Apr 17, 2017 01:05 PM EDT
Student loans have been a great burden to a lot of people after realizing that the income they generate is not enough compared to the cost of the debt they've accumulated while in college. However, one expert advised that moving to another state can actually help people lessen this burden.
Andrew Josuweit, CEO of Loan Hero, said that moving to a different state with no income tax will lessen the student loan burden most people have. His advice came from his own experience a few years back when he had to repay $107,000 worth of student loan debt.
At that time, Josuweit was living in New York City known as one of the states with the highest taxes. He then decided to move to Austin, Texas which has no income tax. The move helped him free up more than $15,000 of his income. Josuweit used that money to slowly pay up the remaining balance of his student loan and finally, he was able to pay the last of it in September 2016.
Because of his experience, he conducted a research through his company Loan Hero, to find out how much can an average working person save if they live in a state with no income tax. They calculated the income tax returns of a single filer with no dependents and they found out that they can save up to $1,977.
There are nine states that have no income tax - Alaska, Wyoming, Florida, Nevada, New Hampshire, Tennessee, South Dakota, Texas, and Washington. On the other hand, the states with the highest income tax are Oregon, Washington D.C., Iowa, New York, and Idaho.
Moving to another state might not be a good idea for some people, especially when they consider the job prospects they are looking for. However, it is interesting to note how much a person can save just by moving to a different place.
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