Student loan debt is probably the very definition of the nine hundred pound elephant in the room. Over 43 million Americans owe a total of $1.6 trillion, with an average of $29,000 per graduate for Bachelor’s degrees. The numbers only go up from there, with Graduate school debt averaging $71,000, Law school averaging $145,500 and Medical school averaging $201,490 (Nerdwallet June 14, 2021). Clearly, this isn’t the American Dream.
You worked hard during school, took out loans to secure your degree with the expectation of higher income because of that degree, only to find yourself crushed daily under the relentless weight from debt incurred five, ten or maybe twenty years earlier. It wasn’t supposed to be this way, particularly when it has such an effect on the basics of life, such as applying for a mortgage or car loan. And even if those aren’t considerations at the moment, the monthly payments DO have an impact on monthly cash flow for bills, disposable income and especially savings.
You know you should get it paid off (or at least down), but where to start? Because of Covid, most monthly payments have been put on hold (which has helped near term), but in most cases, interest still accrues. You keep hearing that the federal government may offer student loan forgiveness, but the amounts, as well as the timeline, haven’t been discussed at length, let alone decided on. So, what to do? One option such as a debt consolidation loan is available, but it’s really just exchanging one type of debt for another. Additionally, having to qualify may be problematic as well. Debt forgiveness could be another option, but may be difficult to adhere to, since monthly payments may need to be made over a ten or fifteen year period before forgiveness of the balance (studentaid.gov).
Another option might be Your Family Bank which, on average pays off ALL debt in approximately nine years or less (results vary). So, in addition to student loan debt, other debt such as credit card debt and auto loan debt (and mortgages) could be paid off in that timeframe as well. Your Family Bank is not a debt cancellation program and does not negotiate with creditors. What it does do is ELIMINATE debt. Additionally, besides paying off your debt, a second cash account is created for any emergencies that may arise.
If you’d like to talk about if Your Family Bank makes sense to pay off your student loan debt (as well as other debts), and benefit you in other ways, please contact me at d.babecki@db3insuranceservices.com or give me a call at (941) 704-3134. As always, thank you for reading and let me know if I can be of service.
About David J Babecki
David Babecki is the Owner/Founder of DB3 Insurance Services and has over 20 years of experience in personal insurance, proudly protecting clients against outliving their money, stock market risk, and of course, insuring their lives against the unforeseen.
David started his career with Raymond James & Associates in 2000 before becoming an independent agent where he offers a number of services to solve client needs. David has spent the majority of his life in the beautiful Tampa Bay area where he currently resides with his family.
David is a Licensed Life Insurance Agent FL # D053146
The above article reflects the opinions and thoughts of David J. Babecki. The information contained in this material is believed to be reliable, but not guaranteed. It is for informational purposes only and is not a solicitation to buy or sell any products which may be mentioned. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.
Please note: all guarantees and/or promises are based on the claims-paying ability of the respective insurance company.
