Plan and Execute: Minimizing Time to Debt Elimination

Student debt has become one of the more widely discussed matters among economists, parents, government officials and others. From difficulties with paying off student loans to having an adverse impact on the overall financial condition of the United States, this has been a hot topic for all, and one that appears to be stimulating conversation today. Because of how much effort has gone into analyzing these matters, best practices have begun to arise. 

If families are planning to borrow as part of their college funding strategy, they need to go into the application and approval process with the right knowledge at hand. Should they not focus on the best practices of college funding, they will be inherently more likely to see their students' debt linger for years and, in some cases, even more than a decade. A college funding expert can help guide parents and students through the highly complex and challenging lending landscape. 

"One client recently paid off her federal loans in just one year."

Case in point
One recent Smart Track​​TM client graduated from college in 2015 and paid off the entirety of her Federal Student Loans within one year after graduation. Although this might seem impossible or unlikely, or as though that student did not need to take much out in the first place, that is simply not the case. This student was able to eliminate her debt in such a timely fashion because of the intelligent approach her, her parents and her Smart Track​TM college funding expert took. 

Most families will be somewhat confused or anxious when going through the lending process, and few will have the experience in debt elimination necessary to pay off loans as quickly as possible. There are plenty of strategies to do so, but only one will be the 'right' one for each individual student and family. Having a college funding expert to guide the strategy and ensure it perfectly matches the needs and capabilities of the student is invaluable for this reason and many others. 

Because interest rates, payback periods, penalties and deferred options will all come into play when repaying these debts, parents who are considering borrowing to fund their students' college education need to know what they are getting themselves into. They also need to clearly understand how all of these moving parts work, and what opportunities are involved related to the speedy and comfortable repayment of debts.

In this particular case, our Smart TrackTM college funding expert began working with the client while she was still in high school, and had a plan to pay off the loans before the student even began her freshman year. The expert suggested the student pay the interest off of the college loans while still in the process of completing her coursework because the payments were low, so nothing accrued on top of the core debt. 

This allowed her and her family to complete all of her Federal Student Loan payments within just a year, freeing her up financially more quickly than many others who attended school around the same time. 

A sound financial plan can help students pay off college debts more quickly. A sound financial plan can help students pay off college debts more quickly.

The value of an expert
No family needs to go into the stressful and complexity-ridden process of college funding blindly, as a Smart TrackTM expert is always waiting to help. The above story exemplifies the true value and power of having a debt repayment plan and executing it before beginning an undergraduate career. The lack of such strategy and action could have made the loans linger for a decade or more, literally quadrupling the payback amount in the process. 

What is your plan to pay for college? If borrowing is involved, register for your free membership to Smart TrackTM College Funding today!