Bruce Mesnekoff’s View about Hillary Clinton recently released a student loan forgiveness plan

1. HeyBruce Mesnekoff,Canwe talk andknow yourviewaboutHillaryClinton’sStudent Loanforgivenessplan, What doyouthinkaboutyou, Howitwill reformour industry? Howour students getbenefits from it. As perour discuss on Phone calltoStudent LoanHelpCenter,CEO, Mr.BruceMesneoffSaid RefinancingOfLoanmustbe partof any discussionabout student loans. Interestonloansis aparticularlyhugeconcern.Formany people, refinancingis allaboutfindinga lower interest rate. A lower interestrateoftenmeansthat youwill payout less moneyin thelong-run. However, inorderforone toget a lower interestratethroughrefinancingwith a privatecompany, itoftenmeans givingupsomegovernment benefitslike certain forbearanceoptions,income-based repaymentoptions, andloanforgiveness programs Current IndustryandLoanconditionsarenotgood, but yeswhatever Hillarysuggests Itsgoodsofarbecause student loandebtis fast becomingthe next financialcrisis in the UnitedStatesandwill likely receive someattentionat theDemocratic National Conventionthatkicksoffin Philadelphia this week. There areover43millionAmericanslivingwith student loandebt whoowe atotal of roughly$1.26 trillion. Fortheclassof2016, theaverage graduate left school loadedwith$37,172of student loandebt. It has reacheda pointwhere studentsandparentshave acceptedthe fact thatwrapped upin that collegediploma isa financially suffocatingamount ofstudent debt.Upongraduation, the average monthly student loanpayment totalsaround$350 monthlyor$4,200annually.Compare thesenumbers tothe averagenewgraduate salaryof around$50,000 andonemaybe inclinedtowritethisoff asanagging, albeitmanageable, burden.For instance,engineers and computerscience majorswill likely earn morethan$50,000ayear. However, educationandhumanitiesmajorsoften average closer to $35,000a year. A$4,200annual bill ona $35,000income over30 years cancompletelystifle ayoungprofessional’s financialgrowth. BruceMesnekoff’s Friend andPartnerJeff HardysaidIworkwith a lotofDoctors,teachersanddentists who couldpotentially qualifyfor thePublic ServiceLoanForgivenessProgramthat couldforgive studentloans tax-freeafter orupto120 qualifyingpayments.However,oncethey refinance,they losethe abilitytoqualifyforthe program.”Byrefinancing, youcouldalso losetheoptionto havethe debt forgivenupon yourdeath.Thiswouldpotentiallytransferyour student loanburdentoyour family. However, loweringyourinterestratesbyrefinancingcanoffertremendous benefits. Youcouldcutyour monthly payments inhalf,knockoff20-30yearsof payments, andreducetotal out-of-pocketpaymentsby tensofthousandsof dollars just byreducingyour interestratebyupto3%. Before yourefinance or applytoforgiveness plantogeta lower rate,make sure youshoparounda bit betweencompanies. Rates andrepaymentoptions will vary,and youmaynot alwaysqualifyforthe advertised interestrates.Bruce Mesnekoffpointsout that,“The initialallure isthat private companies areofferinglowinterest ratesfor refinancingstudent loans. But, theadvertisedratesoften reflectthe interestratesfor5or10- year repaymentplans, notthe longer15or20-yearor25 yearsplans thatmostpeoplecanaffordfor monthly payments. Theseshorterplans offer lower interestratesbut higher monthly payments,whichcanmake it difficulttocontribute toa retirement planor save uptobuy a house.”It is imperativethat

2. youlook at avarietyof companies andassesswhether youcanaffordthe newmonthly payment beforedecidingtorefinance. Refinancingcaneven beadecentway toconsolidate loans.rather thancreating threeor four completelydifferentpaymentsevery month, youmayconsolidatethemintoonepayment. With some student loanratesnear8 and9 percent,refinancingseems like a no-brainer. If youcan refinancefrom9percent to5or4percent, youcanlikelyreduceyourmonthly payment and substantiallyreducethe numberofyearsforrepayment. However,make sure youshoparoundandunderstandthe repaymentterms andany benefitsyoumight begivingupbyrefinancingfederal loans with a private company. Ifyouhavea financialadvisor, talktothemaboutyourstudent loans.Whilethegovernmentmight providesome additional relief inthe future for student loans,youshouldstill look aroundatthe repaymentandrefinancingoptions available toyou. There are ways toimproveyour student loansituationnow, but always remember toweighthebenefitsofrefinancingagainstthe risksbeforemakinga decision. Althoughstudent debt reform isgetting alotofattention, plans likeHillaryClinton’s containsomeavenuesforstudent debt relief,howeverit doesn'tseem that refinancingaloneare goingtobeenough tomendthe issue. Basicchangescanstillbe requiredat thecollegial leveltocurbthe staggeringgrowthof student debt. ClicktosubscribeofficialYouTubeChannelofBruceMesnekoffFollowusonBruce MesnekoffTwitter LikeusonFacebookOfficialBruce Mesnekoff