student Loans
How Scary is the National Student Loan Debt?
How Scary is the National Student Loan Debt?

Trends have shown student loan debt rising significantly over the years, significantly overtaking credit card debt in total debt owed by Americans. From one perspective, this feeds into the narrative that student loan debt is the biggest problem we are facing and that consumers are going crazy over education debt. I choose to look at it differently (and more positively).

  • Student debt isn’t the worst debt

  • Credit card debt is down 40%

  • Increased degree attainment

  • Broader planning reduces / increases the problem

Read More
Debt ManagementJoshua Escalante Troesh, CFPStudent Loans, Debt Management
How should I manage the increase in my student loan payments?
How should I manage the increase in my student loan payments?

Placing your student loans in forbearance would be a mistake. The loans will continue to accrue interest, which will mean less of the money you pay at the end of the year will pay down the debt because you have extra interest payments. I would recommend exploring a few other options first (listed below) and then choosing which is suitable for your goals. You may want to hire a fee-only financial planner to run the numbers on the options and provide some clarity on what each option would mean to your retirement goals, buying a home, and other savings.

  • REFINANCE THE LOAN

  • CUT BACK ON RETIREMENT SAVINGS

  • DELAY HOME PURCHASE OR OTHER SAVINGS GOAL

Read More
Debt ManagementJoshua Escalante Troesh, CFPStudent Loans, Debt Management
Should we invest in stocks or pay off student loans with money gifted to us from our wedding?
Should we invest in stocks or pay off student loans with money gifted to us from our wedding?

I encourage the two of you not to consider this as an either/or situation, but instead use the money to provide for multiple goals. Focus on multiple goals to help you achieve both financial stability and a happier life . . . .

Read More
Retirement Planning, Debt ManagementJoshua Escalante Troesh, CFP403(b), Pension, Starting Out, Marriage, Financial Foundation, Building Wealth, Student Loans, Retirement Planning, Emergency Fund
I want to invest some of my savings with a long-term strategy to use to pay back the loans I will be taking out for school; what kind of investment strategies or accounts should I consider?
I want to invest some of my savings with a long-term strategy to use to pay back the loans I will be taking out for school; what kind of investment strategies or accounts should I consider?

Before we discuss the investment opportunities for paying back the loans, start by talking with a financial planning specialist to identify additional financial aid opportunities to offset the schooling costs. Although it's great you . . .

Read More
Investing, Debt ManagementJoshua Escalante Troesh, CFPStarting Out, Financial Foundation, Student Loans, 529 Plan, Debt payoff, Debt Management
How should I get out of debt?
How should I get out of debt?

Other than the credit card debt, your other debt and your housing costs actually look quite good. If you can get the credit card debt paid off, you'll be doing very well financially. Your best bet is to make minimum payments on your student loans and your car loan and put everything you can . . . .

Read More
Debt ManagementJoshua Escalante Troesh, CFPDebt Management, Starting Out, Financial Foundation, Credit Card Debt, Student Loans, Stafford Loan, Debt payoff, Budgeting