Many predict that the long-lasting effects of student debt will impact the housing industry, as well as how Americans finance retirement.
The Federal Reserve Board of Washington, D.C. found that an increase in student debt has led to a decrease in home ownership, and a study from NerdWallet predicts that students who graduated from college in 2015 will have to delay retirement until the age of 75, in part because of the increasing burden of student debt.
Fortunately, there are other repayment plans that allow for borrowers to pay off their loans over a longer period of time. The Extended Repayment Plan, for example, gives borrowers up to 25 years to pay off their loans and allows them to choose for their payments to be either fixed or graduated.
Before making decisions about financing a degree, students should plan out how long it will take for them to pay off their loans. By staying organized, taking into account how much money they expect to make and keeping an eye on interest rates, graduates can make sure they pay off their loans as efficiently as possible.
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