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,
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HUSTLIN' *