Although the rich and the famous have cushy lives, they still face many of the everyday struggles of Americans.
And, not even celebrities are immune to worries about student debt, and many have spoken out about their own experiences with student loans.
While stars often have more money and financial resources to tackle their student loan debt, many of their strategies can be used by anyone.
Here’s a look at what some of today’s biggest names have to say about the best ways to pay off student debt.
Kerry Washington: Capitalize on opportunities
Kerry Washington is best known as Olivia Pope on ABC’s “Scandal.” And it wasn’t until Washington landed that iconic role that she could afford to pay off her student loans, she told ELLE magazine earlier this year.
Washington, however, has few regrets about her student debt. She “could not have afforded college without the help of student loans,” she said during the 2012 Democratic National Convention.
Washington recognizes she wouldn’t be where she is today if it weren’t for her college education and the student loans which enabled her to pursue it.
Like Washington, college graduates should make the most of their education and opportunities to create success, earn more income and pay off their debts.
Miles Teller: Balance financial goals
Miles Teller is an actor known for roles in films like “Fantastic 4” and his Oscar-nominated turn in “Whiplash.”
But before heading to Hollywood, Teller told Vulture that he studied acting at NYU and borrowed around $100,000 to pay for it. And while Teller could easily afford to pay off his student loans, he hasn’t yet.
“I can, if I want that badge of accomplishment,” he told Vulture. However, “My business manager says the interest is so low, there’s no sense in paying them off.”
Like Teller’s manager, it’s important to weigh student loan repayment against other financial priorities. It may be that your money can be put to better use, like saving for retirement or an emergency savings account, rather than paying extra towards student debt.
Jane Lynch: Make informed decisions
Jane Lynch, who was on the hit FOX TV show “Glee”, feels so passionately about the topic of student loans that she partnered with the National College Finance Center to create a “Don’t Major in Debt” campaign.
Lynch did so with the aim to help educate parents and students on the options to pay for college.
“Parents and students have to be wise and have to have their eyes open about what’s out there, and what you’re looking at in the long-game in terms of having this much debt on you as a young person,” Lynch said on MSNBC in July 2012.
Lynch adds that families need to weigh their options, both for financing education and choosing a low-cost institution, to make smart decisions.
Gabrielle Union: Live below your means
Known for her roles in films like “10 Things I Hate About You” and “Bring It On,” Gabrielle Union currently stars in the titular role of BET’s “Being Mary Jane.”
But before hitting it big, Union studied at UCLA.
“I want people to know the work that it took to get through UCLA, that I had student loans and worked,” Union told E! Online last year. “I was eating Top Ramen and lived well below my means.”
Keeping expenses well below earnings is important to ensure you can afford you student loans, and even repay them faster.
Kate Walsh: Use windfalls to target debts
As a college student, actor Kate Walsh of “Grey’s Anatomy” and “Private Practice” fame studied at the University of Arizona.
She “came out of college with, oh, jeez, just thousands and thousands and thousands of dollars in debt,” Walsh said in an interview with Refinery2. “And that’s insane — it was just interest accruing and accruing and accruing.”
When Walsh finally did hit on success, she used the windfall to target her student loans.
“The only way I was, honestly, able to pay off my student loans was at age 37, because I happened to get on a big, fat TV show called ‘Grey’s Anatomy,’ and I was able to finally pay my student loan debt,” she added.
Everyday borrowers might also come across similar “extra” money from a raise, side job, or even a tax refund.
When these windfalls come, putting the extra cash toward student loans can cut the principal down, save interest and shorten your repayment period.
President Obama: Pay as much as you can to student debt
President Barack Obama has been fairly candid about the student debt that he and First Lady Michelle Obama faced.
“When we graduated from college and law school we had a mountain of debt,” he said in a 2012 address at the University of North Carolina at Chapel Hill. “When we married, we got poor together.”
He added that they put a lot of their earnings into their student loans early on. During the first 8 years of marriage, they paid more on their student loans than they did on the mortgage of their Chicago condo.
Obama revealed they finally were free of student debt just four years before he was elected to the presidency.
Be proactive when setbacks arise
Plenty of college graduates find themselves in the same boat of being unemployed or otherwise unable to pay student loans.
When this is the case, be proactive, communicate with your loan servicer and take advantage of deferment or repayment options. It can lower loan payments and give you a chance to get back on your feet, without the painful consequences of delinquency, default or damaged credit.
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1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 5.87% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 5.87% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
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2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
Savings example: average savings calculated based on single loans refinanced from 9/2013 to 12/2017 where borrowers’ previous rates were disclosed. Assumes same loan terms for previous and refinanced loans, and payments made to maturity with no prepayments. Actual savings for individual loans vary based on loan balance, interest rates, and other factors.
Application detail: 5 minutes indicates typical time it takes to complete application with applicant information readily available. It does not include time taken to provide underwriting decision or funding of the loan.
Instant rates mean a delivery of personalized rates for those individuals who provide sufficient information to return a rate. For instant rates a soft credit pull will be conducted, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
Total savings calculated by aggregating individual average savings across total borrower population from 9/2013 to 12/2017. Individual average savings calculation based on single loans refinanced from 9/2013 to 12/2017 where borrowers’ previous rates were provided. Assumes same loan terms for previous and refinanced loans, and payments made to maturity with no prepayments. Actual savings for individual loans vary based on loan balance, interest rates, and other factors.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
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|2.95% – 6.37%2||Undergrad & Graduate||Visit Laurel Road|
|2.48% – 6.25%5||Undergrad & Graduate||Visit CommonBond|
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