It is estimated that 30 percent or more of a graduate’s income goes towards a student loan debt payment each month. With more than 80 percent of student loan debt holders unaware of how long it will actually take to repay their debt making minimum payments, the push to teach college hopefuls alternatives to taking a loan is becoming more important than ever.
The best time to start saving for college is at the birth of your child, but we know that isn’t always the most realistic idea in practice. The fact remains that starting a college savings at any point before heading off to college is a smart money management practice. However, most people don’t know how to save the right way. Here are some tips for savvy saving practices:
- Save consistently— outline your plan for saving a specific percentage of any income you make, even 5-10% is enough to start.
- Save safely — allocate a portion of your overall savings that can be used as an emergency fund in the event you need to draw from your savings.
- Save specifically — plan your draws and purchases from your savings beforehand so you don’t take more than you need.
If you are already suffering with the burden of student loan debt, contact a student loan lawyer to help. Chances are you are overpaying and could qualify for a significant reduction in your monthly loan payment, or even find loan forgiveness.