Pay off your student loan and create future value with your money.

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It has become more and more prevalent for graduating students to carry immense debts. Today, one of the most ignored problems is the student loan problem. It is now taken a shape close to an impending crisis, and every government seems to sweep it under the carpet or apply short-term fixes, akin to applying band-aids where the need is surgery.

We now see many individuals continue to have this issue well into their 40s and some, even 50s. Unfortunately, there are not enough programs that are effective to help students and fresh graduates manage their debt. Most solutions are debt consolidation programs or refinancing programs and they do not offer actual repayment help in terms of using the time value of money. Most financial companies with expertise in such field are interested and chase high net-worth clients alone, and the government is seemingly unconcerned about these existing issues - and leave the average person to fend for themselves.?

Every borrower should aspire for freedom from student loans, which has become but only a far-fetched dream under the current system. However, there is good news - there is a way to pay off your loans faster. With help from systematic saving and experts from the investment discipline, you can pay off your student loans faster than you expect. Our concept revolves around the idea that the compound interest on student loans can be counteracted through the power of investment which can potentially compound the value of money over time.

Let's take an example of a typical student coming out of college who has a $100,000 student loan with 7% interest. Assuming they plan to pay back the total amount in the next 20 years, their monthly payment will be?$775.30. Under this repayment plan, the total Interest Paid will be $86,071.74. So the entire amount out of the student's pocket is?$186,071.74. Let's compare this example with a case where the student opts for investing an additional small amount every month.?

Let's say they decide to invest an additional $225.00, making their monthly cost for the loan + investment an overall $1000.

With this new plan, the student will invest?$225 per month?into the SLR67. Assuming there will be a conservative market return rate of approximately 8%, the student SLR67 account value will be $25,390.31 within the next seven years, which they can use to pay off the loan, reducing the amount of time needed for a full payoff.

Assuming the borrower paid every loan installment, at the end of the 7th year the outstanding loan balance would be?$79,267.91.

The student can either continue with the investment in SLR67 or use those funds to pay off the loan balance - assuming they put the accumulated money towards the loan, this payoff will bring down the outstanding balance to $53,877.60.

Now there are several options available to the graduate:

1. If the rates are low, they could refinance the loan.

2. Even after refinancing, continue to pay off the loan with the same monthly payments - they should now be able to pay off the remaining balance in 8 to 9 years, saving them an overall 4-5 years.

3. Or opt for a third, better option: since the loan's monthly payment has been reduced, the student can continue with the minimum monthly payment for the loan and increase SLR67 investment.

There is now a balance of $53,877.60 for the remaining 13 years; at a 7% rate(assuming no refinance for simplicity of this discussion), the new amount repayment will be $526.96 per month. If the student continues investing $475 into the SLR67 (keeping the total outflow at approximately $1000 per month). The student will have $35,152.13 further to pay off the loan within the next five years. At the end of the next 5 years, the Student can pay off the loan in its entirety and still have cash at hand in the SLR67 account which he or she can use to their convenience, perhaps part of the down payment for a house.

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This is just one example of how students can use the SLR67 to free themselves of crushing student debt interest rates. Typically, graduate jobs pay modestly well, and as the student progresses in their careers, their salaries increase. The excess income can be used judiciously, investing the additional money into the SLR67 and reaping the returns to shorten their loan payoff times or as well use the same SLR67 account to save up for the future.