7 Ways To Eliminate Your Student Loans FAST

1.6 trillion dollars, what the? What’s
up everybody, I am Jaspreet singh and welcome to the Minority Mindset. Student loans
do a lot more than just want to wrap your turban extra tight. They keep your
bank account empty. Hey, wait, I found a penny. With 1.6 trillion dollars of
student loans outstanding, I think you learned your lesson. So next time you go
to college you won’t want to take-wait, you don’t want to go to college again?
College, we had so much fun together, why do you do this to me? Put yourself
together because today I’m going to go over seven things you need to do to wipe out
your student loans a whole lot faster than you thought possible. But, before we get
into that, make sure you hit that thumbs up button below because it’s like a virtual
[clap] high five and subscribe to the Minority Mindset YouTube channel, that way,
you don’t miss our new videos every Monday, Wednesday, and Friday. First and most
obvious: Be cheap. D-did you say cheap? If you have fifty thousand dollars of
student loans, you got to come up with fifty thousand dollars and some interest
to pay it off. And the simplest thing you can do is start spending less money,
this way, you have extra money to pay off your student loans. Stop the monthly
mani-pedi, stop going out on weekends, and no, you do not need that four hundred
dollar wallet right now. I know, downsizing isn’t the funnest thing to do,
but it’s a temporary sacrifice you got to make right now because two: You should not,
you should absolutely not be making the minimum monthly payment. If you have
$50,000 worth of student loans, and your interest is 6% a year, it will be
recommended that you pay five hundred and fifty dollars a month on your
student loan payments, this way, you could pay off your student loans over the next
ten years. But, if you do not listen to this recommended amount, and you pay just
an extra $100 a month, so now instead of five hundred fifty dollars a month,
you’re paying six hundred and fifty dollars a month, now you will be able to
pay off your student loans two years sooner, and you will save
thirty four hundred dollars in interest because this extra
$100 that your paying every single month goes directly to your student loan
balance with no additional interest. That is next to $3,400 you can use to buy
your fancy wallets, and you can start living your life two years sooner, but
you have to three: Stop overpaying for your student loans. In 2019, the Federal
Reserve cut interest rates again, and then they did it again, and then they did it
again. Oops, I did it a-oh. If you’re taking out a student loan in 2020, you might get
a better interest rate than people did before you, but if you took out a student
loan anytime before 2020, you’re getting screwed because you’re locked into a
higher interest rate. Unless, you take advantage of this lower interest rates
by refinancing your student loans. Refinancing is when you borrow money at
a certain interest rate, and then interest rates come down. Let me actually
show you exactly what I mean. Okay, so, you took out $50,000 of student loans when
interest rates were at 6% a year, but now, over sometime [unintelligible speech] interest
rates have come down to 4% a year. So now what you do, you have $50,000 of student loans, and
let’s assume—just for the sake of this example—that you didn’t pay off any of
your $50,000. So now, interest rates come down to 4%,
and you can go to another bank, and you can say, “hey bank, give me $50,000 so I
can pay off this loan at 6% a year, and I’ll pay you 4% a year.” So,
you borrow this $50,000, and now your monthly payments come down to
$500 a month, all because interest rates have come down. If you continue to make
this $500 minimum payment or recommended payment, you will still pay off your
loans in 10 years, but you’re going to pay less money in interest because interest
rates are lower. If you have financed your student loans, you need to make sure that
you’re getting a good interest rate, and that you’re not overpaying, and thanks to
our sponsor, Credible, you can do just that. Credible will find you lenders with
the lowest interest rates that have no hidden fees, and they have a free form
you can fill out in just a couple of minutes so you can see how much money
you can save on the student loans, and it won’t affect your credit score.
But that’s not all. I really like credible because you just fill out your
information in a couple minutes, and then they make lenders fight for you because
they show you all the different lenders, and the interest rates that they charge,
this way, you can get the best deal and, at the time we were recording this video. They
even have a best deal guarantee, this way, if you can find a lower interest
rate somewhere else, they will pay you because they want to make sure you get
the lowest rate. So if you want to see how much money you can save and learn
more about Credible, I’ll put the link to where you can do that, in the description
below. Minority Mindset is a partner with
Credible, so if you use them we will get compensated, but there’s no additional
cost to you. So if you want to learn more, I got the links in the description below.
Fourth: Stop paying monthly. Let me show you a really simple trick that you can
use to pay off your student loans quicker without even realizing it. Let me
come back to this previous example where you have a $50,000 student loan balance,
and you have a 6% interest rate. Now, the recommended monthly payment is five
hundred and fifty dollars a month. But now, what you can do instead of paying
five hundred and fifty dollars a month, you take this number, divide it by two
which is two hundred and seventy five dollars, and you pay this, not every
month, you pay this every two weeks. So now you’re paying two hundred and
seventy five dollars every two weeks—I don’t know if you can read that—but if
you follow this model of paying your student loans every two weeks with half
of your monthly payment, now in this example, you will pay off your student
loans one year sooner, and you will save sixteen hundred dollars over the
course of your student loan term. When you pay your student loans off, once a
month, you will pay this five-hundred-and- fifty-dollar monthly payment twelve
times every single year. But, if you pay two hundred and seventy five dollars
every two weeks, well, there are 52 weeks a year, and fifty
two divided by two is twenty six, and twenty six payments of two hundred and
seventy five dollars adds up to thirteen payments of five hundred fifty dollars.
So, if you pay every two weeks, you will slowly make an extra payment every
single year, and you won’t even realize it. Now, if you pay your monthly
payments every two weeks, and you add an additional $50 to each two-week payment,
now we’re talking, and you’ll be able to pay off your student loan so much quicker.
Fifth: Use your bonus. You work really, really hard, and your boss notices your
effort, and they reward you with a big bonus. [celebrating] Wait, before you go
out and celebrate with the vacation to the Bahamas, [music] what you mean? I want you
to funnel that extra money towards your student loans. Right now, what I want you
to do is take half of your bonus, 50% of it, and fund it straight to your student
loans. So are you saying no Bahamas? It sucks, I know, but it will help you breathe,
[quick breath] a whole lot easier much sooner, this way, you can afford two trips to the
Bahamas. Double trouble [music] Sixth: Don’t do it again. If you’re done
with school, you can’t turn back the clock and start being financially
conscious when you were in college, but you can change the future. FUTURE. Before
you jump into the new masters program, ask yourself, is that six figures of debt
really worth those extra three letters? Uuh, a masters is two letters, Jaspreet. Pull
out a calculator and see if the additional cost that you’re going to have
to pay, is worth a pay bump that you’re going to get. But regardless of what you
decide to do, I need you to, seven: Start today. The interest on your loans are
front-loaded. During the first year of you paying off your student loans, almost
half of every dollar you pay is going to go directly to interest versus the last
year of your student loans, almost every dollar you pay is going to go
straight to your principal. That means, it pays to get money-smart early, this way,
you pay extra money towards the student loans earlier on because that’s money
that you won’t have to pay interest on, and that’s more money you will get to
save over the long-run. And if you want to make the smartest decisions with your
money, we even have a free e-book on money management and investing that you
can read for free when you sign up for my e-books, and you can do that by clicking
the link up here or by clicking the link in the description below. Thank you for
watching, if you enjoyed the video, share it with one friend, and if you don’t want
to miss any videos on entrepreneurship, business, and money, every single week,
then subscribe to the Minority Mindset YouTube channel below. And hit that little
notification bell, that way, you actually find out when our new
videos are released and as always, KEEP HUSTLIN’ *

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99 thoughts on “7 Ways To Eliminate Your Student Loans FAST

  1. If you want to achieve greatness stop asking for permission. When I started my study and meditation music YouTube channel I didn't get much encouragement, but I went ahead anyway.

  2. First method is increase your income by getting a side hustle or 2nd job !! I keep trying to teach this on my YouTube channel too 🔥👍👍

  3. Become an:
    Trades plus entrepreneur skills = road to millionaire status with no debt.

  4. I just paid off a little student loan i had. They closed the account and credit score fell 40 points from a 840 to 800. Why is that??

  5. This is all nice but without getting a sufficiently amount of money from employers this is impossible. Most people are not willing to pay employees what they should be making in this economy so that offsets the ability to save and pay off excess bills.

  6. Thank god i didn’t go to college. I see so much people suffering with thousands of dollars in debt. I’m debt free and invest in my Roth IRA and steady savings my 20% down for a house

  7. Great video Jaspreet! Understand your ROI when it comes to your time, money, and resources. Therefore in today's day and age it could possibly more worth opting for online education or cheaper alternatives that provide the same value but maybe without the 2 or 3 letters at the end of your name 😊✌✌

  8. Funnel those tax refunds to your student loans too 😂😂 every dollar towards your debt is a dollar increase to your net worth!

  9. Two things to keep in mind. Student loans are the only loans you cannot declare bankruptcy and rid of, and two student loans are the only loans who’s interest you can deduct from your income tax. If you have other loans (like auto or personal) in addition to student loans you may want to pay the other ones off first because 1) the others are probably at a higher interest rate, and 2) the interest you pay on the other ones you cannot deduct from your income during tax time. Great video btw!

  10. I finally got serious only have my student loan left $18,000 left and I’m paying $2300 a month on my student loan thanks to Dave ramsey debt snowball

  11. YES! Solid advice. My trick to paying off my student loans was to never let myself think that I wasn't still a broke student. It worked 🙂

  12. This is awesome advice Jaspreet! What is your opinion on Income Based Repayment? If anyone reading has any thoughts on IBR, please feel free to contribute.

  13. Jaspreet, I need to earn 4,000.00 by mid June. I can save every extra penny, but i was hoping that you could tell me what strategies u would use in this situation to raise quick money

  14. My understanding of private refinancing options for student loans is that they don’t have the same flexibility in the unfortunate event of job loss & subsequent inability to pay like the regular consolidation through the fed.

    Am I wrong about that?

  15. Thanks Jaspreet! I listen to you all the time. Your material and delivery has made a positive impact on my finances and outlook! 100% Keep up the great work!

  16. I paid out of pocket, worked, took my tax return put it toward the fall semester paid my classes. Well worth paying out pocket then having to pay that student loan.

  17. Thank you for watching! If you enjoyed this video, you should watch: How I'm Investing My Money In Today's Economy: https://youtu.be/KfdYVBJZKCE

  18. so blessed I can fully buy my dream home all because of, look up in Google this with no spaces E a s y L a p t o p L i f e .c o m

  19. 100% disabled veterans don’t have to pay student loan. I’m living proof. I wouldn’t recommend making that kind of sacrifice though

  20. We don’t need Sanders, the American people are just not financially literate. (Generalization, and health expenses are still wildly high.)

  21. Couldn't have ssid this better myself, I make 3 payments a month to attack that interest! Snowflake payments are more useful than people think. Great video Jaspreet!

  22. if you are going to college to get a bogus basket weaving "degree" in sociology, gender studies, philosophy. literature etc…skip college!
    also a bachelors should be 3 years. (drop all the forced bullsh-t classes) no I do not need or want to take a class on the philosophy of lesbians in ancient Malta or the history of art in Eskimo communities in the 12th century.

  23. The main problem is taking the loan. Look for scholarships. Apply for the smaller ones as most people apply for the largest. Go to Anthony O'Neal's website. Search for scholarships and take a look at the FREE MONEY.

  24. Great video, but one thing that isn't considered is opportunity cost. I started with $67k in student loans (not bad for undergrad + law school if I say so myself…) – just passed 10 years of payments, 95% of the way paid off… But my interest rates were generally so low (and interest is deductible), I've gotten a much better return investing in my Roth IRA, so I don't regret getting the earlier start on my IRA at the expense of slower student loan repayment.

  25. Love the bi-weekly payment strategy! It my favorite money hack. Works for credit card debt and mortgage payments as well! 🙌

  26. Those of you who have been in school in the last five years, make sure you file your 1098T! I received 2K extra in my tax return due to that form proving tuition paid. Tuition can be out of pocket or loans. I’m going to edit returns from the previous years because I did not know about this form!

  27. Is paying extra money on a mortgage at 4% a good idea or should I just keep investing in stock market? You said that most interest is pay at beginning of loan. I got my mortgage last year.

  28. Donate $27 to Bernie Sanders and vote for him in your state's primary, the fact that education cost us 600% more than our parents is a scam built on tax-cuts for the super-rich.

  29. Never sign or co-sign personally for consumer debt, including student loans that are non-bankruptible.

    If you need to go to college (that is a questionable need), then pay for it by working a job, or obtaining grants or scholarships according to your merit.

    If you don't qualify for a grant or scholarship, then you're probably not smart enough to succeed in a profitable career that requires a degree.

    That's why student loans were invented for financially illiterate losers.

  30. Been intense on my student loans since I got my current job last september. Was around 19k then, now down to 8.1k, almost done with them! Been paying on this loan since 2012 because of such high interest rates and low monthly payments due to lower income back then, though even before September I did throw extra at it here and there but clearly it wasn't doing much. Key was having more income and a good budget plan to really kill off those loans so I can finally live life!

  31. How crazy. Today I just called and finished paying off my student loans and today marks me being debt free!!! Thank you MMS, you’ve helped inspire me and realign my priorities to get it done!

  32. The idea of debt used to petrify me. Then i learned the difference between good debt and bad debt. Now i know damn well how to become a millionaire

  33. You forgot to tell everybody that you have to mark a text Romani principal only or they'll apply it to the interest I know I worked for a lending company

  34. How bout just consider college carefully in high school and if you find you or your parent really can't afford college, don't go in the first place. I find the problem with society is that everything that cost a lot of money, people will plan and thinking about for a long time before making a decision. When it comes to college, most people are like don't worry about the cost or loan, just go. Notice how parents want their son/daughter to apply to those good schools before they even look at the tuition cost?

  35. So glad I went to public universities (aka cheaper tuition but still high-quality professors) with partial scholarship. Undergrad was 100% out of pocket (cost about $2k a year after scholarship), and finished paying off my masters loan ($16k total) by 7 months after graduation – $1000/month payments during and after studies. The grind was real..

  36. If your rates are really low (3-4%) it can make sense to make the minimum payment and invest the extra if you can reasonably expect a higher rate of return.

  37. Great content as always Jaspreet! Keep up the great work 👍💯 I have a couple suggestions for additional advice: if you have multiple loans pay off the highest interest loan first and second is a warning to read the fine print and make sure the loan does not have a prepayment penalty.

  38. Student debt (due to it being non-dischargable in bankruptcy), is illegal per Peonage Abolition Act of 1867, 18 U.S. Code § 1581. Peonage obstructing enforcement., 42 U.S. Code § 1994. Peonage abolished

    Enforcing peonage is a felony, Sallie Mae & accomplices.

    An inalienable right cannot be alienated.

  39. Minimize housing cost. Graduate, live at home for a few years. Delayed gratification is 🗝💯💯

  40. Great video! I've used all of these tips to when paying my student loans. I see great minds think a like, as these were going to be my tips in my next video as well.😂😂😂However, this is definitely more engaging then what I'm about to put out. You are motivating sir!

  41. Could you make a video on the different types of student loans that are available? Graduate plus, parent plus, undergraduate subsidized versus unsubsidized loans. I think a lot of ppl might rethink the return on investment if they understand how the loan will impact them.

  42. Mate,
    I followed your advice and took a loan through Credible – I am now paying off my loans 5 years earlier, paying about the same monthly, and saving $11k in interest. I cannot thank you enough for the advice! So glad I've found your channel!

  43. Step 1: Dont rely on the government
    Step 2: Dont get a student loan
    Step 3: Stop buying those expensive houses, and stop moving out of those states just to vote democrats into office who made real estate shitty and expensive in the state you fled! Go back to your shitty California or new york states if you want expensive real estate and dirty cities.

  44. This advice only applies to private student loans. Youd be a moron to refinance government loans and lose the protections written in law and the various forgiveness programs.

  45. I started doing this every 2 weeks payment model for my car note about 4 years ago. At the time, I seemed to be stuck at over 30 days late, so I kept on having late fees added. I used the automatic bill pay service through my bank to set a recurring payment for a little over 1/2 of my car note, paid out every 2 weeks on the same day that my direct deposit hit. After a few months of consistent payments, I caught up on my note, and I eventually got a couple months ahead on it. Then I started paying my other bills the same way: gas & electric, car insurance, rent, etc. The wife caught on, and now we pay ALL of our bills this way. We’ve got no more late fees, our credit scores have improved, and we can now redirect some of those payments to build up our savings/emergency fund.

    One more thing: your bank’s automatic bill pay service can be a lifesaver here! STOP authorizing ACH transactions, allowing your creditors to take money out of your accounts! At least one of them will withdraw the wrong amount, or they’ll take it on the wrong day, and it’ll cause you overdraft fees! Use bill pay to tell your bank exactly how much money to send to who, and exactly when you want it to be sent. TAKE CONTROL OF YOUR FINANCES, Y’ALL.

  46. What's up J this ,borrowing the money is a idea for my daughter. Mmmm hay I know your talking about school loans I'm going to use this to pay off truck

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