9 Year Mortgage – Advice for Helping Your Grad Reduce their Debt

9 Year Mortgage – Helping Your Grad Reduce their Debt

Thousands of college students are graduating this month, and a lot of them have a substantial amount of debt to deal with. The poor economy means job prospects are few and far between, and recent grads are finding themselves unemployed or underemployed. Finances can be a hard challenge to deal with at this time in life. 9 Year Mortgage has a few tips for recent grads and their parents to help deal with the stress of student loans.

Get organized. Grads may not have to begin repaying on their loans for 6 months, but those 6 months will go by fast. 9 Year Mortgage suggests making sure they understand what they owe, and avoid making any big purchases that will stretch their tight budget even further when repayment time comes.

Look into repayment options. Federal loans provide 3 options

• Income based repayment: Monthly bill is capped at 15% of discretionary income. For borrowers in public services, the balance may be forgiven after 10 years.
• Graduated repayment: This reduces the standard payment by about a third for the first 2 years, and then raises it every 2 years so that the loan is paid of in 10 years.
• Extended repayment. Grads owing more than $30,000 can stretch repayment up to 25 years for lower payments.

Private Loans have fewer options, but both private and federal loans allow for a deferment period for those who are unemployed.

Offer a hand. While it’s natural to want to help alleviate the stress of your children, don’t put yourself in a financial bind. Make sure you are on track for retirement saving before sending money. There are also other ways to help, rather than dishing out cash. Some options that 9 Year Mortgage  suggests are letting your child live at home and put their ‘rent’ toward the loan balance, or offer to pay off one of the loans, and have them make smaller payments to you, while charging 3% interest. You’ll make more using this strategy than if you were to buy a bond, and your child will benefit from not paying the higher interest rate.

Weigh the Trade-offs. While it might seem appealing to go the income-based route, and make smaller payments, in the long run you could be paying significantly more in interest. 9 Year Mortgage suggests looking into all options before making a decision.

Will The 9 Year Mortgage Plan Work For Me?

 To learn more about 9 Year Mortgage, and to find out if you qualify for the 9 Year Mortgage program.  Find out how soon you could be completely debt free, including your mortgage, with the 9 Year Mortgage Financial Plan. Find out what thousands of satisfied clients already know about taking control of their finances, and using the power of reverse compounding interest to beat the banks at their own game! 9 Year Mortgage representatives are standing by to answer all of your questions about our program, including how soon you will be debt free, and how much money you will save in interest! For more great money-saving ideas visit 9 Year Mortgage on YouTube or go directly to the 9 Year Mortgage Money Saving Minute.  9 Year Mortgage recently launched their Eliminating Debt with 9 Year Mortgage site , which is also full of valuable, free information.