How to Prepare for Student Loan Payments

Just graduated and feeling overwhelmed with your finances? Here’s what I’d do if I were in your shoes—step by step. 1. Get a full view of your student loans → Create a spreadsheet. → List out every loan: balance, interest rate, minimum payment, servicer. → Group them by federal vs private. → Highlight which ones are highest priority. Then? Do some research or talk to someone who’s navigated it already. Understand your repayment options and how things like SAVE or PSLF could apply to you. 2. Know what your income actually looks like after taxes → Whether you’re getting paid weekly or biweekly, figure out what hits your account. → Set a baseline rule: aim to save at least 10% off the top. → I’d lean toward Roth (IRA or 401(k)) if you’re early in your career and expect to earn more later. But either way. Just start. 3. List out your fixed expenses → Rent, car payment, insurance, groceries, utilities. → This is your monthly baseline aka the non-negotiables. Knowing this helps you understand how much flexibility you really have. 4. Use a reverse budget → Instead of budgeting based on what’s left over, start by saving first. → Then fund your fixed expenses. → Whatever’s left? That’s your guilt-free spending. Or the money you can put toward further education or future investments. 5. Focus on this phase of life →This is your runway. → You’re finally earning after years of delayed gratification. → This is when the habits you build either set you up or set you back. Most new clinicians are either winging it… or avoiding it altogether. You don’t need to be perfect all the time. But you do need to be intentional. ___________________________ Some IRA’s have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney. Distributions from traditional IRA’s and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 ½, may be subject to an additional 10% IRS tax penalty.

Want to pay off your student loans? Here’s the mistake most people make: --> They only know the total balance “I have $X in student loans.” Ok, but what’s the makeup of that balance? - How many loans do you have? - What are the interest rates? - Are the rates variable or fixed? - What are the payment plans? - Are they federal or private? Without this information, you can’t know if: - There are refinance opportunities - You need to change payment plans - Extra payments are applied in the best way You can’t have a paydown strategy without knowing what you have. Know what you have, Implement a plan that makes real progress. #money #finances #financialplanning #studentloans #education

Student loan repayments start October 1. This is the week to get (re)connected with our student loan servicers if we haven’t already. It is also worth noting that with a possible government shutdown, trying to get all of this sorted out after October 1 could become even more complicated after this week. Some things to keep in mind: 1. There are several types of repayment plans if we cannot afford the regular repayment. Right now, most servicers can take a verbal application with a verbal certification over the phone. No documentation required. So, you might as well just get it done with. 2. Many servicers will give you a discount on your interest rate if you sign up for direct debit. 3. Beware of scams. With all the back and forth about student loan forgiveness, scammers are taking advantage of that to get your personal information and collect money for forgiveness that does not exist. Make sure you are communicating with the Department of Education or your servicer directly.

How to make October less scary 💀. I'm not talking about Halloween, but something much more sinister— The student loan pause is over. ☠️ With payments starting up again, it's time to get your plan together. 4 steps to jumpstart your game plan: 🔸 Log in to your student loan account(s): Dust off the cobwebs and figure out what your monthly payment will be. 🔸 Understand what repayment options are available to you (studentaid.gov, review the SAVE program). 🔸 Tip: If you have more than 1 loan, plug your numbers into Undebt.It (free version) to crunch your debt payoff timeline. 🔸 Revisit your short, mid and long-term goals: What big savings goals are coming up? This can help you start to determine where student loans fall in order of prioritization. Don't let student loans spook you into non-action. 👻 This is a great excuse to review your finances and make a plan to gain full control over your financial future. 📷: Celebrating Día de Muertos in Mexico City at a salsa party in 2019 #personalfinance #studentloans