Paying bills in addition to student loans is difficult to do on any career’s starting salary. Keeping up with all those payments seems challenging enough. Saving for retirement on top of that may seem nearly impossible but it can be done.
Student Loan Solutions: Horace Mann can help explain ways you may be able to remove or reduce you student loan payments. Then you can redirect any monthly savings to your future. We offer a suite of solutions to help educators manage student loan debt and prepare for future financial success.
Here’s an example of how it can work: A 23 year old kindergarten teacher in her second year in the classroom with $35,000 in student loan debt learns that she qualifies for an income-driven repayment plan. Under an income-driven repayment plan, lower levels of income equate to lower monthly payments. As a result, the teacher is able to reduce her monthly payment by more than $150, a savings she redirects toward her future by starting a retirement savings program.
With a monthly investment of $150, by the time teacher is reaches the age of 63 and is ready to retire, she could have accumulated more than $485,000 simply by redirecting he student loan savings into a retirement savings program.
Please keep in mind that generally, when you make lower payments or extend your repayment period, you will pay more in interest over time. But your Horace Mann representative can also help you explore whether you qualify for federal forgiveness programs to remove some or all of your debt, plus share loan estimator tools that can help you decide your best course of action.
Source: Jim Yale, Vice President Industry Relations, Horace Mann