OBG b&b164 Heather Jarvis JD in Sallie Mae strikes back!
This week’s Oldie-but-Goodie:
Heather Jarvis strikes back!
(check the other episode where she focuses on private loans here)
Heather Jarvis is back to discuss a topic that never goes out of style: student loans. Most people have them. It seems that college tuition is only rising, which leads us to wonder where all that money goes? Who do “merit-based scholarships” really benefit? What is currently on the chopping block with Congress? And, obviously, what can we do?
Heather talks us through it all and more. But if there is something that still doesn’t sound clear to you or you have more questions check Heather’s site: http://askheatherjarvis.com/
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Heather Jarvis: We’ve got this system that allows people to get an education based on their debt. So, you’re either born with money or you borrow it.
Heather Jarvis: If you’re looking for how to deal with your federal loans, these income driven repayment options are pretty great. So when I say income driven repayment I’m talking about a group of plans that people can pick between. …There’s all kinds, but what they have in common is instead of looking at how much money you owe and your interest rate and spreading your payments out over a specific period of time, which is kind of the traditional way of repaying debt, they look at a person’s income and their family size in order to determine how much they can afford to pay each month. Now it’s not necessarily the same amount that we would feel we could pay each month, it’s a specific formula.
Heather Jarvis: The main thing about debt is that it costs you money to owe money, right? …If you spend money before you make it and before you have it, so if you use borrowed funds for anything, including education, you’re gonna pay something for that privilege, and what you’re gonna pay is interest. Sometimes it’s fees also, but interest adds up over time, and so the longer it takes you to repay a debt, the more you pay.
Heather Jarvis: I don’t think everyone has to go to college, but I do know that people who go to college have much lower unemployment and much higher incomes across the board, and they do better their whole lives. And it really is the path to financial security. And so I don’t wanna get so doom and gloom about loans that people feel like they should skip college altogether, and I think everybody’s situation is different, but in general education does open doors and protect you financially even if you have to borrow to do it.