Download - Managing Student Loan Debt. PICPA The Pennsylvania Institute of Certified Public Accountants PICPA is a professional association of more than 22,000 CPAs

Managing Student

Loan Debt

Managing Student Loan Debt

PICPAThe Pennsylvania Institute of Certified Public Accountants

PICPA is a professional association of more than 22,000 CPAs working together to improve the profession and serve the public interest.


Know What You OweImportant information to know about your loan(s):• How much is the principle?• How much is the interest?• How much is the monthly payment?


Know Who You OweImportant information to know about your loan(s):• Are they federal or private?– Slightly different rules and powers apply

to federal and private lenders.


Debt Reduction First step in debt reduction is making a budget!• Calculate how much you make• Record how much you spend• See where you can save money• Create a goal to pay down student loan debt


Pay Off Sooner• Always pay the minimum, try to pay more. • Set monthly payments as high as you can

afford to pay off quicker. • You’ll save on interest and end up paying less

overall!


Pay Off Sooner• Pay the loan with the highest interest rate

off first.• Look into consolidation.• Non-traditional students may be able to get

a home-equity line of credit.


Struggling to PayIf you’re struggling to make your student loan payments, don’t stop paying them! This will hurt your credit, and may have serious consequences.There are other options to help you manage your loan payments.


Struggling to Pay• Repayment Options –Standard plan may not

be the best fit• Deferment or Forbearance—May be able to

put loan payments on hold depending on your situation

• Cancellation of Debt– Can be granted in very select circumstances


Note about BankruptcyPersonal bankruptcy will (usually) not get rid of student loan debt. Need to get a cancellation of debt from the lender to forgive the debt.


Resources• PICPA’s College Savings page

www.picpa.org/collegesavings • 360 Degrees of Financial Literacy

www.360financialliteracy.org • U.S. Department of Education

www.college.gov

http://www.picpa.org/collegesavings

http://www.360financialliteracy.org/

http://www.college.gov/


Questions?

Download - Managing Student Loan Debt. PICPA The Pennsylvania Institute of Certified Public Accountants PICPA is a professional association of more than 22,000 CPAs

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