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Managing Student
Loan Debt
Managing Student Loan Debt
PICPAThe Pennsylvania Institute of Certified Public Accountants
PICPA is a professional association of more than 22,000 CPAs working together to improve the profession and serve the public interest.
Managing Student Loan Debt
Know What You OweImportant information to know about your loan(s):• How much is the principle?• How much is the interest?• How much is the monthly payment?
Managing Student Loan Debt
Know Who You OweImportant information to know about your loan(s):• Are they federal or private?– Slightly different rules and powers apply
to federal and private lenders.
Managing Student Loan Debt
Debt Reduction First step in debt reduction is making a budget!• Calculate how much you make• Record how much you spend• See where you can save money• Create a goal to pay down student loan debt
Managing Student Loan Debt
Pay Off Sooner• Always pay the minimum, try to pay more. • Set monthly payments as high as you can
afford to pay off quicker. • You’ll save on interest and end up paying less
overall!
Managing Student Loan Debt
Pay Off Sooner• Pay the loan with the highest interest rate
off first.• Look into consolidation.• Non-traditional students may be able to get
a home-equity line of credit.
Managing Student Loan Debt
Struggling to PayIf you’re struggling to make your student loan payments, don’t stop paying them! This will hurt your credit, and may have serious consequences.There are other options to help you manage your loan payments.
Managing Student Loan Debt
Struggling to Pay• Repayment Options –Standard plan may not
be the best fit• Deferment or Forbearance—May be able to
put loan payments on hold depending on your situation
• Cancellation of Debt– Can be granted in very select circumstances
Managing Student Loan Debt
Note about BankruptcyPersonal bankruptcy will (usually) not get rid of student loan debt. Need to get a cancellation of debt from the lender to forgive the debt.
Managing Student Loan Debt
Resources• PICPA’s College Savings page
www.picpa.org/collegesavings • 360 Degrees of Financial Literacy
www.360financialliteracy.org • U.S. Department of Education
www.college.gov
Managing Student Loan Debt
Questions?
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