Why You Shouldn't Ignore Your Student Loans! 🎓💸

Assalamu Alaikum girlie! 🌸

Student loans—just reading those words can send shivers down your spine, right? 😬 But let me tell you something: avoiding your loans doesn’t make them go away.

Today, I want to share why it’s so important to tackle your student loans head-on and how much it can benefit your future.

Here’s what I’ll cover:

• Facts & Shocking states about student loans 📊 

• Why ignoring your loans costs more in the long run 💸

• How to pay off your loans 💪

Let’s dive right in! 📚

Facts & Stats About Student Loans

Did you know that over 42 million Americans carry federal student loan debt? And as of 2024, the total U.S. student loan debt stands at ~ $1.73 trillion! 😱 

• Student loans are one of the U.S. government’s biggest assets yet a huge liability for millions of Americans. (No conspiracies here 🙃)

• The average student loan payment is $513/ month

• 55% - 57% of college students have student loans.

• It takes borrowers ~20yrs on average to pay off their student loans.

• Less than 1% of eligible applicants actually benefit from the Public Student Loan Forgiveness program.

[sources: educationdata.org & Forbes ]

Why Ignoring Your Loans Cost You More💸

It might be tempting to ignore those loan statements, but let’s be real: student loans don’t just disappear.

One more fact, federal student loans aren’t dismissed even if you file for bankruptcy!

The longer you put off paying them, the more interest you accumulate, which means you’ll end up paying way more than what you initially borrowed.

While as Muslims we are supposed to stay away from interest, borrowers pay up to $27,000 in interest across 20yrs of making payments.

Interest is like that silent villain that works behind the scenes, making your balance grow year after year. Let’s stop that from happening!

Here are 3-Steps to Pay that Debt Off! ⛓

1. Start by calling your creditors, get the facts right about your loan: who has the loan? What is the total balance? What are the minimum payments? etc.

2. Create a plan and start tacking them. Start by paying off your smallest loan first while continuing to make minimum payments on your larger ones.

3. Get accountability and celebrate small wins: it might feel like a mountain to climb but every small victory counts!

   • This helps you build momentum and motivation.

If you choose another debt repayment method, STICK to it and keep pushing forward!

Imagine a life where you don’t have student loan payments hanging over your head every month.

You could save, invest, or even buy that home you’ve been dreaming of.

Financial freedom doesn’t just open up opportunities—it gives you peace of mind. You deserve to live debt-free and start building wealth for yourself and your family!

At the end of the day, facing your student loans is one of the best financial decisions you can make. Don’t let debt affect your stability—take charge and pay it off! 💪

Keep on going,

Fatimah ✨ 

Founder, Finance Girlie