Paid off $155,515 Worth of Loans in Under 4 YEARS!!!! Student Loans |
- Paid off $155,515 Worth of Loans in Under 4 YEARS!!!!
- Vet school debt causing sleepless nights
- Is switching to PAYE worth it after 5 years of IBR?
- Private student loans for grad school abroad
- Going back to school
- Can Perkins Loan be cancelled concurrently with making payments towards PSLF?
- I thought I paid off one of my loans but my balance went up from 0.
- Qualifying for SoFi's best rates.
- Bill would spike debt forgiveness for attorneys
- Received an email from Fedloan to click a link to read a secure message that expires in one week. Link has a myfedloan.org address, but it asks me to create an account. Is this a scam?
- Anybody know what’s happening with the student loan interest deduction?
| Paid off $155,515 Worth of Loans in Under 4 YEARS!!!! Posted: 08 Dec 2017 06:50 AM PST I'm not trying to brag, I just needed to share my story to show it is not impossible. I graduated in 2013 from a state school with an engineering degree. Between now and then, I've traveled the world, got an MBA degree (company paid, paid $8k out of pocket, real time), bought multiple cars, bought and sold my 1st home, just built my second home. Granted my salary is higher than most, I put my head down and focused on paying down my loans. Did it take discipline? Yes. Was it extremely difficult? No. Actually, it was fun to watch the values drop. My monthly payment went from ~$1250 a month in 2013, to less than $40 a month (now, with 2991.50 left @ 3.15%). A bit about my loans (estimate about 116k original loan amounts) -- a mixture of private and federal, ~86k Private (each at 15 year term; 50k @ 8.49%, 36k @ 7.49%) ~30k Federal (each at 10 year term; ranging from 3.15-7%) Here is the breakdown paid by year: $ Amount Year 300 2012 2345 2013 24104 2014 47863 2015 34029 2016 46874 2017 2991.5 Outstanding @ 3.15% Estimating I saved $60k or so in interest alone? Not positive on that number, just a guess! Feel free to ask me questions. I can answer anything you'd like and post additional details if it's helpful. So excited to have this burden lifted from me and now I can really enjoy life how I want to!!! [link] [comments]  |
| Vet school debt causing sleepless nights Posted: 08 Dec 2017 10:54 AM PST In 2016 my wife achieved her lifelong goal of graduating veterinary school and becoming a practicing veterinarian. With that came a mountain of student loan debt that appears to be impossible to overcome and makes me ill whenever I see the balance. She loves her job, but the salary for her career will never be that of a doctor or pharmacist. One would think an in demand career that requires a lot of education, drive, and commitment would be financially rewarded. They would be wrong. The financial burden imposed by vet school is about the same as human medicine or pharmacy. Also, we know we're not the only ones in this situation, as many of her friends have similar student loan debt from vet school. All of the loans she has are federal loans serviced by Great Lakes and none come from private sources. Upon entering veterinary school she had about $16,000 in subsidized and unsubsidized loans from her undergraduate education, which was at an inexpensive state school. the interest rates for these loans range from 5.35% to 6.55%. When she was accepted to veterinary school it was in a different state and she was required to attend for the first year as an out of state resident prior to being eligible for in state tuition. The first year alone was nearly $70,000 in tuition and fees, with subsequent years being about ⅔ of that except for the final year which included the summer semester for clinical rotations. Upon graduation her student loan burden was $315,000 including Stafford and Grad Plus loans. The weighted average interest rate is 6.35%. Foolishly, without knowing better and without adequate guidance we did accept a portion of the loans that could be used for living expenses during her time in school. I was still entry level in my career at that time and barely made enough to cover rent, utilities, etc. At this time we both have jobs that pay about $60K per year and are contributing 12% and 10% to retirement plans. We purchased a home last year and our mortgage payment is ~$1,400 per month. Adding in utilities, taxes, insurances, and monthly payment for our furnace we spend $3,250-$3,500 per month on known, fixed expenses. With other variable expenses (groceries, home repairs, car maintenance, etc) our monthly living expenses are ~$4,250-4,500. We each keep a couple hundred dollars per month for hobbies, lunches, happy hour, whatever else we want to do with it. In addition to our living expenses we've been we've been paying $1,250 per month for her student loans, which is well above the required amount on her IBR plan. Whatever is left over goes into a savings account to slowly build up our emergency fund. We don't have credit card debt, car payments, subscriptions, and rarely go out to bars/movies/restaurants. All of that said, we continue to see the amount that she owes on her loans increase. I ran the numbers the other day and the loans are accumulating ~$55 per day in interest. This comes out to $1,670 per month, so we continue to watch the balance rise even while paying the amount of another mortgage on them each month. I think it's important to save money for the future so I don't want to reduce our retirement contributions to be able to pay enough on these loans to just keep up with the interest. We're really at a loss of what to do that won't sabotage our future. Obviously PSLF would be the best way to tackle the debt, but those jobs are hard to come by in her field. If you're still with me, thank you. Any input on the following questions or other ways to approach this burden would be greatly appreciated. -Should we continue to try to just keep up with the interest to prevent the amount we'll have to minimize the growth of the loans we'll have to pay income tax on in 24 years when they're forgiven? -Should we pay only what is required under her IBR plan ($450) and put the additional $800 we would apply to the loans in a fixed income fund? This would allow that money to grow and would be earmarked for our massive tax bill when the loans are forgiven. We would owe more in tax though since they'd be growing much faster. -Does refinancing with SoFi or the like make any sense? Even at a modest 3% interest rate the loans would accumulate $750 a month in interest, our payments would probably be higher, and we'd be giving up the protections of the federal program. TL;DR- My wife has $315,000 (and growing) in student loan debt from vet school and even paying $1,250 per month we're not keeping up with the interest that is accruing. We'll never pay it off and are going to owe a ridiculous amount in taxes when the balance is forgive in 24 years. Thoughts? Help? Commiseration? [link] [comments]  |
| Is switching to PAYE worth it after 5 years of IBR? Posted: 08 Dec 2017 07:00 PM PST Do the benefits of 5 less years and only 10% discretionary income payment on PAYE outweigh 5 years' worth of interest capitalizing on IBR? Would the 3 years interest-free period restart again if I've already been on IBR? Does the 1 month standard payment in between plans still apply or could I get deferment/forbearance for that month? Ultimately applying for PSLF (which I know this all wouldn't technically matter) but I don't trust Dumpster Fire and his cronies not to get rid of the program and I'm nervous I'd be extra screwed I'd greatly appreciate your insight! :D [link] [comments]  |
| Private student loans for grad school abroad Posted: 08 Dec 2017 01:55 PM PST I'm planning to go to graduate school in France. Cost is $10,000/yr, and program is 2 years. The school does not participate in he US federal loan program. I'm looking for suggestions for private lenders for graduate school abroad. I would be borrowing between $10,000-$15,000. I'm looking for a fixed rate, and ideally a 5 year repayment period or the opportunity to pay the loan off early without penalty. [link] [comments]  |
| Posted: 08 Dec 2017 12:47 PM PST Hello all, thought I'd give this a try. I am a recent grad with ~$15,000 in debt from federal loans at 6%. Have been working since this Spring at a low paying hourly job. I have managed to save around $7,000 since then, but am going back to school to earn a Doctorate of Physical Therapy Degree. Currently, I'm paying around $120 a month towards my debt. The program I was accepted into should cost around $87,000 for 3 years (tuition and fees only) plus living expenses. I have the opportunity to become eligible for in-state tuition at around $60,000 if I receive a high enough GPA. I'm still on my parents' health insurance plan, but will be kicked out next year because of my age. Federal loans for students cannot exceed $20,500 per year, so I'll have to apply for supplemental loans. I have heard about graduate plus loans and believe their interest rate is 7%. My monthly expenses include food, rent, gas, car, and phone. How much should I take out each year? Should I pay off what I can towards my undergraduate loans before starting school in May? THANK YOU [link] [comments]  |
| Can Perkins Loan be cancelled concurrently with making payments towards PSLF? Posted: 08 Dec 2017 12:45 PM PST Quick question: My daughter's 6 month grace period is ending soon, and she works as an SLP with a public school in DC. She has applied for PAYE with her loan servicer (Great Lakes). It should be approved by next week. She won't have her first payment due until January (she's already made the first $5 payment). Today she faxed her PSLF Employment Certification Form to the DOE. My question: Because she's in a Title I school she qualifies to have 15% of the original loan amount + interest cancelled for years 1 and 2, 20% for years 3 and 4, and 30% for 5th year. She was told that she can't do the 5-year full-time teacher forgiveness ($17,500 cancelled) while she is making payments to qualify for PSLF...BUT what about cancellation of the Perkins Loan. We can't find information pertaining to the Perkins and PSLF. Thanks!! Y'all are so smart! Also, it's snowing here!!!!! [link] [comments]  |
| I thought I paid off one of my loans but my balance went up from 0. Posted: 08 Dec 2017 05:43 AM PST Hi everyone, I'm not as knowledgeable as I should be in regards to my student loans but I'm just asking for some help. I started paying off my student loans this year, and I was being pretty aggressive about it. I started paying off my loans targeting the ones with the highest interest rates. 2 months ago I paid off in full (I think) one of the bigger interest rate loans. I was pretty happy looking at a big fat 0 for that one loan (of 7). I look at my account today and I see $7.79 in a loan I thought I paid. Can anyone explain this to me? I'm not really that financially savvy. Thanks [link] [comments]  |
| Qualifying for SoFi's best rates. Posted: 08 Dec 2017 08:21 AM PST For those who have used SoFi (and similar lenders), what did it take to qualify for their best offered rates? On the other hand, what didn't qualify for their best rates (and how far away did you end up)? From what I've read, I think I'd be a good candidate (high free cash flow, good credit scores, reasonable total leverage, liquid non-retirement assets), but it's not clear to me what all they might look for and whether they calculate these stats the same way I do. I do plan on calling them to explore it further, but I would like to go in with a clearer sense of others' experiences before I do. [link] [comments]  |
| Bill would spike debt forgiveness for attorneys Posted: 08 Dec 2017 08:01 AM PST BOB McGOVERN; - bob.mcgovern@bostonherald.com Prosecutors and public defenders are the lifeblood of the criminal justice system, but a new bill being considered in Washington could push aspiring attorneys away from the low-pay, high-stress work and set off a public safety crisis. The so-called PROSPER Act, introduced by U.S. Rep. Virginia Foxx (R-N.C.) and U.S. Rep. Brett Guthrie (R-Ky.), would immediately eliminate the Public Service LoanForgiveness program. That program erases student debt for those who work for qualifying employers after making payments for 10 years. Bay State district attorneys and the Committee for Public Counsel Services use this financial carrot as a way to retain experienced attorneys and recruit law school graduates. With starting wages hovering around the $50,000 mark for both offices, the program is a vital way to appeal to attorneys who are often saddled with six-figure debt. "This program is a piece of the puzzle to solve our salary issues. Getting rid of it would absolutely be disastrous," said Anthony Benedetti, chief counsel for CPCS. "I think it's a public safety issue. It's a due process issue." The concern is that new attorneys will increasingly join the private sector or go it alone in hopes of finding a job that can help chip away at debt. Seasoned professionals who are nearing the 10-year mark could also leave, fearing that the promise they signed up for may not be there. "This is demanding and necessary work, and there is this bonus you get after 10 years if you dedicate your life to it," said Victoria Ranieri, 35, a supervising public defender in Lawrence who has been with CPCS for seven years. "I think we would lose a lot of qualified, talented people." A spokesman for the House Committee on Education and the Workforce, which introduced the bill, said "no current borrower would lose eligibility for loan forgiveness programs under the PROSPER Act." But in a March court filing, an Education Department attorney wrote that borrowers couldn't rely on approval letters for Public Service Loan Forgiveness as a final determination of eligibility. "They are taking the tools away that we need to have experienced prosecutors," said Norfolk District Attorney Michael Morrissey, who also heads the Massachusetts District Attorneys Association. "It doesn't make any sense." For Ranieri, who says she still lives with her parents and just recently paid off her trusty Honda Accord, what remains is an uncomfortable waiting game. "It's hard to overstate how much this program means to me and my colleagues," she said. "It could absolutely be a crisis if it goes away." [link] [comments]  |
| Posted: 08 Dec 2017 07:40 AM PST I received an email yesterday from Fedloan (my student loan servicer) regarding a secure message. I have received emails from them in the past, but it usually tells me to check my paperless inbox. This time it says: "This is a secure message. Click here by 2017-xx-xx 12:42 EST to read your message. After that, open the attachment." It has the fedloan logo and an email address ending with @myfedloan.org. The weird part is that when I click the link, it takes me to "securemessage.myfedloan.org/... " and it's asking me to "create your account to read secure email." The email attachment it tells me to open once the date has passed is an html file. I have not opened it. There is also nothing new in my paperless inbox when I login normally into the Fedloan website. Has anyone had this before? Or is this a scam to get my login? [link] [comments]  |
| Anybody know what’s happening with the student loan interest deduction? Posted: 08 Dec 2017 03:00 AM PST That's it. My question is in the title. Since the tax code is used to encourage behavior, I think that keeping the interest deduction would encourage people to keep paying their debts and thus be beneficial to society. Why isn't this being loudly debated in the media? My question is sincere though. Any tax pros out there who know the details? [link] [comments]  |
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