Student loan relief is over. Thanks to the Supreme Court’s decision to stop President Biden’s student loan forgiveness plan, student loan debt is back to haunt the collective. Those who will feel it the most? The women who make up ⅔ of America’s $1.54 trillion in student loan debt.
With debt repayments looming, an unbudging wage gap where women still earn an average of 17% less than men, and an unforgiving society with pink tax, zero maternity leave, and limited financial support – will women ever have a chance to get out of debt?
The short answer is yes. And when it comes to student loans, there are four places to start.
What can women do to pay off debt faster?
First, don’t ignore it. Like weeds in a garden, debt only gets worse if left unattended. Here are three areas to get started.
1. Calculate the TRUE minimum payment for each loan.
An accurate minimum payment is the key to unlocking a debt-free life faster. Unfortunately, the minimum payment on the loan statement often reflects the amount a borrower must cover to stay in good standing with their financial institution; not the amount to become debt-free.
To calculate the “true” minimum payment, plug in the principal balance (the total loan amount owed) and the loan interest rate into a free online debt calculator, such as the one available at Penny Finance.
If the amount given is currently beyond financial means, start small. Even adding an extra $20 or $30 per loan payment can exponentially decrease the amount paid in interest, and allow borrowers to pay off debt faster.
3. Check eligibility for loan repayment plans and loan forgiveness.
Thanks to the new Saving on a Valuable Education (SAVE) Plan, more people will have access to lower income-driven monthly payments, and a better chance to clear student loan debt. The SAVE Plan might be a great choice for individuals earning $32,800 or less, or for families earning $67,500 or less.
There are also new rules for federal student loan forgiveness: loan balances of $12,000 or less will be forgiven after 10 years (instead of 20 years). Teachers and public service workers (including military and nonprofit) have their own loan forgiveness programs: Teacher Loan Forgiveness and Public Service Loan Forgiveness (PSLF).
Hopefully, the new SAVE Plan can pave the way for better debt solutions – so it’s the perfect time to research and apply for a new loan repayment plan or loan forgiveness program.
Visit https://studentaid.gov for more information.
4. Ask your employer for help.
Some companies already help their staff pay for student loans. If direct support is not possible, employers can invest in financial wellness platforms and resources designed specifically for women. When women know how to manage debt and finances better, they stress less – keeping everyone happier and more productive inside and outside of the workplace.
In conclusion
When we empower women with the right resources to make confident financial decisions, we can help erase a significant chunk of the $1.54 trillion in US student loan debt. And with more money to spend, who knows? Perhaps we can finally give our economy a much-needed boost.
Image and article originally from www.benzinga.com. Read the original article here.