It sounds a little ridiculous to move just to save money on your loan, but the student loan burden is no joke. If you’re curious, Student Loan Hero has a calculator that will tell you how much you could potentially save.
Student Loan Hero’s CEO, Andrew Josuweit, actually did this to save money on his own loan. He moved from New York City to Austin, Texas, a state with no income tax. Student Loan Hero explains:
With no state or municipal income taxes in his new city, relocating freed up around $15,640 of Josuweit’s income. Taking advantage of these tax savings and a 20 percent drop in living expenses, Josuweit used his newly freed-up money to
make extra payments
and knock out his remaining student loan balance. He sent his final payment in September 2016.
Nine states currently have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Obviously, this is a very “your mileage may vary” situation. Your job prospects might be quite different, depending on where you live, for example. Still, it’s interesting to see just how much you could potentially save with a move.
If you’re curious, Student Loan Hero built a calculator to look at the numbers. Simply add your tax info, loan info, and desired state of residence, and the calculator will tell you how much you could save on your loan overall. Check it out for yourself at the link below.
Would You Relocate to Save $1,977 a Year and Pay Off Student Loans?