U.S. News and World Report: 14 Money Moves You Will Be Thankful For

In Family Law, Financial Planning

Lisa Zeiderman is quoted in this US News and World Report article discussing the importance of avoiding taking out student loans to cover other expenses.

Refinance or minimize your student loans.

Refinancing student loans could be a smart money move for some people. Extending the loan to a longer term could reduce payments and free up cash while a shorter term will save on total interest cost. However, those with federal student loans need to think carefully before refinancing. Doing so could make them ineligible for government debt forgiveness programs.

If you or a child are heading off to college, avoid taking out loans beyond what is needed to cover necessary expenses. For example, don’t use loans to pay for an expensive apartment when lower-cost housing options are available. “This can lead to a very dangerous situation,” says Lisa Zeiderman, an attorney and board member of Savvy Ladies, a nonprofit that provides free financial education. “I have seen people run up huge school loans that can’t be discharged in bankruptcy and must be paid off.”

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