Student Loans: Can Paying Them Off Boost the US Economy?

As small children these days, many of us are taught to think about what we want to be when we get older. We are asked by our parents, teachers, and family friends, “What do you want to be when you grow up?” Although that answer varies for everyone, the one thing many of us have in common is that the career we choose to do when we “grow up” will involve years of college and, at times, multiple degrees!

I know when it came to choosing my career, I didn’t think as a child, “Will I be able to pay off my student loans if I choose this career?” Now that I am on the other side of my schooling with multiple degrees and one of those adults with student loans that seem to be never-ending, I wonder how it affects more than just my budget.

I often ask myself, “Would it make a difference in the US economy if graduates and their families paid off their loans in full?” When it comes to student debt, American’s are drowning. Many people today are graduating with advanced degrees but can’t get jobs that give them the ability to pay off the loans in a reasonable amount of time or make the high payments at all!

-Pay The Interest While You Are Still A Student:

What could you do with all the room in your budget if you were not makings large payments to your student loan payments each month? Think of all the ways you could contribute to the economy if you were able to spend more on the things you want or need to spend on, rather than on only making the minimum payments to your loans!

Make a plan to pay down your loans ahead of your interest rate. There are ways to plan and budget to make sure you can make your payments and try to get ahead of the interest each month. Starting the plan for your future while you are still a student is the key to making your payments after graduation easier.   

The thought of making payments on your student loans while you are still a student can be a lot, but it is essential when planning for your future. Getting ahead of the interest payments while you are still a student is critical. If you don’t let the interest accrue while you are in school, it will stop the interest from racking up while you are still taking out the loans and in school. Less interest building while you are a student, means lower payments when you are a graduate and more room in your budget every month.

-Try To Budget A Certain Amount Out Of Each Paycheck For The Payment.

Planning your budget ahead of time is an essential part of making the right budget choices. Student loan payments tend to be very large. If you don’t plan it in your budget, you may have a hard time making the payment. Be sure to take a portion of the payment out of each paycheck.

This will help with paying the monthly payment and not getting hit with one colossal fee every month. Budgeting like this will make it so you can make your payment each month without feeling like you’re drowning. It will also give you the ability to have extra spending money in your budget when you need it because you won’t need to come up with a large amount of money all at once!

-If You Differ Your Payments After You Graduate, Or During The Covid-19 Crisis, Make Sure To Pay The Interest And Not Let It Build.

Many of us are under financial strain in our current situation with the Covid-19 crisis. For the first time, the government has frozen federal student loans with no interest to support us while we are in quarantine, but this does not apply to all student loans.

If you have a loan that you have differed, make sure it is not accruing interest while you are not paying it. Similarly to making sure to pay your interest while you are a student, you want to make sure to do the same when you differ your loans after graduating from school as well as during this crisis if your loans are accruing interest. Not letting it build will help with the payments and make them more manageable when you do enter the payment period again.

Think about all the ways you could contribute to the economy if you didn’t have considerable payments to make each month. Wiping out your student loans will give you more freedom to live and enjoy your paycheck! Planning a smart budget every month will help you reach your goal of paying off your loans and achieving financial independence. The COVID-19 crisis has put a financial strain on many families.

Planning for moments like this will help you and your family breathe more comfortably, knowing you will be able to keep your head above water and still achieve your goals. You will have more money to spend and help boost the economy once your student loans are paid in full because not having to make the payments each month will give you the financial freedom you have always wanted!

Imagine having that money to spend on something you want or need during a time Think about all the ways you could contribute to the economy if you didn’t have considerable payments to make each month. Wiping out your student loans will give you more freedom to live and enjoy your paycheck! Planning a smart budget every month will help you reach your goal of paying off your loans and achieving financial independence.

The COVID-19 crisis has put a financial strain on many families. Planning for moments like this will help you and your family breathe more comfortably, knowing you will be able to keep your head above water and still achieve your goals.

You will have more money to spend and help boost the economy once your student loans are paid in full because not having to make the payments each month will give you the financial freedom you have always wanted! Imagine having that money to spend on something you want or need during a time like this. Having financial security during a crisis will boost not only the economy but your budget a well.