According to Student Loan Hero, the national student loan debt increases every year. If you're a parent of a college-age child or a college student dealing with the financial hardships and pressures of paying off these loans, you know the payments and interest rates are astronomical. Tuitions can be ridiculous and other school-related costs are no drop in the bucket. Higher education is a major expense and we're paying the price for it. As per Student Loan Hero, "the average college graduate had over $37,000 of student loan debt in 2016." And the price is going up.
But did you know that students can (and do) use their student loan money on more than their tuition and classroom needs like books? It may seem a little fishy, but it's not illegal, as per Student Loan Hero. And it's been revealed as per the results of a 2016 Student Loan Hero survey that "students in 2017 are 2X as likely to spend student loan money on non-educational expenses than the class of 2016."
With so much being borrowed, one would think this dough should be going straight for what it is intended – higher education. But students are using this loot for their other expenses, some of which are totally unnecessary. Using student loan money towards non-school expenses is actually costing these students more than if they paid for these things normally, due to the interest rate. It's digging them into an even deeper financial hole.
41.3% of these students are spending their loan money on their monthly bills such as their rent and cell phones, 14.9% are using it for clothing and accessories, 12.8% for food, and 2.5% for drugs and alcohol. Perhaps the first three can be justified, but the drugs and alcohol!? Those are the students who could use their next four years of schooling the most!
The issue may be that these students can be clueless or not entirely well-informed about school-related finances. As per Student Loan Hero, 7% don't even know their yearly costs for school and a whopping 59% don't have a clue when their loans will be paid off. And while most federal loan borrowers are on a 10-year repayment plan, the average amount of time people take to pay off their student loans is an astounding 21 years.
While this news may be hard to swallow, there are ways to handle student loans with planning and commitment. Take a cue from these 5 simple steps to paying off your student loans and be debt-free in the near future.
If you're a recent college grad, take note of some important investment and financial strategies that will help you make wise money-related decisions. If you made it through those brain-bending final exams, you can ace your student loans payoff regime too.
For more detail regarding the Student Loan Hero's findings, you'll find their infographic quite revealing. As a student or a parent of one, this information can help you take the right steps towards a solid student loan plan that makes sense and saves "cents" with every smart move.
Airbnb offers an affordable option for people looking to be more comfortable as they travel.
However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.
And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.
If you're keeping tabs on the art and tech worlds, you've probably been hearing whispers about "NFTs" for the past month. Just over the past week they've entered the mainstream lexicon.
Twitter founder Jack Dorsey made the news for selling his first ever tweet. The app has been teasing paid subscription models and newsletter-like features, but tweets for sale is "the next frontier."
just setting up my twttr— jack (@jack)1142974214.0
The 2006 tweet went up for auction as an NFT, and the current bid is $2.5 Million. But what does it mean to own that? Why would anyone want to? And what even is an NFT?
Long gone are the days when the majority of Americans dreamed about owning a home with a white picket fence.
The traditional American Dream may be on its deathbed, but that doesn't mean a core component of the vision can't survive. It simply takes a diverse perspective. People can still believe they can attain their own vision of success in society with hard work, knowledge, and risk-taking. Investing in today's American Dream may literally mean investing money in our modern economy, starting with our infrastructure.
Real estate investing in particular is a lucrative method that can boost income and secure a better financial future for many. There's always risk involved, but the payoffs can far outweigh the uncertainty. Selecting solid financial investments is about confidence and competence. If you're looking for some advice on this kind of investment, here are a few savvy tips for new real estate investors.
Stick To a Specific Strategy or Niche
Real estate is a challenging sphere of the business world, one that requires several key skills: groundwork knowledge, networking, perseverance, and organization. True knowledge of the real estate market will come with time and experience, but it's a smart idea to select one area of the market and stick to it. This is the best way to attain in-depth familiarity with your specific niche.
First, choose a geographical area close by and then a niche strategy within it, such as house flips, rental rehabs, or residential or commercial properties. By doing so, you can become aware of current inner working conditions in the market and you'll have a better idea of how these trends may change in the future.
Be Vigilant About Viable Financing Options
While it takes money to make money, you don't have to use all your own money. A common misconception about real estate investing is that you must be wealthy to start off. This isn't straight fact, however. A majority of people can test the waters of real estate investing without a lot of initial cash in their pocket.
Aside from traditional financing options from banks and institutions, private lending options can be worthy solutions. Hard money lenders are popular, reasonable choices, and they tend to have fewer qualification requirements upfront. However, be sure to strategically choose a hard money lender to find the best possible fit.
Master the Art of Finding Good Deals
There may be hundreds of thousands of available properties for sale on the current market, but the bulk of them will never amount to the final money-making result you desire. Another great tip for new real estate investors is to use good math to estimate profit. Taking risks is part of the process, but you have the ability to analyze properties and use networking sources to find the greatest deal. You can't win every deal, but you can steadily work towards a thriving financial future.