Student Loans
Student Loan Forgiveness
Student loan and student loan forgiveness has become one of the hottest debated topics. Many people feel as though the ones that took out the loans should be solely responsible for paying them back. On the other hand many students that have taken the loans out have felt as though they’ve been making large payments regularly for years and cannot get ahead. The debate rages on.
What if I told you that both sides are correct? It’s true. The act of paying off those loans shouldn’t fall on the taxpayers. Yet, with how these loans are structured, it is extremely difficult to pay them off. Many people are still carrying the debt years and years after graduating.
Now there is a way to accomplish both sides. The government (the tax payers in reality) are not responsible, yet the student can pay it off quickly without draining their bank accounts or solely working for their debts.
A Real Life Scenario
Meet Jennifer
Jennifer was a college graduate that decided she wanted to go back to get her Master's degree. She took out her student loans and finished her degree. When it was all said and done she had borrowed $175,000. Even though an argument can be made about whether or not this was a smart decision, it was her decision to make.
Jennifer Graduates
She completes her Master's degree and starts working in her field. After a few months grace period, her loans begin to come due. Unfortunately she's not aware that she's accruing interest during the six month grace period. That interest alone adds another several thousands dollars to her loan. Her payments begin at a rate of $1490 per month.
Her income works out to be $3000 per month take home. She has about $1400 in average monthly expenses including food, gas, insurance, etc.
According to her loan papers they tell her that paying her payments as agreed she'll payoff in just over 23 years. If she pays an additional $150 per month (which will be very tight as she has $2890 going out and $3000 coming in) she can payoff in a little under 19 years.
Jennifer uses our system
Jennifer finds out about our system and inquires to see if it could help. She wasn't expecting to find that with her current income and expenses and the same minimum payment on her loan, she could actually payoff in just under 15 years. That's almost 4 years faster than paying an extra $150 per month and 8 years faster than the banks plan. That's over $82,000 she'll keep that the bank was planning on getting!!
Jennifer lands her dream job!!
Jennifer lands her dream job a couple months after starting our program. Her degree is paying off. She gets a large raise and is now bringing home an additional $2000 per month. This flexibility allows her to get more creative with our program and paying off her loans. She now is able to payoff in just over 5 years and saves over $165,000 in interest. All that money stays in her pocket. In this case, her choice to go back to get her Master's degree ended up only costing her around $10,000 net cost ($175,000 in loans and $165,000 in interest savings)