Living with student loans can seem to take over your life. Everybody knows that paying off your student loans is not your only priority; you have the mortgage, car payment, credit cards to pay off, all while thinking about how you will save up for retirement. It is important to start saving early for retirement, as it can be hard to make up for lost time.
You may think that there is no way for you to put money in your IRA or 401(k) when you are drowning in student loan, but there are ways. By following a few simple steps you can gain control over your student loans, while saving up for retirement.
First, it is important to figure out exactly how much you owe. It is helpful to set up a fixed payment plan with fixed payments coming from your checking account. This is useful if you are struggling to pay your minimum payments and are willing to extend your length of repayment. It is important not to defer your loans or put them into forbearance in an effort to contribute to retirement.
Next, it is important to find the right payment plan that fits your needs. Consolidating your student loans can be helpful to those who have multiple federal loans. Consolidation can extend your time span for repayment, so it is important to think about if it is the right choice for you.
Budgeting can help you stay on the right track for paying off student loans and saving to retirement. It is suggested to set aside twenty percent of your budget towards financial priorities, such as repaying defaulted student loans and saving towards retirement.
Sadly, retirement cannot wipe away your obligations to repay your student loans. Defaulted student loans can cause up to 15% of the borrower’s Social Security disabilities and retirement benefits to offset. By paying off your student loans as quickly and efficiently as possible, you can focus our efforts on contributing to your retirement plan. Student loan forgiveness programs can help you with this, and are a great way for you to get your student loans in check. Continue to visit and check back for more tips and help on paying off your student loans.