- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Going for it - Trying to pay off $80k in student debt within next 4 years
Posted on 3/4/17 at 9:09 am
Posted on 3/4/17 at 9:09 am
Recently got hired for a new job in a new state with much lower cost of living than I live in now... plus my salary is going up and I will be making $86,500(take home will be about $4875 a month or $58,500 annually) my first year, with annual raises to be determined.
I figured with this new salary and location I could have a lot more fun, or I could really hunker down and knock out my student loan debt, I decided to do the latter.
I have $30k private loans(principle + interest) at a 10.5% interest rate and $50k federal loans at 4-6% interest rates. I worked out a deal with the private loan company in which if I pay them $20k in the next year they will eliminate the remaining accrued interest. I figured this was a great deal and will actually be able to get this done in 8 months, by Thanksgiving. Its going to be a grind and I will have to sacrifice and go without but its worth it in the long run.
That will leave me with my remaining $50k in federal loans, which I should be able to knock out in about 3 years or so. I want to get it all paid off by May 2021, which would be 10 years after I graduated, but if I can do it sooner, I will.
Its going to take a lot of sacrifice and such, and I probably wont be able to have much of a life, will have to go without on many things. I figure the 4 years of sacrifice will be worth it in the long run.
Does anyone who has taken this all-in approach to paying off debt have any tips or ideas for me that can make this process a bit more comfortable.
I figured with this new salary and location I could have a lot more fun, or I could really hunker down and knock out my student loan debt, I decided to do the latter.
I have $30k private loans(principle + interest) at a 10.5% interest rate and $50k federal loans at 4-6% interest rates. I worked out a deal with the private loan company in which if I pay them $20k in the next year they will eliminate the remaining accrued interest. I figured this was a great deal and will actually be able to get this done in 8 months, by Thanksgiving. Its going to be a grind and I will have to sacrifice and go without but its worth it in the long run.
That will leave me with my remaining $50k in federal loans, which I should be able to knock out in about 3 years or so. I want to get it all paid off by May 2021, which would be 10 years after I graduated, but if I can do it sooner, I will.
Its going to take a lot of sacrifice and such, and I probably wont be able to have much of a life, will have to go without on many things. I figure the 4 years of sacrifice will be worth it in the long run.
Does anyone who has taken this all-in approach to paying off debt have any tips or ideas for me that can make this process a bit more comfortable.
14
Posted on 3/4/17 at 9:27 am to goldennugget
Good luck!
You should have goals along the way to reward yourself. Maybe every 6 months if you hit a certain goal then you have a weekend away playing golf or whatever you're into. It will break up the long 4 years that you're about to endure and give you something to look forward to.
Are you married? Single? If you're single you may want to look at getting the cheapest housing you can which will give you some extra money.
You should have goals along the way to reward yourself. Maybe every 6 months if you hit a certain goal then you have a weekend away playing golf or whatever you're into. It will break up the long 4 years that you're about to endure and give you something to look forward to.
Are you married? Single? If you're single you may want to look at getting the cheapest housing you can which will give you some extra money.
Posted on 3/4/17 at 9:34 am to goldennugget
quote:
I have $30k private loans(principle + interest) at a 10.5% interest
How in the frick did this happen?
Posted on 3/4/17 at 9:34 am to CHiPs25
I am single
I actually just signed a lease yesterday. They did a skype tour with so I knew I was getting. It's a brand new complex and its nice, and they were doing a grand opening special since it just opened where I get the first month free. I had them break up the free month over the 12 months, so its going to be $872 a month for my first year. That's half of what I currently pay in rent here in Seattle and it has much more square footage.
I get what you mean about the rewards. We will have to see. That is my biggest worry - that I will be so determined to get these loans paid off that I sacrifice everything and have zero life. At some point I have to have some kind of fun for myself, right? Considering getting a part time weekend job to give myself a little extra cash so I can have a life. When I lived in Iowa I worked two full time jobs. With my new position its way too high up the ladder and will have way too much responsibility for me to do that again. So it would have to be weekends only. Which is a problem because I doubt anywhere would want to hire me just to work weekends.
I actually just signed a lease yesterday. They did a skype tour with so I knew I was getting. It's a brand new complex and its nice, and they were doing a grand opening special since it just opened where I get the first month free. I had them break up the free month over the 12 months, so its going to be $872 a month for my first year. That's half of what I currently pay in rent here in Seattle and it has much more square footage.
I get what you mean about the rewards. We will have to see. That is my biggest worry - that I will be so determined to get these loans paid off that I sacrifice everything and have zero life. At some point I have to have some kind of fun for myself, right? Considering getting a part time weekend job to give myself a little extra cash so I can have a life. When I lived in Iowa I worked two full time jobs. With my new position its way too high up the ladder and will have way too much responsibility for me to do that again. So it would have to be weekends only. Which is a problem because I doubt anywhere would want to hire me just to work weekends.
Posted on 3/4/17 at 9:35 am to Teddy Ruxpin
quote:
How in the frick did this happen?
I was 18 and didn't know any better?
At the time I just wanted to play football in college that I was getting a 25% academic scholarship to, I gave no fricks about anything else.
Posted on 3/4/17 at 9:41 am to goldennugget
Its worth it, but you have to have some sort of life. I'm going bare bones right now for different reason and it freaking sucks when people want to go on vacation and short trips to neighboring cities.
So just know it really sucks. 8 months is nothing in the long run, but I would use the whole year and actually have some money to take a weekend trip or something.
So just know it really sucks. 8 months is nothing in the long run, but I would use the whole year and actually have some money to take a weekend trip or something.
Posted on 3/4/17 at 9:51 am to goldennugget
Good for you, a couple of things.
Go to sofi.com today and see if you can get a better rate.
go check out LINK /, its a guy who retired early, and preaches the points of frugality. I don't buy in to his entire lifestyle but I started agreeing with his points about american consumerism and understanding the actual happiness something will bring you. Basically the theory that once certain needs are met, you get a ever dwindling return on the money you spend.
I'm not trying to retire in 10 years or anything but I'm going to start applying his principles to my family's spending and really evaluate our purchases.
Go to sofi.com today and see if you can get a better rate.
go check out LINK /, its a guy who retired early, and preaches the points of frugality. I don't buy in to his entire lifestyle but I started agreeing with his points about american consumerism and understanding the actual happiness something will bring you. Basically the theory that once certain needs are met, you get a ever dwindling return on the money you spend.
I'm not trying to retire in 10 years or anything but I'm going to start applying his principles to my family's spending and really evaluate our purchases.
Posted on 3/4/17 at 10:06 am to barry
quote:
barry
Mr. Money Mustache would tell OP if you can't bike to work, drive this and nothing more:
I do love his website though. It's been very helpful for me in setting up financial and life goals for myself, post-college.
Posted on 3/4/17 at 10:07 am to Leonard
quote:
Mr. Money Mustache would tell OP if you can't bike to work, drive this and nothing more:
yes, its one of the things i disagree with.
Some people get upset because he has a firm stance on everything, but thats the point, doesn't mean you can't pick up a lot good advice.
Posted on 3/4/17 at 10:22 am to goldennugget
80K in student loans? Damn, that's a ton for the sad little salary you were getting in Seattle
And be honest Nug, we all know this won't change anything for you:
And be honest Nug, we all know this won't change anything for you:
quote:
I probably wont be able to have much of a life
Posted on 3/4/17 at 10:27 am to barry
Yep, pointing out and being able to acknowledge the hedonic treadmill is pretty eye-opening and a big step, IMO. Doesn't mean I don't like to indulge, still
Posted on 3/4/17 at 11:12 am to goldennugget
That's going to cut into your coke money.
Posted on 3/4/17 at 11:21 am to goldennugget
Good luck. Definitely reward yourself for hitting certain milestones along the way.
When you get to the end it will be the best feeling ever.
When you get to the end it will be the best feeling ever.
Posted on 3/4/17 at 12:07 pm to goldennugget
I mean, I get it, I have plenty of student loan debt myself, but you almost have to actively search for an interest rate that high. 7 and 8s are bad enough but I never, ever saw 10.
God damn they robbed you blind I wouldn't do business with them ever again.
God damn they robbed you blind I wouldn't do business with them ever again.
This post was edited on 3/4/17 at 3:35 pm
Posted on 3/4/17 at 12:49 pm to goldennugget
quote:
I have $30k private loans(principle + interest) at a 10.5% interest rate
oh my
Posted on 3/4/17 at 1:42 pm to goldennugget
After reading some of your moronic threads on the poli board and OT, I am speechless that someone has hired you for almost $90k/year. Unless you're going to be a mud logger in Iraq.
This post was edited on 3/4/17 at 1:49 pm
Posted on 3/4/17 at 3:22 pm to barry
quote:
go check out LINK /, its a guy who retired early, and preaches the points of frugality. I don't buy in to his entire lifestyle but I started agreeing with his points about american consumerism and understanding the actual happiness something will bring you. Basically the theory that once certain needs are met, you get a ever dwindling return on the money you spend.
Been reading this all day. Good stuff.
Has motivated me to get this done even faster. frick 4 years, lets do this in 3, or even 2.5
Posted on 3/4/17 at 3:33 pm to barry
quote:
its a guy who retired early,
The funny thing is he did and he didn't. That website sort of accidentally made him a bad example of if it will work or not in practice, since it generates so much revenue.
I'm sure he has some readers though that pulled it off for real.
This post was edited on 3/4/17 at 3:34 pm
Posted on 3/4/17 at 5:47 pm to goldennugget
Build an amortization schedule into an Excel file and see how much faster you'll pay off the loan and how much interest you'll save for each $100 per month extra you pay.
That way, you can easily decide how much sacrifice you want to make for what benefit.
Obviously, knock out the private one first due to the higher interest rate. Living on Ramen noodles and having no social life for 8 months would suck but most of us would do it for $10,000.
That way, you can easily decide how much sacrifice you want to make for what benefit.
Obviously, knock out the private one first due to the higher interest rate. Living on Ramen noodles and having no social life for 8 months would suck but most of us would do it for $10,000.
Posted on 3/4/17 at 6:07 pm to Bestbank Tiger
quote:
Build an amortization schedule into an Excel file and see how much faster you'll pay off the loan and how much interest you'll save for each $100 per month extra you pay.
There is a website called Unbury that does it for you
I am doing 2500 a month starting April 3 to knock out the $20k private
After that I will see where I stand to plan the attack for the remainder
I'm definitely getting a part time weekend job
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News