Hello, today we are going to discuss a very important topic that is relevant to over 60% of college students and it is student loans. Yes student loans may seem very evil because they kind of are, but if you think of it in a way that is positive and you figure out how to pay them off efficiently they can be not so bad. The reason why many of us have student loans is because we are investing in ourselves. We are building our human capital so that we can be appealing to employers and get jobs that we want; although, the current economy does not help very much in that respect. But it is all the same, we are getting smarter and student loans are a way to pay for our increase in intelligence.
This short video will give you some advice about how to pay off student loans:
The video talks about how paying the debt off is based off the specific person’s situation because the amount of capital each person has is different and the things people want to do with their lives are different as well. I personally am going to be eating cup-o-noodles every night until all of my debt is paid off because I want to pay as little as I possibly can, but most people want to go out to eat and have nice things, but the main point is to pay off the debt in whatever amount you can. Don’t just let the interest build up and end up having to pay twice as much as you borrowed, so try and pay off more than just the interest payments because that does only is trimming the leaves off a tree and not cutting the branches off.
Here is an accurate description of how we feel about the interest in student loans:
The interest can be very scary, but the thing that we need to do is to be aware of what your interest rate is and how much you are going to have to pay if you stick to a specific payment method like 500 dollars a month. The most important thing is to know what is going on and not throw it into the backseat of your car and forget about it until your entire car smells weird and then you need to pay more to fix it.
So, all you need to do is go through the numbers, or gets some help with them from a professional or even a parent. Debt is okay if it is dealt with properly and it can even be a good sign in the financial market because it shows that the company is investing and working on bettering itself. But it can become very problematic if it is not handled diligently because it will build up and then there is big trouble.
Now that we covered all of that stuff, let’s look at some questions and see if we can answer them and come up with some solutions.
- Do you have any idea what payments you are going to make or are making to pay off student loans, and if so how did you figure out that number for yourself?
- Do you have any more advice about student loans? It never hurts to hear other people’s ideas.
Thank you for reading and please comment and come back next week for more info about economics and college!