When you make your way through college and eventually graduate, you will start getting notifications from your student loan company or companies. It’s essential to meet with an accountant in Overland Park to plan a strategy for the best way for you to pay back your debts. This may seem straightforward, but it is somewhat complex and varies significantly from person to person on what the best strategy is based on your situation. The first step is to gather all the facts like: what loans you have and all the information about payback, interest rates, and amounts of the loans. All of this information is very important and will help you formulate your repayment options with an accountant in Overland Park. There are two primary plans of attack when paying off student loans according to The Kiplinger which are:
- If you pursue the forgiveness option for those that qualify or an Income-Driven Replacement plan, then paying as little as possible to maximize the amount that can be forgiven is a great strategy. Lowering your monthly payment is a great idea if you qualify for this option.
- If you want to avoid added interest you can pay off your loans ahead of schedule. Interest rates can be alarmingly high for student loans. By paying off your student loans as fast as possible, you can save thousands of dollars in accumulated interest over the life of your loan.
- Refinancing your student loans so that they are on a lower interest rate plan and on one bill is an option that might work for your loan payoff plan with the help of an accountant in Overland Park. It’s important to note that once you refinance, your loan is no longer available for Income-Driven Replacement plans (IDR) or loan forgiveness plans.
There are so many options available to new graduates when it comes to paying off their student loans. And the consequences of poor planning can cost you thousands of dollars more than what you need to pay. Taking the time to meet with an accounting firm in Overland Park is well worth the minimal short-term investment to make sure you have a plan in place.
If you’re looking for a trusted accounting firm in Overland Park, travel just 15 minutes south to Louisburg and you’ll find Pro 31 Tax & Accounting. Our group of professionals understands the struggles that come with being a recent graduate and how you can feel overwhelmed by the process of paying back student loans. We can help you create the best plan based on your loans to make sure you save the most amount of money over the life of your loan. Give us a call at (913) 837-3131 or contact us online for more information about our services.