Interview: 5 Tips for Gen Y’ers to Organize Student Debt

Kare 11 - 5 Tips for Gen Y'ers to Organize Student Debt - Sophia Bera, January 8, 2015.

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Here's a transcript from the Kare 11 interview with Diana Pierce.

Americans are looking at a student-loan debt crisis. At $1.2 trillion, some financial analysts say that the student-debt bubble will rival the real estate bubble from 2007 and 2008.

So how do we head off a personal financial crisis with student debt?

Education is part of the key and KARE 11 News @4 guest, Sophia Bera, founder of Gen Y Planning, shared 5 tips that work for anyone struggling with student debt.

Tip 1: Understand the details of your student loans. Are they private or public? What are the interest rates?

Tip 2: If your loans are public, there are many student loan repayment options available such as Pay As You Earn or Income Based Repayment. Under these programs you'll pay a percentage of your income towards your student loan debt.

Tip 3: Use to track your student loans.

Tip 4: If you work in the public sector or for a nonprofit, check to see if you qualify for Public Service Loan Forgiveness in which the balance of your loans can be forgiven after 10 years.

Tip 5: Make a plan to pay off your student loan debt. I often recommend paying off the highest rate loan first. PLUS loans have a 7.9% interest rate, and many student loans are at 6.8%. That interest can really add up over time.

For more information, head to Gen Y Planning.