Map Out Your Current Financial Situation

Now that student loans will once again be a monthly expense, it is helpful to map out your financial situation. Do this by assessing your monthly cash flow, as well as your monthly expenses. This will help you make informed decisions on how much you can afford in student loan repayments, and what expenses you may need to cut. There are numerous free spreadsheet templates and budgeting apps to get you started.

Try the 50/30/20 Rule

To help you decide on how much you should budget for student loans repayments and other expenses, try the 50/30/20 rule - 50% of income spent on necessities, student loans and other debt; 30% spent on wants; and the remaining 20% deposited into savings. Each person’s situation is different, and these percentages can be adjusted

Explore Student Loan Forgiveness through the Public Service Loan Forgiveness (PSLF) Program

Along with mapping out your financial situation and budgeting, look into having your student loans forgiven as a City employee. The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments, while employed by a government or non-profit organization. Check out our recent webinar, What's New with Student Loans? Summer 2023 Update, for more information.

Use Financial Wellness Resources

If you need additional support in strategizing for student loan repayments, try out these resources.

• NYC Financial Empowerment Centers provide FREE and confidential one-on-one financial counseling (in person or over the phone).
• Members of the New York City Deferred Compensation Plan (DCP) are eligible to receive low cost Individual Financial Consultations with a Certified Financial Planner™, as well as access to financial wellness webinars.