Recording of webinar: https://www.youtube.com/watch?v=4d2rRTnML1Q&feature=youtu.be
Notes/big takeaways from our session:
- there are tools and resources – we can help!!
- amortization calculator: https://www.creditkarma.com/calculators/amortization
- subsidized vs unsubsidized loan: does the loan start accruing interest before you graduate? Or can you wait to make payments till you’ve graduated?
- subsidized: NO interest until after you’ve graduated; usually between 6-10 months “deferred”; means you don’t have to pay
- unsubsidized: starts accruing interest as soon as you take out the loan
- credit card repayment calculator: https://www.creditkarma.com/calculators/debtrepayment
- what I can’t calculate on an amortization calculator – what happens if I make a payment that doesn’t cover the interest every month
- compounding: if you don’t make your full payment, your base amount grows
- how interest works!
- ParentPLUS loans – your parents take the loans out, rather than you
- make sure that you get a life insurance policy to take care of your loans if you die – so that your parents don’t have to pay for them: https://thecollegeinvestor.com/9675/student-loans-die/
- when ParentPLUS loans are discharged/dismissed, the IRS treats it as income
- get a 50K policy – term life – it’s a few dollars per month. Will cover income tax, funeral expenses, etc
- When do you buy insurance? For the risks you can’t afford to take
- If you have a subsidized loan, and pay it off as soon as you’re done with school, the amount of loan still stays the same right? YES
- 10-year pay-off term
- 20-year pay-off term
- income-based repayment <- avoid this! almost never covers the principal – so the amount you owe isn’t getting smaller
inside 10- and 20-year options – either plan – you owe the same amount of money
- fixed/level payment – never changes over the entire period of time you’re paying off the loan
- graduated payment amount – predicated on the belief that your salary/income will increase
read through every single one of your loan contracts!!!