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Student Load question
Posted on 5/29/12 at 2:06 pm
Posted on 5/29/12 at 2:06 pm
I've got 2 student loans that were consolidated (1 unsubsidized, 1 subsidized). Combined they are about $12k with an APR of 6.62%. I can't seem to see any change of my total balance and it's aggravating. So my questions are 1) how bad is 6.62%, 2) if that's bad, how can i go about getting it lower, and 3) how can i go about paying off this thing without putting like $1k a month on it?
5
Posted on 5/29/12 at 2:35 pm to couv1217
Your rate is pretty normal and I don't understand what your issue is, but you could always pay more a month to get it paid off.
Be happy that putting 1k a month on your loans actually makes a dent in them. If you got a good job, 1k shouldn't be hard to do without kids and shite.
Be happy that putting 1k a month on your loans actually makes a dent in them. If you got a good job, 1k shouldn't be hard to do without kids and shite.
Posted on 5/29/12 at 2:39 pm to Teddy Ruxpin
Only putting like $200 a month right now. Trying to pay off some other stuff first. Taking care of the other things since I get some back for taxes on the student loan.
Posted on 5/29/12 at 2:40 pm to couv1217
When did you start making payments?
Posted on 5/29/12 at 2:42 pm to GeauxColonels
Last year
Posted on 5/29/12 at 2:43 pm to couv1217
The default repayment option is going to pay off the loan in 10 years. That is the "fastest" plan. If you want to speed it up, you just pay more. I don't think there is much else to it.
Posted on 5/29/12 at 2:46 pm to Teddy Ruxpin
I know...but I put like 200 a month and $70 goes to one loan $40 goes to the other and $90 goes to interest...just sucks I guess
Posted on 5/29/12 at 4:13 pm to couv1217
Kinda wishing you'd spent some of that $12k on a Finance class, huh?
You don't have to pay $1k a month, but you also don't have to pay $200. A decrease in your already not bad rate isn't going to get you much relief. Paying large chunks will cause you to pay less in interest than you otherwise would.
You don't have to pay $1k a month, but you also don't have to pay $200. A decrease in your already not bad rate isn't going to get you much relief. Paying large chunks will cause you to pay less in interest than you otherwise would.
Posted on 5/29/12 at 4:31 pm to Socrates Johnson
quote:
Socrates Johnson
So how much do you recommend putting towards it monthly to start getting this thing paid off?
Posted on 5/29/12 at 4:32 pm to couv1217
I had an 11k loan, both unsubsidized, so when I had to start paying them, it was around 12k.
My minimum payment per month was $140 and it was barely doing anything. Like $30 would go to each loan. I don't remember exactly when, but I decided to put around $1k I had saved up toward the principle. When I did that, it knocked my next due date back nearly 8 months. I then started to pay $300 a month and it keeps knocking back the due date (not that it really matters). The interest each month is less and less too. Now, out of the 300, only about $15-19 is interest per loan. When I got my tax return back this year, about 40% of the 2k I got went straight into my loan.
It's getting paid off much faster now. I'm not OT rich by any standards even though I'm young, but I should have it paid off next year. I spent my first 1-2 years like you, and I maybe only knocked 1k off of it, if that. Paying it like I am now, it would have taken 2 years or so.
Hope that is something you can relate to and take something from..
My minimum payment per month was $140 and it was barely doing anything. Like $30 would go to each loan. I don't remember exactly when, but I decided to put around $1k I had saved up toward the principle. When I did that, it knocked my next due date back nearly 8 months. I then started to pay $300 a month and it keeps knocking back the due date (not that it really matters). The interest each month is less and less too. Now, out of the 300, only about $15-19 is interest per loan. When I got my tax return back this year, about 40% of the 2k I got went straight into my loan.
It's getting paid off much faster now. I'm not OT rich by any standards even though I'm young, but I should have it paid off next year. I spent my first 1-2 years like you, and I maybe only knocked 1k off of it, if that. Paying it like I am now, it would have taken 2 years or so.
Hope that is something you can relate to and take something from..
Posted on 5/29/12 at 4:34 pm to couv1217
quote:
$12k with an APR of 6.62%
I had a $12K bar exam study loan that was at 13.2% (Because I was a desperate fool who had to quit working for 2 months and had no savings). As soon as I started working I threw as much money at that thing as possible and deferred my other, cheaper loans. I put at least 20% of each paycheck toward that loan and nearly have it paid off. A couple months ago I started paying back the rest of my loans and while they won't be paid off in a couple years it'll be a lot quicker than their timetable.
As others have said: pay as much as you can if it's your most expensive debt, but don't go broke paying it off. The only way to get it lower is to sign up for automatic deduction from your checking account. Two reasons I haven't done that: 1) it's only saving .25% and 2) I don't want Sallie having THAT much access.
This post was edited on 5/29/12 at 4:38 pm
Posted on 5/29/12 at 4:35 pm to couv1217
I have similar loans. I recommend getting an emergency fund of 3 to 6 months of bills before going all in (still pay at least the minimum). You never know what will happen on that first job.
Posted on 5/29/12 at 4:37 pm to couv1217
At the current payment level of $200, you'll have it paid off in a little over 6 years. $300 will get you to 4 years. $400 will get it to 3.
Do you know how to make an amortization table in excel?
Do you know how to make an amortization table in excel?
Posted on 5/29/12 at 6:49 pm to Socrates Johnson
I would recommend paying them off as quick as possible and make it your #1 priority. My wife and I graduated with 60k combined in student loan debt. Luckily we were both able to get jobs straight out of school netting approx $55k combined. We sort of made it a game to see just how little we could live on so we could dump as much as possible on the loans. We rarely went out to eat, made sure we knew where every penny went, and just lived as frugal as possible. Any bonuses or other extra income went straight to the loans. It definitely paid off because 22 months after graduating we were debt free. Believe me, once you see that balance dropping you'll get more and more anxious to knock it out. at least that's how it works for me.
Posted on 5/30/12 at 10:35 am to iggle
quote:
iggle
Thanks so much man...best advice as of yet.
Posted on 5/31/12 at 9:39 pm to couv1217
(no message)
This post was edited on 5/31/12 at 9:46 pm
Posted on 5/31/12 at 10:41 pm to iggle
I thought making payments to principle didn't change your monthly due date. When i paid of my truck loan I would make the monthly payment as scheduled and then 2 weeks later submit another payment specifying it be applied to principle and then the next scheduled payment would be payed as usual. Does it work differently for student loan debt?
This post was edited on 5/31/12 at 10:42 pm
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