Travis Financial Services–

Navigating Debt and Student Loans as a HENRY

Steps Towards Financial Freedom

For HENRYs — High Earners [who are] Not Rich Yet — this high salary often comes at the expense of hefty student loans or other types of debt. Tackling this debt now can allow you to put your salary to its highest and best use. But where should you begin? Below, we discuss a few tips and strategies you can use to navigate student loan debt as a HENRY.

Evaluate Your Loan Repayment Options

If you have federal student loans, multiple repayment options are available, including standard, extended, and income-driven repayment plans. Income-driven plans may not be the cheapest option if you have a high income. These plans can help you pay down your student loan debt faster than a standard plan, which usually amortizes your total debt over 120 monthly payments. Private student loans also have various repayment options, many overlapping with federal loan repayment options.

Consider Refinancing

Refinancing may broaden your horizons if you're unhappy with the repayment options available. Although refinancing federal loans may eliminate your eligibility for certain benefits like public service loan forgiveness, it can also help lower your interest rate or give you more repayment options. Shop around for competitive rates from private lenders.

Prioritize High-Interest Loans

If you have multiple student loans with varying interest rates, pay off the loans with the highest interest rates first. By focusing on these high-interest loans, you'll be able to minimize the total amount of interest paid over the life of the loans, which will accelerate your debt payoff timeline.

Make Extra Payments

High earners often have the financial flexibility to make extra payments towards student loans beyond the minimum monthly requirement. Consider setting aside additional funds to pay these loans off more quickly and reduce the overall interest paid.

Automate Payments

Set up automatic student loan payments to ensure you never miss a payment. Many lenders also offer autopay discounts as a 0.25 or 0.5 percent reduction in your interest rate. Automating your loan payments can also help you stay disciplined and consistent with your debt repayment goals.

Maintain Emergency Savings

While it's important to prioritize paying off student loan debt, it's also essential to maintain a sufficient emergency savings fund to cover any financial setbacks. The last thing you want to do is be forced to take on high-interest debt to cover an unexpected expense.

Important Disclosures:
Content in this material is for educational and general information only and not intended to provide specific advice or recommendations for any individual.
This article was prepared by WriterAccess.
LPL Tracking #577211

Check the background of investment professionals associated with this site on FINRA’s BrokerCheck.

The financial consultants at Travis Financial Services are registered representatives with, and securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA / SIPC). Insurance products are offered through LPL or its licensed affiliates. Travis Credit Union and Travis Financial Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Travis Financial Services, and may also be employees of Travis Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Travis Credit Union or Travis Financial Services. Securities and insurance offered through LPL or its affiliates are:

Not Insured by NCUA or any other Government Agency

Not Credit Union Guaranteed

Not Credit Union Deposits or Obligations

May Lose Value

The LPL Financial registered representatives associated with this website may discuss and/or transact business only with the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.

The "Contact TFS" and "Login to Your Account" links are provided as a convenient connection between the websites belonging to Travis Credit Union and its business partner. The policies and procedures in use at our business partner may differ from those in use at Travis Credit Union. Travis Credit Union is not responsible for the content contained in our business partner website.

Forbes Top 10 Credit Unions in California Award
Desjardins Financial Education Award, 1st place nationwide, adult and youth
US Air Force Distinguished Credit Union of the Year
Travis Credit Union footer small logo

Routing 321170839

© 2024 Travis Credit Union. All Rights Reserved.

Privacy Policy | Third-Party Sites | CCPA | Notice at Collection | Home Mortgage Disclosure Act Notice 
Avoid Foreclosure | Disclosures | Online Security & Safety and How We Protect You | Service of Process

By continuing to use this site, you agree to our use of cookies as described in our Online Privacy Policy.

If you are using a screen reader or other auxiliary aid and are having problems using this website,
please call 1-800-877-8328 for assistance.

NCUA logo footer

This Credit Union is federally insured by the National Credit Union Administration.