Apart from other factors, discretionary income plays a significant role in determining an individual’s wealth. One cannot possibly save and invest in the future if they are left with little or no money after paying taxes and basic expenses. This article will shed light on four ways to manage and increase your disposable income.

Certainly, financial planning directs you to happy and secure financial future. It was noticed that the most important skill for a secure financial life is to learn how to manage money wisely. For that, you need to ascertain your potential time frame, efforts and need prior to the start.

Some smart tips to invest money prudently for a prosperous financial future are:

Live Up On Your Budget

People with a proper budget tend to have good control over their finances.  They are able to successfully manage steady cash flow, short-term dues, and lay the grounds for big goals. People may have different budgets but the same cash flow because of their different spending habits and financial aspirations. The best way to save money is to change your spending habits according to your past experience and set clear long and short term financial goals.

Set Your Own Business

An ideal way to boost your income is by setting your own business. Like a salary or a second job, keeping a business flourish will require a lot of your time and determination. However, your jump from being an employee to a business owner will make you view more of the income as a result of your labor because taxation for entrepreneurs seems trivial in front of the IRS heart attack to employees. Part of your Business expenses may be claimed against other sources of income; however, you need to follow the guidelines wisely.

Home Investment

Your home is your most useful asset but people tend to lag behind when it comes to house maintenance. If you spend your discretionary income in up keeping your house, it will ultimately benefit you in ways like decreasing utility costs and increasing the value of your house. One way to increase your property’s value and decrease your heating-cooling finances is to invest in the windows and insulation with the refunded tax.

Pay Off Debt

The last thing that people consider to spend their discretionary income on is paying off debt because of the intangible results. But, paying off debt can give you more than you expected from your investment. For instance, paying 15%  interest on a credit card worth $3,000 balance, paying off debts implies that $450 less will be due on the credit card in the upcoming year.  If you are incapable of paying the full balance, you should at least make minimum payments to reduce your future balance statement. 

 Income from Investment

After being successful in managing your discretionary income to make valuable savings, one can go for financial investment to earn more.

Income earned from investing refers to the passive income as you do not actively put effort but still earn money. However, investment income requires active efforts in the beginning -from researching investments to developing and maintaining your portfolio, to effectively managing student loans and their payments etc. But this effort seems little in front of the day and night toil. You have plenty of options when deciding Investment Avenue, such as real estate, bonds, stocks, etc. Generally, they return money to its shareholders on the basis of the amount of money one has invested.

Investment is a method to generate and accumulate income gradually. For instance, on investment of $1,000, if you receive a 20% Return on Investment (RIO), you can yearly get an amount of nearly $200 that even after eliminating any tax or fee. However, it is not guaranteed to have a continuous return of 10%. Stocks, which hold a history of granting dividend also known as ‘income stock’, could be profitable to earn income. Though the investment results are a matter of patience, it will not show swift outcomes, unlike a second job.

The more money you invest, the more money you will earn as returns. Investment can increase your disposable income, thus doubling your money. However, you may not get instant fruitful results unless you are surrounded by large capital. The biggest investment assets are patience, time, and discipline ( it is also tax dependent ). It is known as one of the most certain ways to increase your disposable income without putting your huge efforts.

The Catch

The simplest yet effective way to increase the discretionary income is ‘spending less and saving more’. It is the only strategy that is free from the risk of affecting your taxes and can be amalgamated with other strategies such as providing access to a student loan forgiveness directory.

It does not require plenty of time and effort. So, make a habit of spending less than you make for financial freedom. This idea is reinforced by Benjamin Franklin as he said, “If you know how to spend less than you get, then you have the philosopher’s stone.”

Are you starting your college degree and a bit short on the college fund? This isn’t a noel situation at all. A number of students apply for the financial solution that is widely known as student loans. About 0 million American students opt for student loans for the ease they bring forth in the completion and rather a hassle-free completion of their college degree.

The student loan is a large sum of money that you borrow from a financial institution for your higher education and pay back within the agreed time along with interest. The terms may differ according to the amount of loan, but interest is a companion in most cases generally.

To manage your average lifestyle along with higher education, it is important to get to know-how of student loans and how they work. This information under your belt before you start college helps you in drafting your applications and target the colleges according to your study plan.

How to Apply

Some of the common options for student loans are:

Federal Loans

One of the most common stops for students applying for student loans for higher education are Federal Loans. One of the main reasons for this type of loans being so popular among students is the low-interest rate. That is lower than the many options available other than those funded by the government. Also, one of the key points of these loans includes the flexible repayment schedule. This allows students to follow an easy repayment schedule that suits their situation.

These loans however, are hard to get in most cases since the inflow of student application is magnanimous. Due to the immense popularity and ease of repayment, these loans are in high demand. Also, there is a limitation to the amount borrowed by the federal loan option. So if your tuition fee is escalating the numbers set, you will have to look out for options other than this one.

There are two categories of federal loans:

Subsidized loans: The subsidized federal loans tend to provide a better deal as they are devoid of interest while you are pursuing your education. Also, you can apply for a deferment period where you take a break from the repayments, so to start paying later when you find work or ample money to support you through it.

Unsubsidized loans: While ideally, students apply for the previous category but not everyone is able to get them due to strict eligibility criteria), hence the unsubsidized loans. These loans are similar somewhat. However, in this case the interest is incurred during your study period and would also be present if you apply for deferment of the payments.

Private Loans

The private student loans usually are looked up as an option once one has run out of the federal loan, or grant options available; or that they haven’t been able to cover the entire amount needed. These loans are issued by the financial institutions, most popularly, the banks. The financial institution only determined the terms of the loan and the interest rate and repayment schedule is also set by the same. One of the factors to keep in mind here is that the private student loans keep in check your credit history. The credit check is essential since there are often hefty amounts that are lent by these institutions and thus the security clearance. Also, the involvement of parent/guardian could be necessary for the students if the student isn’t able to qualify for the loan.

How to Apply

Some of the basic steps include:

• Fill out the FAFSA (Free Application for Federal Student Aid) form. This will determine what type of loan you are eligible for. This is important to be filled out for all the study years you aim for.
• Private student loan candidates need to start by filling out loan applications for all the lenders and financial institutions you are going to consider.
• Apply for the entire amount you need for your student year. If you have applied for any grant r scholarship, you can do the math.
• It is wise to apply for what you need as the repayment does include interest, which when accumulated over time, could be quite a hassle, especially during student years.

In addition to these tips, there are also options for repayments that include payment after you’ve graduated, such as refinance student loans, the extended repayment schedule, and the income-based payments that help several students easily pay off their student loan debts.

It is a good idea to research for the pros and cons of all the options you are willing to consider for your student loan acquisition as a freshman as it helps determine the course of repayment for another decade or so.

Do you know that there are some of the best private student loans that can help you if you have already depleted your savings or federal student aid? In this article, we will list and discuss the list of available private student loans.

Regarding school fees, you need additional assistance from time to time. If you’ve already run out of savings, grants, gifts, and federal substitute help (such as student loan forgiveness for nurses), private substitute credits are the next place to wait to pay the bills.

While the best private student loans generally charge more than federal loans, when used to earn a major degree, they can be especially beneficial. While selecting your student, the most critical point to look at is the cost and fees of the loan. You can do better by looking.

Private student loan rates originate from a combination of your loan payment record. They publish the financing costs established by the Federal Reserve and the financial framework and the terms of the student loan you choose.

Also, be aware that many private lenders require a co-signer, usually a parent or other family member to whom your credit obligations will be passed on to should you drop fees anywhere. This is where it’s a good idea to learn how to start investing.

That also implies that your movement of terms affects your financial evaluation, so in case you agree to accept a loan with a cosigner, it is vital for both of you that you pay on time.

As you inspect costs, make a point to consider the cost of financing, start-up costs (assuming there are any), prepayment costs (assuming there are any), and the different costs the lender may charge related to the loan.

Best Private Student Loans

Now that you know what to look for, here is a list of the best private student loans to apply for today.

1. Best Overall: Credible

Tenable ranks first in this summary due to a remarkable and supportive element. Not an instant study loan specialist.

Rather, with an application at Credible, you can get the fees of up to eight substitute loan specialists without a moment of delay. This saves you time and possibly cash as Credible searches for you.

Some of the lenders make our largest summary in their own right. Current accomplices incorporate Citizens Bank, College Ave, Discover Student Loans, EDvestinU, iHELP, INvestEd, Raise Private Student Loans, Sallie Mae, and SunTrust.

These lenders incorporate graduate and student advancement options with loan rates ranging from 3.47 percent from the lowest to 13.99 percent of the most astonishing with 5-20 year terms.

In the remote possibility that you may need a private student loan, you may be able to discover it and an aggressive rate at the Credible Mall.

2. Best For Flexible Options: Sallie Mae

Sallie Mae is by far one of the best private student loans bank on the market today. This eclipsed the next great creator multiple times.

Sallie Mae offers both student and graduate student loans with variable and fixed loan costs. Sallie Mae even offers credits for K-12 in case you need to send your children to a school-based on tuition.

Being so important, Sallie Mae can offer almost any variety of private advances that exists. The credits are accessible to students and tutors. There are no start-up fees or pre-fee penalties, and it takes around 15 minutes to apply.

For student loans, variable rates range from 4.37 to 11.23 percentage, and fixed-rate advances range from 5.74 to 11.85 percent APR. When you make the installments on time of 12, you can meet all the requirements to download a guarantee and transmit the credits individually.

3. Best For Flexible Payment Plans: College Ave

School Ave is a full credit administration substitute lender for students, graduates, and parents. There is no application fee, and it only takes about three minutes to finish an application and get an option.

Fixed loans run from 5.29 to 12.78 percent and variable rates range from 3.94 to 11.19 percent.

School Ave simply makes student loans, so they are completely good at it. School Ave’s progress is basic and direct. The focused online bank offers terms of 5 to 15 years. It offers a cosigner discharge option.

One thing to remember: College Ave does not offer a uniform patience option. Those are audited and affirmed on a case-by-case basis. That offers greater adaptability; however, there is some uncertainty as to whether the possibility of continuing to face money related challenges can be fully affirmed.

4. The Best Of A Major Bank: Citizens Bank

Citizens Bank has been around for quite some time but is a more up-to-date participant in the student loan market. Be that as it may, it came with a bang and offers focused rates, low expenses, and a wide range of alternatives. Resident Bank student credits are issued under the Citizens One brand and are available in year 5-15 terms to younger students or guardians.

A significant period of time is required to adjust to the bill for a cosigner discharge, the facility on time 36 to be careful. Fixed financing costs range from 6.45 to 12.05 percentage, and variable rates range from 6.42 to 12.02 APR percentage. As with most substitute banks, you can get a 0.25 percentage refund with scheduled fees.

Citizens do not charge any start-up or prepayment fees of any kind. You should never have to pay an additional expense to satisfy your student credits early. However, those types of lenders do not do so in this overview.

These are the best private student loans for 2020.

A best credit builder loan simply refers to funds that are easily accessible and have minimal terms for approval. They are specially designed for people who are in the need to build credit due to the fact that they lack a decent credit history.

When you opt for a credit builder loan, you normally choose a sum between $300 and $1,000. The simple explanation is that you do get access to these funds until and unless you have paid back the full amount.

Funds you borrow are transferred into a savings account. You are supposed to make monthly repayments incurring an interest rate. The financial institution, which is the lender, in this case, will report back each transaction to credit bureaus in the United States: TransUnion, Equifax, and Experian.

Once the entire loan is paid back, you will be entitled to the funds which the lender kept in your savings account. In many cases, you are given the funds you borrow right away without having to go through a repayment term. For this, you will need to invest the borrowed amount into the savings account under the name of “security deposit” for the credit builder loan.

There are also cases where you can be granted a loan and avail access to funds right away, without the need to invest in the savings account in the first place. In these cases, the loan rate is high, and the loaned amount is less.

Since you have to pay back the sum of the loan before you get access to funds, there is no risk followed for the lender in granting you a credit builder loan. Credit builder loans are meant to encourage you to save money and build credit on the side. Later, you get an investment established in your bank account once the owed amount is paid back.

The Best Credit Builder Loan In 2020:

USALLIANCE Financial Credit Union

This financial institution has an A+ BBB rating and you will benefit from published rates once you enroll in the automatic payments process. If you choose not to enroll, the interest rate will be increased by 0.25%. We bring you the credit union’s package as the best credit builder loan this year.

• Loan Amount: $500 – $2,000
• Term Length: 12 – 24 months
• Lowest APR: 9.74%
• Fees: None

The Risks Involved In Credit Builder Loans

It is pretty clear than credit builder loans have numerous benefits for customers. They successfully let you improve your credit score and later benefit from financial sustenance. However, there are also risks associated with credit builder loans.

Here are some problems that you might face:

Credit worsens if you fail to make timely payments: Making payments is mandatory, otherwise, it fails to do the job. You acquire this loan to improve your credit rating, but this will come back to bite you if you cannot make payments on time or altogether miss out on your deadline.

High fees are incurred sometimes: Financial institutions that act as lenders here have different terms for signing up for their programs. Each body has application and processing fees, which you need to be aware of. Some bodies end up charging you a lot more than the other.

Paying interest on the money you do not have access to: In general, you might have to pay an amount of interest on the sum you cannot even use. The interest rates offered are less than 10%, but this is still not the case. People find it frustrating to pay interest on money they are not using.

Final Thoughts

Credit builder loans are an effective way to improve your credit score in the longer run, but it is important to make the right choice. Do not forget that they are the most affordable and practical solution to a bad credit rating.

You should make a decision by evaluating options and considering your position with respect to your financial state at a given time. You can also keep in consideration options including a secured credit card, or paying off student loans, as well as learning how to start investing. Our best recommendation is to go with the choice offered by you since it remains a safe and practical one. We wish you the very best of luck!

If you’re on your path to a better academic career, do not stop yourself because of the lack of finances. In this article, you will find all the important information regarding the best student loan options for high school graduates. Learn about all the best student loans to understand the different methods of borrowing money to pay for your college expenses.

So once you are done exploring the grants and scholarships, you might want to check out the federal student loans available for high school graduates to continue education. You may also be interested in learning about private student loans, that are not associated with the government. The only way to determine which option is the best, keep reading.

The Different Types of Student Loan Options

Learning about your borrowing options is the first thing you need to think about. As mentioned above, the two most common ways to borrow money for college are federal and private student loans.

Let’s check each of these options in detail:

Federal Student Loans

There are three different types of federal student loans. These loans are backed up by the government directly and are associated with the Federal Direct Loan Program.

• Direct Subsidized Loans

These loans are given to students based on their financial needs. The procedure for this one is pretty detailed to ensure fair judgment is given.

• Direct Unsubsidized Loans

These loans can be given to students even if there’s no exceptional need for finances. Also, these are non-credit-based loans, so you don’t have to arrange a consigner to be eligible for these loans. Your school will be involved in the process to determine the amount you can borrow.

• Direct PLUS Loans

These, on the other hand, are credit-based loans and are unsubsidized by the government – meaning the government will not pay for the interest on the loan. These loans can be given to parents, graduate students, and professional students.

It is recommended that you always check out your federal loan options first before going for a private student loan. While private loans are comparatively easier to get, they usually have higher interest rates, and different repayment options.

Private Student Loans

After exploring other financial aid programs like federal loans, grants, and scholarships, you still have the option to turn to private student loans if you need more money for college. These are issued by private lenders, banks, and other financial institutions, and therefore, do not follow any standards for interests or repayment options.

• Private Student Loans

These are exclusively available for students but often require a consigner to get the loan. Students can ask their parents or any creditworthy individual they know to become their consigners.

• Parents Loans

The loan can be opted for by the parents of the students as well through this option.

Applying for the Loan 101

Both federal and private student loan options have different processes for application.

For a federal student loan, you need to fill out the FAFSA (Free Application for Federal Student Aid) program. This is a must step to start of your federal loan eligibility process. But before you submit the FAFSA or any application for a federal loan, here are a few important things to keep in mind:

• The submission of these applications is absolutely free.
• You must complete the FAFSA for each year you need money to continue college
• Be proactive with your approach. The earlier you opt for it the better.

You can only find out about the amount that you’re eligible for once you get your financial aid offer.

On the other hand, when you opt for a private student loan, the processes would vary depending on the lender you choose. However, the application in this regard is pretty direct. Here are a few steps to make it simpler for you:

1. Check out the lender’s website and learn about the loan options available for you.
2. Always compare the interest rate and check the repayment flexibility to opt for the best option available.
3. With private loans, you can also apply on the website. Make sure you choose your interest rate type and repayment option according to your suitability.
4. Adding a credit-worthy cosigner always improves your chances of getting the loan. So make sure you think about that option.
5. The lender will communicate the decision after thoroughly checking out your application.

Final Word

It is imperative to be absolutely responsible for your loan. The key is to study the repayment option in detail before opting for a loan, such as the case with FAFSA loans. Also, it is best to first look for free money that’s not only interest-free but is non-repayable – such as grants, scholarships, and work-study loans.

You can then opt for a federal student loan option if you still need money for college. A private student loan should come as a last resort, and the first thing students need to learn is how to start investing for a financially free future.

Student loans have always helped young adults to find the financial assistance they need to complete their education. In this guide, we will discuss everything you need to know about FAFSA loans, one of the premier ways to pay off student loans faster, and an alternative for you if you can’t avoid student loans.

It is crucial for every family with kids – especially those who are about to complete their high school – to know what FAFSA is and how it works. Unfortunately, despite having a benefit, most families do not consider their options or dismiss the idea of opting for financial aid for college expenses. One of the major reasons is because of the confusion that they may not qualify for it. Even if you earn enough money, you may be eligible for some percentage of help and that’s where you could surprise yourself.

The financial aid doesn’t always have to be money for studies. In some cases, it could be in the form of lower interest loans, which every person – regardless of the type of money they’re making – would be definitely interested in. For this reason alone, it is totally worth it to give it a try and opt for FAFSA (Free Application for Federal Student Aid) for college-bound kids.

What Exactly are FAFSA Loans

FAFSA is basically a free application form that students or families apply to gain some kind of financial assistance to bear the college expenses from the federal government. Individual and state colleges, universities, and even private scholarship programs depend on the information of FAFSA.

The main objective of this financial aid is to figure out if you need any financial assistance and how much you qualify for. The financial assistance is offered on both need-based as well as non-need based.

How Does FAFSA Work?

The procedure is pretty much the same as any other financial aid program. The key is to determine the financial need of each individual student or family based on the answers to a series of questions. These questions are mostly related to the income, expenses, assets, and other similar factors associated with the students and their families.

There are also a question about the number of children in the family to calculate the Expected Family Contribution (EFC). Before the government decides to give some financial aid for college, it needs to be absolutely sure if the student deserves it and how much he or she can pay with their own resources.

There’s also a detailed asset calculation to determine fair results. For assets, FAFSA assumes that  20% of the student’s assets and 5.46% of the parents’ assets are needed to bear the college expenses for one year. The students are required to share information such as investments and bank account details for the calculation. It is, however, important to remember not to include the value of any life insurance policies, retirement accounts, or annuities. The equity within the family home is not a part of the calculation either.

Once you provide all this information, FAFSA will decide whether you deserve a need-based aid or a non-need -0based aid. In some cases, FAFSA may decide to give you a combination of both these aid options.

The Types of FAFSA Financial Aid

Before you reach out for the real deal, you can get some estimated on the Federal Student Aid’s online portal. Here’s more information on the different programs that you can apply for in each of the financial aid categories.

Need-Based Financial Assistance

Federal Pell Grants

The most common and attractive type of financial aid for students is the grant. That’s because grants do not need to be repaid. These are, however, difficult to qualify for if you do not check all the boxes on the FAFSA requirement. These grants are mostly secured for students who are in exceptional financial need. The maximum grant set for this academic year is $6,195.

Federal Direct Subsidized Loans

These loans are subsidized by the government so you can relax without having to worry about the interest for the entire college period and until the six months post-graduate period.

Federal Supplemental Educational Opportunity Grants

And while these are also non-repayable loans, they are very rare and only available for certain schools. These too are meant for students who have very limited resources to take care of their college expenses.

Federal Work-Study

This program offers paid part-time jobs for students who require money for college expenses. This financial aid option is available for both undergraduate and graduate students.

Non-Need-Based Financial Aid

Direct Unsubsidized Loans

These are pretty similar to the subsidized loans with one distinctive exception: the loan interest is not paid by the government. The interest needs to be paid by the student or their family. In case of non-payment, the interest amount will be added to the principal loan amount.

These loans are available despite the financial situation as a part of a financial aid package.

Federal Plus Loans

The loans can be opted for by parents or graduate students. The Federal Plus loans are non-subsidized so it is the borrower’s responsibility to pay off the interest or it will accumulate and added to the principal.

Conclusion: FAFSA Loans for New Students

FAFSA loans don’t work as a loan forgiveness method. If you’re looking for loan forgiveness for nurses and teachers, this may not be the right option. However, for students, they’re perfect

Here’s the detailed breakup of the type of loans you can opt for. Just make sure you choose the one that offers you the most favorable terms to ensure timely repayment to avoid trouble.

It doesn’t matter what your job is or how much you love it, work is never fun and exciting 100 percent of the time. There will be days where you feel bored, uninspired, and burnt out. For some, this is the norm. Whether it’s once a month or every day, feeling this way will drag you down and throw you into a cycle that is difficult to get out of. 

If you find yourself in this situation, you need to get inspired and engaged once again before you become permanently miserable. If you’re a writer, you can use your own craft to pick yourself up and re-ignite your passion. Creative writing opens a beautiful realm of possibilities where anything can be real.

Use this to your advantage and create a narrative that inspires and empowers you. Step into a new world and create experiences that you’d like to have, and use them to keep you going. Use these tips to develop an exciting and inspiring character narrative. 

Create a Backstory

A character narrative is nothing without a proper backstory. This is what gives it depth and meaning. You can use elements of your own life to create this backstory that’s supposed to inspire you. Don’t stick too close to reality though. It’s fiction – elaborate and embellish as much as you want. 

The backstory needs to be detailed, believable, and meaningful. It creates the base for the story and is a huge part of who your character is today, and why. There needs to have been some sort of hardship or conflict – a story is never built on a perfect life. 

This can be an overwhelming part of the process and it’s easy to forget the little things that are crucially important. This is when a character profile template is a useful tool. 

This will help you flesh out the important details while ensuring you remember everything that could possibly be helpful and relevant. 

Make the Character Believable

This is a golden rule of storytelling but it’s especially important for your endeavor of self-inspiration. No matter how fantastical your story is and how many magical powers your main character may have, they still need to resemble a human being in character, emotion, and experience. 

A believable character has flaws and weaknesses. Even the hero is imperfect and this is what makes them relatable. Even the best human beings on this planet have flaws and negative tendencies, and so must your character. 

They also need to be emotionally vulnerable. They can’t be closed off or no reader will get to know them enough to care about them. Use events and circumstances to show your character’s personality, strength, respect, and compassion. Or, you can use the same events to showcase their lack of these things and other negative traits like their temper and pet peeves. 

Find the proper balance and you’ll have a strong, believable character. Not too perfect, but not too evil either. Their negative qualities shouldn’t be irredeemable. They should be things that are worked on and improved throughout the narrative. 

Show Motivation 

It doesn’t matter how fleshed out and believable your character is if the story is flat and boring. Your main character needs a meaningful and legitimate motivation behind what they’re doing throughout your story. 

Examples include avenging the death of a loved one, working towards an accomplishment or title, winning over a romantic interest, etc. This is their main goal. They should have a goal and a reason for chasing their goals.

Motivation is crucial for advancing and enriching the plot but it also reveals a lot about their character. There can be multiple reasons for achieving the same thing, and why your character is doing it will say a lot about who they are. This applies to their “main” goal as well as the smaller goals, desires, and decisions throughout the story. 

Why did they stop and help someone? Was it out of pure selflessness or did they get something out of it? Why do they want to romance a person? Are they truly interested or are they trying to manipulate or use them? 

The motivation behind an action can be so telling and it’s important that you make it known.

Show Change 

Your main character should be dynamic. This means they need to change and grow throughout the story. This is perhaps one of the most important elements that will inspire you. As you bring your character through inner change and development, it can inspire you to do the same in your life. You may even think of practical, applicable ideas from your own brainstorming and writing. 

The change you create within your character is paramount to the development of your narrative. Everything that happens will affect your character in some way and either contribute to or impede their ability to grow. 

Use a character development template to help you create a believable and effective development cycle. This template includes questions and prompts that help you see how the life of your character will unfold within the timeline of your story. 

This will not only help you remember all the important details but it gives you a visual of your character and their story arc. 

Inspire Yourself

Creating anything new and artistic is always fun and challenging. Creativity is a fantastic outlet for frustration and expression. It opens your mind to new possibilities and instills a sense of wonder and inspiration that can spill into any area of your life. 

Put your writing skills to good use and create a character narrative that inspires your own life. 

The student loan crisis is a serious socio-economic issue in the US. As of 2019, the total accumulated debt has crossed the $1.5 trillion mark. The rising cost of tuition, along with the changing requirements for the modern workforce (that are driving more students to attend college) are responsible for the rise in the national student loan debt. At times like these, it’s crucial that you teach your child how to pay off student loans, whether they’re in high school, exploring career options, or at college, already knee-deep in debt.

At school, children aren’t taught some of the most basic aspects of modern life, one of which includes managing personal finances. As their parent, guardian, or mentor, it’s up to you to teach them how to handle this unfortunate financial pickle.

Regardless of how old your child is, here are some tried-and-tested ways to teach them how to pay off student loans.

1. Teach Them About Loans

First and foremost, you have to start by teaching them about loans, the different types, how they work, and their alternatives, if they don’t know about them already.

As a parent, you may be tempted to look after all of the paperwork for your child.

However, ideally, you must involve them in the entire process, right from the beginning.

Start by telling them about the different types of student loans i.e. Federal, Private, and Refinance.

Tell them how they differ, their pros and cons, and how to opt for the best option based on your financial circumstances.

For example, federal loans are more flexible, whereas the lending limits with private loans are higher.

Discuss and evaluate all of the options with your financial advisor before you make a decision, while involving your child.

That way, your child would have a far better understanding of how everything works, and plan ahead to pay off student loans comfortably.

2. Help Them Pay Off Student Loans with Savings

The old adage, “Teach a man how to fish and you feed him for life” stands true in this case.

The art of saving is one thing which even some adults struggle with. Chances are, you’re probably not very good at it, either.

In any case, the best way to help your child pay off student loans is to teach them how to save.

Remember, savings is a lot more than putting in a few hundred dollars into a savings account.

It’s about discipline.

The best way to teach your child about self-discipline and financial freedom is to give them books.

Here are some suggestions (some of these might even help you out):

• The Kids’ Money Book: Earning, Saving, Spending, Investing, Donating (by Jamie Kyle McGillian)
• Make Your Kid A Money Genius (Even If You’re Not) (by Beth Kobliner)
• Finance 101 for Kids: Money Lessons Children Cannot Afford to Miss (by Walter Andal)
• Rich Dad Poor Dad for Teens: The Secrets about Money – That You Don’t Learn in School! (by Robert T. Kiyosaki)

Remember, the earlier they start saving, the more likely they are to pay off their debt with ease.

3. Teach Them How to Invest

Relying on a job, whether full-time or part-time, and your savings account, isn’t enough.

Repaying student loans can really take its toll on your monthly budget. Both you, and your child, need additional income streams.

The best way to do that is to teach your child what is leadership and how to start investing.

There are different ways you can go about doing that, including, teaching them the basics yourself, enrolling them in a course, and/or buying them special books that are targeted younger people.

Open up a custodial brokerage account for them and trust them to start investing.

4. Prepare Them to Take on the Real World

By the “real world,” we mean the modern-day hustle.

Children are accustomed to having their expenses paid for by their parents. Because of this, when they do get the taste of the real world, where they have to pay for their own bills, work part-time jobs, and manage their finances, it’s all too overwhelming.

To avoid this, teach your child what it’s like to work. Motivate them to volunteer, or get internships.

Even better, motivate them to explore the path of entrepreneurship.

All of this, would put them on the path of financial stability, which would ultimately help them pay off their debt.

Benefits of Teaching Your Kid How to Pay Off Student Loans

By teaching your child how to pay off student loans, you’d:

• Ensure that they have a financially-sound future.
• Help them become financially independent.
• Help them save enough money for other, more important things, such as retirement.

Needless to say, sooner or later, your child will thank you for it.

To Conclude: Student Loans can be Avoided

With the student debt crisis going out of hand, it’s more important than ever to teach your child how to pay off their student loans, or refinance student loans, if worst comes to worst.

The term ‘kids these days’, holds more value than you think! It’s not just about their mannerisms and their behavior, but their business-savvy and maturity as well. This is why it’s been reported that this current generation is more intelligent and mentally developed than all the generations before it. This is also why it’s a good idea to start teaching the children of today, some ways to pay off student loans faster.

Student loans, for some, are the only way to pay for college. At least 1 in 3 students actually regrets taking out college loans. Also, 46% of millennials don’t want their own kids to end up the same as them. Fortunately, there are other ways to pay for college.

6 Ways to Pay Off Student Loans Faster

To that end, here are some top insider tips for helping your children prepare for college education without college loans.

Be smarter with your savings

According to Melissa Sotudeh, a financial planner and director of advisory services at Halpern Financial, the best way to create a habit of saving is to make note of it in the monthly budget. No matter where you start, try adding more to your contributions, as you gradually gain more solid financial ground.

$25 a month will definitely not cover all four years of college, even at an affordable state school. But you will have eventually built up an amount that will bring even a cheaper priced university into the fold of possibility. It will also lower the potential amount the student might have to borrow.

Look for scholarships and grants

There’s nothing better than free money, and this goes for everyone, not just students! Grants are usually aid that’s based on individual financial need. Scholarships, on the other hand, are often merit-based aid. The best place to find scholarships and grants is to look for them online.

Try to focus on free grants and scholarships only, as the paid ones are usually scams.

The internet is not the only resource. Your college financial aid office or high school counselor’s office can be a great place to look for scholarships. The same goes for private institutions. For example, the Florida PTA gives out $2,000 scholarships to high school seniors who qualify.

Consider doing part-time work

If you want to reduce your overall debt, the best way to do so is getting scholarships and saving up for college. Each dollar saved, and every dollar won in scholarships, is one dollar less that you’ll have to borrow.

In other words, every little bit of money saved or won can help. Socking away your money earned from a part-time job will definitely not cover all of the college expenses, but it can make a nice little financial dent. Some companies even offer tuition assistance to students.  

Teach kids basic personal finance management

The best way to develop financial independence in young people is to actively teach it to them. According to one estimate, students who graduated high school in the states with mandatory financial education were more likely to have better credit scores by the age of 22.

For younger children, you can start by teaching them the concept of spend/save/give. Whether kids receive four quarters, or $100, they can spend some, then save some, and finally donate some. It’s a financial exercise that’s designed to solidify delayed gratification and stop impulsive spending.

You can also tell them of the value of dedicated credit cards. For example, a Banana Republic credit card can help them take care of all their clothing needs, without costing an arm and a leg.

Budgeting is another side of the solution. Sit down with the kids as soon as they start earning any money from an after-school job, or an allowance. How much are they making? Have they racked up any bills? The basic idea is to lay the foundation of not spending more than they make. This is something that’ll come in handy once they start living on their own.

Whenever they’re preparing to leave for college, jot down some numbers with them, which will let them see exactly how much further they can take their money with a little financial smarts. Used textbooks, carpooling and meal planning, can help them stretch their money during college and after.

Consider state schools and community college

Full-time students, at public two-year colleges, receive on average, more than enough grant aid as well as federal tax benefits to cover their tuition fees. Starting your higher education journey at community colleges and knocking out the basic education requirements before transferring to one of the many state schools can be a strong way to reduce the overall college expenses.

Ask family and friends to contribute

Don’t be afraid to ask friends and family members to play a role in the child’s future. It’s something your child will be grateful for as soon as they start high school graduation. The total savings goal should be almost 80% of total college costs. Another option is to start crowdfunding.

Setting up a crowdfunding page for your child can encourage family and friends to donate.

Conclusion: Top Ways to Pay Off Student Loans Faster

Kids paying off student loans quicker, or avoiding them altogether, can work massively in their favor, in the future. It’ll also help build essential leadership skills, which will make them self-sufficient as well. If worst comes to worst, you can maintain personal finances by refinancing student loans (Here’s a student loan refinance calculator to help).

Student loans often get a bad rep, but for a lot of individuals, they can be the only way to pay for college. It’s the biggest catch-22. At least 1 in 3 borrowers actually regrets taking out college loans, and that’s not all that surprising. Plus, 46% of millennial borrowers don’t want their own children to end up in the same boat as them. However, there are other ways to pay for college. You just have to know where to look.

6 Top Tips to Avoid College Loans

To that end, here are some top insider tips for helping your children prepare for college education without college loans.

Be smarter with your savings

According to Melissa Sotudeh, a financial planner and director of advisory services at Halpern Financial, the best way to create a habit of saving is to make note of it in the monthly budget. No matter where you start, try adding more to your contributions, as you gradually gain more solid financial ground.

$25 a month will definitely not cover all four years of college, even at an affordable state school. But you will have eventually built up an amount that will bring even a cheaper priced university into the fold of possibility. It will also lower the potential amount the student might have to borrow.

Look for scholarships and grants

There’s nothing better than free money, and this goes for everyone, not just students! Grants are usually aid that’s based on individual financial need. Scholarships, on the other hand, are often merit-based aid. The best place to find scholarships and grants is to look for them online.

Try to focus on free grants and scholarships only, as the paid ones are usually scams.

The internet is not the only resource. Your college financial aid office or high school counselor’s office can be a great place to look for scholarships. The same goes for private institutions. For example, the Florida PTA gives out $2,000 scholarships to high school seniors who qualify.

Consider doing part-time work

If you want to reduce your overall debt, the best way to do so is getting scholarships and saving up for college. Each dollar saved, and every dollar won in scholarships, is one dollar less that you’ll have to borrow.

In other words, every little bit of money saved or won can help. Socking away your money earned from a part-time job will definitely not cover all of the college expenses, but it can make a nice little financial dent. Some companies even offer tuition assistance to students.  

Teach kids basic personal finance management

The best way to develop financial independence in young people is to actively teach it to them. According to one estimate, students who graduated high school in the states with mandatory financial education were more likely to have better credit scores by the age of 22.

For younger children, you can start by teaching them the concept of spend/save/give. Whether kids receive four quarters, or $100, they can spend some, then save some, and finally donate some. It’s a financial exercise that’s designed to solidify delayed gratification and stop impulsive spending.

You can also tell them of the value of dedicated credit cards. For example, a Banana Republic credit card can help them take care of all their clothing needs, without costing an arm and a leg.

Budgeting is another side of the solution. Sit down with the kids as soon as they start earning any money from an after-school job, or an allowance. How much are they making? Have they racked up any bills? The basic idea is to lay the foundation of not spending more than they make. This is something that’ll come in handy once they start living on their own.

Whenever they’re preparing to leave for college, jot down some numbers with them, which will let them see exactly how much further they can take their money with a little financial smarts. Used textbooks, carpooling and meal planning, can help them stretch their money during college and after.

Consider state schools and community college

Full-time students, at public two-year colleges, receive on average, more than enough grant aid as well as federal tax benefits to cover their tuition fees. Starting your higher education journey at community colleges and knocking out the basic education requirements before transferring to one of the many state schools can be a strong way to reduce the overall college expenses.

Ask family and friends to contribute

Don’t be afraid to ask friends and family members to play a role in the child’s future. It’s something your child will be grateful for as soon as they start high school graduation. The total savings goal should be almost 80% of total college costs. Another option is to start crowdfunding.

Setting up a crowdfunding page for your child can encourage family and friends to donate.

Conclusion

Kids paying off student loans quicker, or avoiding them altogether, can work massively in their favor, in the future. It’ll also help build essential leadership skills, which will make them self-sufficient as well.