You Can Save on a Student Loan by Moving to Another State – Here’s How Much
It sounds a little ridiculous to move just to save money on a loan, but the burden of a student loan is no joke. If you’re curious, Student Loan Hero has a calculator that will tell you how much you can potentially save.
Student Loan Hero CEO Andrew Josuwait really did it to save money on his own loan. He moved from New York to Austin, Texas, with no income tax. Student Loan Hero explains:
Since there are no state or municipal income taxes in his new city, the move freed up about $ 15,640 from Josuwait’s income. Taking advantage of these tax savings and a 20 percent cut in living expenses, Josuwait used his newly freed up money to make additional payments and knock out the remaining student loan balance. He sent the last payment in September 2016.
There are currently no income taxes in nine states: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Obviously, this is a very different situation in which “your mileage may be different”. Your job prospects can be very different, for example, depending on where you live. However, it is interesting to see how much you can potentially save by moving.
In case you’re curious, Student Loan Hero has built a calculator to look at numbers. Just add your tax information, loan information and desired state of residence and the calculator will tell you how much you can save on the overall loan. See for yourself using the link below.
Would you move to save $ 1,977 a year and pay off your student loans?