Summer is a time when many people travel, though this year has created new or modified travel arrangements. Many people have a goal to see the world, but according to Bankrate, nearly 60% of people don’t take a vacation because they can’t afford it.
According to the same study by Bankrate the average cost of a summer vacation is $1,979 per person. This expense adds up quickly, especially for a family. Keep in mind this is an average cost so depending on where you live and where you want to travel to your costs could be more or could be much less. There are also travel hacks to further reduce this expense, such as using points or miles from credit card rewards, traveling with friends or family and renting condos with full kitchens to save on restaurant costs.
One of the factors in not being able to afford a vacation is student loans. Student loans are often thought to impact young adults, but in reality, adults of all ages are impacted. Part of this is because adults take out loans, such as the Parent PLUS loan, to help their children through school or they go back to college themselves. According to Credible the average student loan payment is $393 per month. If you are a couple, who both have student loans that brings your average monthly payment to $786 or $9,432 annually. It’s payments such as this that contribute to the 60% of Americans not being able to afford a vacation.
We love to help people achieve their goals, so if you feel held back by your student loans there are likely options available to help reduce your stress. For instance, if you have federal student loans and work for a qualifying not for profit company you might be eligible for Public Service Loan Forgiveness. If you elect to go for Public Service Loan Forgiveness (PSLF) an income driven repayment plan would be selected. This plan tends to lower your monthly payment and after 120 qualifying payments your federal loans are forgiven, tax free. Thus, giving you greater financial freedom to achieve your life goals, such as traveling. This is just one potential solution, as everyone has an individual solution that best fits their needs and goals.
As I’m sure many of you are aware of, private student loans don’t don’t have as much payment flexibility as federal loans do. Even though there is less payment flexibility refinancing your existing private loans can potentially help your overall student loan plan by offering lower interest rates and better repayment terms. Checkout this article from our friends at Money.com to see if you should pursue refinancing your existing private loans. https://money.com/private-student-loans-refinance/
If this sounds like you, or someone in your family, give us a call or reach out to Becky@RootedPG.com.