Everyone knows that putting money away for retirement is a smart idea. But what if something was standing in the way of building that nest egg? A recent poll from AICPA shows that student loans have been directly affecting adults in the United States that are trying to save for retirement. The poll states that half of those that either have student loans or who have children with student loan are delaying a contribution to a retirement account because they need to make their monthly loan payments.
A staggering 81% of those polled said that large financial sacrifices have been made by either themselves or their children to consistently pay off their loans. Saving for retirement isn’t the only thing taking a backseat. Getting married, starting a family, and buying a home are things many have pushed to the backburner due to student loan debt.
These statistics really emphasize the importance of financial planning, saving, and spending when it comes to higher education. So, what are some helpful steps to reduce such an enormous burden that so many face today?
One way to help would be to look for other ways to pay for college, aside from a loan. Options such as scholarships, grants, military aid, and employer tuition reimbursement are available to those who qualify.
It is also important to remember that not all student loans are the same. Take the time to understand the differences between the variety of loans available such as private loans and direct subsidized loans. There may be loan options with lower interest rates and repayment terms that you didn’t know about before.
Think about the long term. Once you graduate, you need to figure out the best way to repay your loans. As scary as it is to think about, it is crucial to prepare for what happens if you don’t repay your student loans. The implications are severe and can be extremely financially damaging.
It is cardinal to plan for the future and to utilize resources at your disposal to facilitate a life where you can feel financially secure and stable. Speak with a financial professional today and start thinking about your long-term financial goals!
