Are you paying off your student loan debt?

Michael Benjamin

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As a debt free individual, I’ve been getting asked how to proceed in terms of student loan debt owed, and I wanted to discuss it. Student loan debt is a very hot topic right now for anyone in the financial education space. Well, let me correct myself: it’s a very hot topic globally right now whether you’re a financial coach or a common citizen or consumer. I’m curious to know your own take on this topic. Please comment below and let me know how you feel about moving forward with your own student loans.

Student loans do not come in a one-size fits all situation, and that’s been more apparent to me as I’ve talked to clients and prospective clients about their own specific situation. Some students have federal loans, while other students have private loans, and some have both. And if we want to get even more specific we can get into subsidized, unsubsidized, private and Parent PLUS loans. Student loan debt is not a one-size fits all topic, but there’s a common discussion surrounding how to proceed forward with it.

Even though student loan debt forgiveness has been a discussion, I personally understand the importance of taking accountability for one’s actions. This means I understand the stipulation of borrowers paying back what they borrowed. However, my empathetic nature sees both sides in the sense that I want student loan debt forgiveness for those that have student loans, because even though I personally conquered it, I know how serious of a discussion it is. Granted, some individuals are irresponsible with their money and I can understand how it can be viewed as an irresponsible act to not pay them back, but that’s my holistic view on the topic. While I understand people that will turn their back to their student loan debt and not attempt to pay them back, I also understand those that want to get them off their back and pay them off once and for all. To be honest, right now is that great opportunity to seize the day and make those payments.

I also have had conversations with certain people claiming they have the money to pay it all off, but are waiting to see what the Biden administration will do moving forward. I also respect that, and would personally do the same, because if you pay everything off and then there's forgiveness, you seemingly paid it off for nothing.

But is that the reality?

Nothing is truly FREE, and I would think that with student loan debt forgiveness, there would be tax stipulations associated with them. I’m constantly educating myself on these topics to stay current with what’s going on and the tips I give clients. I say that to say I’m not perfect and don’t know everything.

What would I do?

Additionally, if I still had student loans, I would invest a portion of it. I had a conversation today with a young lady asking me if she should turn her back to her student loan debt and forget about it once and for all while she goes to school or attack them. My coaching and philosophies may come off as controversial at times, but I can only be authentic and give my advice based on my experiences and reality.

I always advise to ultimately perform the action that you can comfortably sleep with at night. If running away from my student loan debt made me feel good about myself, I would coach myself about the stipulations associated with that, but at the end of the day you can’t make someone do something, so I would go to sleep at night comfortably knowing I gave the advice associated with the stipulations.

I would invest anywhere from 40-60% of what I had towards paying off my student loan debt. Until I heard an answer from the administration, I would invest into long term trading options and contribute 5-10% of that 40-60% towards quick trades such as options or stocks for day trades. Understand that this is risky, but my one year debt free journey was a risk in itself because I didn’t have an emergency fund that exceeded $1,000. At the end of the day, I think it’s important to consume information from different resources and learn, but you ultimately have to make a decision for yourself about how you will proceed with that information and how it will apply to your own specific situation. As a grown man or a grown woman, no one can force you to do anything that you don’t already want to do.

I’m curious to know how you are navigating these student loan debt streets as we figure out what the administration plans to do. Please leave a comment below and let me know if you’re paying off your student loan debt. Whether you’re debt free or swimming in student loan debt like your name is Michael Phelps, I’m still curious to understand your input and reasoning for how you’re proceeding. Thank you!

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I was blessed to pay off my student loans within one year back when I was 23-years-old so my mission is to help you pay off your student loans quickly through taking control of your relationship with money, while helping you with strategies and tips to pay off your debt quickly.

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