It’s nearing the end of January and research shows that by next week, 80 percent of Americans will have already given up on their New Year’s resolution. But while hopping on the treadmill five times a week may seem like a tall task, taking control of your student debt shouldn’t be.
Now more than ever, college graduates are often saddled with debt that can stick with them for decades—causing them to delay personal and financial goals such as getting married, buying a home, and saving for retirement. Americans now have more than $1.4 trillion in student loan debt, which exceeds the amount of credit card debt in the U.S. And in Indiana, the average college graduate carries more than $29,000 in student loans upon leaving school.
High interest rates and monthly payments can sometimes consume a sizable portion of a millennials budget, limiting their ability to travel, move to a new apartment, or otherwise spend their income on important goods and services.
So although exercising more may top the year’s most popular New Year’s resolutions, we know student loans are at the top of many young Hoosier’s minds in 2018. The good news is that Hoosiers have readily available resources that can help them manage their student debt. One such resource is INvestEd, an Indianapolis-based non-profit that works with recent grads, parents, and students to better plan and pay for college. On Tuesday, January 30th, we’ll be showing Hoosiers how refinancing can help relieve your debt burden at a Refi Happy Hour on Mass Ave.
Refinancing can be key
Whether you’re looking to decrease your interest rate, lower your monthly payments, or extend the life of your loan, refinancing is one option that’s worth exploring for many college graduates looking to save money.
Here’s an example of how it could work: if you were to pay 8.5 percent on a 10-year student loan of $35,000, reducing your rate by just one percentage point and extending your loan term by five years would drop your monthly payments by $110. That’s $110 that could be invested in a 401(k), a new car, a security deposit for an apartment, or a down payment on a new home.
Refinancing isn’t the right choice for everyone, but it can serve as a meaningful way for many borrowers to manage their debt burden. For example, one study found that Indiana residents who refinance save an average of $1,336 over the life of their loan.
For those looking to refinance, students and families have many options to choose from, and our goal at INvestEd is to help make that process as easy, effective, and seamless as possible.
What is INvestEd?
Authorized in 1980 by the Indiana General Assembly, INvestEd is an Indianapolis-based nonprofit that’s has been has been helping Hoosier families access and fund education for over 35 years. From our refinancing loan option—open only to Indiana residents—to our student tuition loans, and the more than 400 financial aid events we hold annually at high schools across the state, INvestEd is driven by a mission to put students first. We work directly with over 6,000 students and families each year to figure out how Hoosiers can help finance their college degree with the least amount of debt.
Don’t stress—we’re here to help
Many Hoosiers might put off refinancing because the process can appear to be overwhelming and complex. That’s why INvestEd has a trusted team of experts who can advise Hoosiers on how to navigate college costs and manage their student loans.
And for those who prefer to research on the web, our INvestEd Student Loan Marketplace is a tool that allows students and families to compare personalized loan rates in real-time, no different than how one might shop for car insurance online.
Providing loan solutions for Hoosiers, by Hoosiers
This month, INvestEd is kicking off the New Year by hosting Indiana College Refi Week starting January 29th to show how refinancing can help Hoosiers secure lower interest rates, extend the life of their loan, and ultimately save money.
During Refi Week, you can call our team of financial professionals for personal support, or meet us in person on Tuesday, January 30th, when we’re hosting a Student Loan Refi Happy Hour at Mass Ave’s newest co-working space, Industrious Indianapolis. Our expert team will be on-hand at the event to answer all of your questions about how refinancing works and if it’s a good option for you. And for those ready to refinance, we’ll help you compare rates in minutes and walk you through the process step-by-step.
A New Year brings new hopes and new resolutions, but it may also bring new fears. Our hope is that student debt can be crossed off that final list for many Hoosiers in 2018.
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