Student loans: getting out of debt (1:58)

Video Summary: 

Student loans can be a major burden. But there are smart ways to manage your debt, pay off loans faster, and grow your financial literacy.

Narrator:
So how long will it take the average person to pay off a four-year degree? What do you think?

Male:
Umm…I don’t know, probably like—

Male:
10 to 15 years.

Male:
I bet it’s crazy.

Female:
25 years.

Male:
I would probably say, 20 to 30 years.

Male:
Woo!

Male:
Wow. Wow.

Female:
Seems like a lot. [Laughs] Seems like my whole life.

Male:
So, the way I do it is, like, I pay the minimum payment and then, like, I’ll kind of gather up money on the side in my savings. And then I’ll pay off a lump here, a lump there.

Male:
I set up a 50/30/20 calculator already in terms of my income next year and how to position that so about 20 percent of it ends in savings, and also, aggressively paying back the loans quicker than expected.

Male:
I’ve started my own Excel document. I put together all my expenses in it.

Female:
First jump, as soon as you can, start figuring out when you’re going to start paying them, how you’re going to pay them, and get it kind of done and over with.

Male:
Yeah, I lived with my parents. [Laughs] That was, um, pretty much the strategy I took to pay off my student loans.

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