Show 27 - Student Loan Advice for Teachers with Andrew Paulson
In this episode, I talk with Andrew Paulson from studentloanadvice.com about everything teachers need to know about their student loans and loan forgiveness.
1/24/20241 min read
If you have student loans, this may be some of the most important information you can find. Andrew Paulson and I break down the basics of student loans, student loan forgiveness (PSLF and Teacher Loan Forgiveness), Refinancing vs Consolidation, and much more. Here are some key takeaways.
Key Ideas
With federal loan payments starting again, it is important to start paying those immediately. Deferment or forbearance will only increase your overall balance (interest will still accrue), and you won’t be making qualified payments toward loan forgiveness.
As soon as you graduate, it is important to consolidate your loans. This starts the clock toward forgiveness while (most likely) having a $0 payment. Refinancing, on the other hand, is only helpful if you can get a lower interest rate and you plan to pay off your loans without the help of loan forgiveness.
When you have student loans, don’t neglect your other financial goals. Saving for retirement is still important, and it can reduce your student loan payments. If you contribute to a traditional retirement account your taxable income decreases and the amount of money you owe for your income-based repayment plan drops. If you’re interested in this, be sure to consult a professional (like Andrew) on the best approach.