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Posted on 8/3/23 at 10:01 am to JohnnyKilroy
so you wouldnt have had the money each month, but you'll magically have enough to to pay off the loans at the end of august? sounds like you have a lot less than 100k in loans unlike OP
Posted on 8/3/23 at 10:08 am to Pezzo
quote:
so you wouldnt have had the money each month, but you'll magically have enough to to pay off the loans at the end of august? sounds like you have a lot less than 100k in loans unlike OP
What are you talking about?
I did have the money each month. I just didn’t pay it when I didn’t need to. Once interest restarts I’ll pay the whole thing off and have more money in my bank account than if I had continued paying through the pause.
Maybe take a couple of finance classes and you’ll understand.
Posted on 8/3/23 at 10:16 am to JohnnyKilroy
quote:
Would have been much worse off had I used that money to continue paying each month
you made yourself sound poor.
quote:
Once interest restarts I’ll pay the whole thing off and have more money in my bank account than if I had continued paying through the pause.
assuming you have some sort of HYSA? you never mentioned it.
Posted on 8/3/23 at 10:27 am to Pezzo
quote:Love when someone like you is so argumentative and wrong at the same time
Pezzo
He most likely put his monthly payments into a HYSA, but could have also put it into CDs, t-bills, bonds, or the market and still come out ahead.
If I had to guess, Dave Ramsey would have recommended you continue the payments because the average American is so financially irresponsible it’s sad. However, if you have the discipline to not spend it, why pay off a 0% loan early when you could come out ahead otherwise?
Posted on 8/3/23 at 10:39 am to Pezzo
quote:
assuming you have some sort of HYSA? you never mentioned it.
Some there. Most invested in broad market equities.
By rough calculations I’ll be around 20k ahead doing it my way versus having paid each month over the past 3 years.
Posted on 8/3/23 at 10:57 am to Tifway419
so if the government would have done the same with your mortgage, you'd just sit back and stick those payments in savings?
Posted on 8/3/23 at 11:11 am to Pezzo
quote:
you'd just sit back and stick those payments in savings?
Of course.
Either that or invest it in a business or additional real estate or something like that.
Don’t see too many scenarios where I would willingly continue paying something not due and not accumulating interest.
This post was edited on 8/3/23 at 11:13 am
Posted on 8/3/23 at 11:12 am to Pezzo
It’s unbelievable how many of y’all suggested things without reading and comprehending. Instead of finance classes maybe y’all should go back to middle school and do accelerated reader programs. Rant over
Yes I’m a vet with less than 100k besides I had full ride for undergrad and went in state to AU for vet school. Also I’m not an idiot and spent all the money instead of saving for loans. I did exactly what most people should have done and have continually saved in a HYSA and now have the money to pay off most of it. And will most likely do that in the next few weeks before interest begins accruing again. It’s just a matter of the govt constantly being wishy washy on their decisions of when things will start back and what rates etc.
Yes I’m a vet with less than 100k besides I had full ride for undergrad and went in state to AU for vet school. Also I’m not an idiot and spent all the money instead of saving for loans. I did exactly what most people should have done and have continually saved in a HYSA and now have the money to pay off most of it. And will most likely do that in the next few weeks before interest begins accruing again. It’s just a matter of the govt constantly being wishy washy on their decisions of when things will start back and what rates etc.
Posted on 8/3/23 at 11:13 am to Pezzo
quote:
so if the government would have done the same with your mortgage, you'd just sit back and stick those payments in savings?
Of course I would. Why on earth would I pass up an interest free loan?
Posted on 8/3/23 at 11:16 am to Joshjrn
I love these people who come in all high and mighty about how “only idiots would stop making payments during the pause”
There’s a ton of them on the OT.
They usually abandon the thread when someone breaks down how that is clearly a suboptimal choice. They were so sure of themselves too
There’s a ton of them on the OT.
They usually abandon the thread when someone breaks down how that is clearly a suboptimal choice. They were so sure of themselves too
Posted on 8/3/23 at 11:22 am to Joshjrn
Exactly. Like I’m drawing 250 or more each month in interest in account that I can pull out all my money anytime with no penalty. So in 3 years that’s thousands of dollars that I would not have at this point if I had been just making payments each month
Posted on 8/3/23 at 11:36 am to AUVet21
quote:
I currently owe close to 100k in student loans and have not had to pay any since graduating.
quote:
I’m all for the new bill being introduced about setting interest permanently at 0
Posted on 8/3/23 at 11:37 am to Pezzo
quote:
so if the government would have done the same with your mortgage, you'd just sit back and stick those payments in savings?
Yes
Posted on 8/3/23 at 11:56 am to AUVet21
What year did you graduate? I would have expected more than that 100K
Posted on 8/3/23 at 12:21 pm to thelawnwranglers
quote:
Agreed but how do 0% loans lower cost of college?
They don't. But tying people to 25 year 15-20% variable interest loans with nothing needed other than a signature on a piece of paper is a little ridiculous.
I have student loans. I'll be paying them off until I'm in my late 40s. They need to reform the process. I hadno credit checks, no one cosigned, nothing. I just signed a piece of paper.
I also have a mortgage (which is less than my loans). For my mortgage I had to go through hoops, and sit with a lender, etc.....
For my student loans I didnt have to do anything. Worse, i was encouraged by one "school counselor" to take the maximum available to me multiple times and he showed me how to apply for some other ones. In hindsight, that dude was a piece of shite.
This post was edited on 8/3/23 at 12:25 pm
Posted on 8/3/23 at 12:36 pm to thelawnwranglers
quote:
Agreed but how do 0% loans lower cost of college?
They don't lower the cost of college, but the lower the total costs to the traditional student loan borrower.
My personal example. Had roughly $40k in student loans, refinanced at a fixed 6.5% after college for 15 years. Minimum monthly payment would have been $350 and I would have paid $22.7k in interest if I stuck with minimum payments; for a total cost of $62.7k.
At 0%, I could have paid $222 a month for 15 years, $0 in interest, for a total cost of $40k
This post was edited on 8/3/23 at 12:38 pm
Posted on 8/3/23 at 4:32 pm to JohnnyKilroy
quote:
I have a degree in finance and haven't paid a cent on my loans since the pause and interest rate freeze happened. Why would I?
I believe while that loan was sitting there it was incurring interest. For example: if you owed 9k when the loan was paused when it resumes you now owe 12k.
Posted on 8/3/23 at 4:59 pm to FLObserver
quote:
I believe while that loan was sitting there it was incurring interest. For example: if you owed 9k when the loan was paused when it resumes you now owe 12k.
Federal loans were not accruing interest. 0%.
Posted on 8/3/23 at 5:05 pm to FLObserver
quote:
I believe while that loan was sitting there it was incurring interest.
Nope. My balance due today is the same as it was in March of 2020.
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