Episode 39:

Student Loans

Leslie and Ryan break down the jigsaw puzzle that is student loans. We talk about the different types of student loans, your mindset when approaching loans and different way to save money on the front end. This is a must listen for anyone thinking about college or applying for student loans.

Audio Only Version:

EP-39 Student LoansLife Admin
00:00 / 49:49

Money 201: Student Loans

 

Set the table: So many options that sound so simple. But you hear about the danger later on. How and why is this? To understand it helps to know the basics about student loans. 

 

The types of loans

  • A little history. After WWII, through the Second Wave of feminism, to the present (and how it all may be about to change)

  • Subsidized or Unsubsidized - the interest is covered for a time, never the principal

  • Private - details depend on the institution

  • Scholarships (not really loans)

 

Application process

  • Universal form for federal loans, Free Application for Federal Student Aid

  • Looks at your income and assets as well as family

  • Need to fill it out every year

  • Applications to private institutions are filled out with each institution

 

How payoff works after you finish college

  • Typically starts 6 months after graduation

  • In general, pay off higher interest loans first. 

  • Enroll in auto pay so it leaves your account like federal withholding taxes

  • Think outside the box. Will your employer pay for a commitment to stay at the job for a specified number of years

  • Be wary of automatic forgiveness lans. Pay a min amount for 25 years and remainder forgiven. Sounds great but must pay perfectly and refile each year for those 25 years to get forgiveness. Program has low success rate. 

 

Closing thoughts: 

remember the Money 101 formula from early episode

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Copyright 2019 by: Ryan Taillon (site) and Leslie Loftis (content)