According to statistics, the average college student will graduate with approximately $35,051 of student loan debt. Though the debt was necessary to obtain a college degree, starting off your independence with thousands of dollars looming over you can be stressful. In fact, many Americans spend years trying to accumulate enough money to pay their student loan balances in full.
While you could very well pay the minimum each month, this could essentially take you years to pay off. Naturally, the longer you have a loan balance, the more you pay in interest, which increases the amount of debt. Since you’ve just emerged from college, you’ll likely end up in an entry-level position which won’t be enough to tackle the debt. So rather than spend the next few years paying off student loan debt, you could consider finding a lucrative career that can help you get there faster… in this case, we’re going to talk about a loan mortgage officer.
What is a Loan Mortgage Officer?
Financial institutions such as banks and mortgage companies hire individuals to help them locate interested home buyers in need of a mortgage. Not only are you paid a base salary, but for every mortgage that you close on, you’re able to obtain commission, which can be a pretty sizeable amount. While each company will pay commissions differently, the average loan mortgage officer can make about $42,000 a year or more.
Using Commission to Pay Down Debt
Now that you understand what a mortgage loan officer is and how they make a living, let’s look at how you can use this income to pay down those student loans. Remember, the amount you make will greatly depend on upon your ability to close on loans and generate leads. However, with a great marketing strategy and determination, you can knock out your debt in no time.
Here’s an idea on how to put your income to good use:
- Add up all of your student loan balances
- Divide the total amount due by the number of years you want to pay the loans off in. For example, if you have $20,000 in student loans, and you want to pay them off in 4 years, you’ll need to pay a total of $5,000 (in principle) a year towards your loans.
Now that you know exactly how much you need to pay each year, you can create earnings goals as a mortgage loan officer. Earnings goals will motivate you and keep you on target to repay your loans on time (if not sooner than your goal).
Here are a few more tips to keep in mind:
- Try to live off of your base salary so that all of your commission can but applied to your student loan debt.
- Continue to pay minimum balance each month and apply larger payments when you receive a commission.
- When paying down the balance, be sure to tell lenders to apply the amount to the principal and not the interest so that you can get the balance down faster.
- Since you’ll receive a tax credit for paying on your student loans, use these additional funds as well to bring that larger balance down.
Once you’ve started to get the hang of generating leads and closing on loans, you may find that you end up paying your student loans off a lot faster. Remember, to always pay something each month as a delinquent loan can lead to serious financial complications including wage garnishments and income tax withholdings. If you’re having serious difficulties, there are solutions you can utilize to get you out of default status as you build your loan mortgage officer income to pay down the debt in larger chunks.
As a mortgage loan officer, you have the means to make as much income as you want. Whether you want to pay those student loans down in a year or five years, you can do it with a strategic plan of action in place. As you look for the best organization to work for, be sure to choose a company that not only provides decent compensation but one that offers you tools and resources to reach your earning goals. In no time at all those loans will be a thing of the past.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.