Paid off my highest interest loan today! Milestone! Student Loans |
- Paid off my highest interest loan today! Milestone!
- How much do you pay a month on student loans?
- Will I ever be able to consolidate my private loans?
- Making an Early Payment?
- IBR for New Borrowers vs. PAYE (and aggressively paying vs. forgiveness)
- Should I just wait for interest capitalization at this point?
- complicated situation - deciding between paying & forgiveness
- Pros and Cons of different paths forward with my debt.
- 1098-E Showing 2018 total payments to be 63% interest?
- Going back to college for BSN and taking out loans for the first time
- STudent Loans and Tuition Refunds
- Will refinancing my FFEL loans affect IBR payment?
| Paid off my highest interest loan today! Milestone! Posted: 06 Feb 2019 11:43 AM PST I got my tax refund yesterday and my paycheck today, so I was able to make a doubly big payment this month to knock out one of my loans! I've been using Dave Ramsey's "Debt Snowball" method, so I pay the smallest loans off first, but it just so happened that my next smallest loan was also my highest interest loan. It feels great to kick this one to the curb. With this payment, my total student loan debt is now under 40k! It feels great seeing my total start with a 3 instead of a 4. Today is a good day! [link] [comments]  |
| How much do you pay a month on student loans? Posted: 06 Feb 2019 07:03 PM PST I have a masters degree and make about 100k a year. My loans come off of grace period next month and my monthly payments between all of my loans (federal + 3 Sallie Mae loans) will be about $1500 a month. I have about 290k total student loans but 220k of that are federal loans and my employer qualifies for public service loan forgiveness which is a plus so I'm currently on IBR for my federal loans. [link] [comments]  |
| Will I ever be able to consolidate my private loans? Posted: 06 Feb 2019 09:07 AM PST I've had many issues in the past trying to get my Wells Fargo student loans consolidated. Right now, 1 of them is at an 8.5% interest rate, and the other 2 are at a 9.99% interest rate! When I accepted the loans, they were at a 7.2%, and 8.2% respectively. My credit right now is pretty awful (around 500) due to some job changes that dramatically reduced my income. I've failed multiple times at getting approved even with a cosigner, so I'm looking for options. Is there any reason I would want to combine my federal and private loans? I rougly have 46K with Nelnet, and 46k with Wells Fargo right now. Any advice is appreciated! [link] [comments]  |
| Posted: 06 Feb 2019 09:01 PM PST Hi everyone. I'm beginning repayment on $30k of government loans soon and I had what may be a stupid question. A payment is due on 2/10, but I have the money right now, and wanted to make the payment today. A couple of questions, though. One, it looks like my options are "Make an Overpayment" or "Specify for Each Loan." I'm worried if I make an 'overpayment,' then it'll be like "cool, thanks!" and count it towards my repayment, but also say I have a payment due on the 10th anyway. Is that something that would happen? Should I wait for the 10th? Or would it be fine to make a payment? The second problem with this is that I am able to roughly guess how much my monthly payment will be based on the numbers I have (between $300 and $350) and I want to pay about $400. Just to get that snowball rolling, hah. I'm not sure of the amount though, because technically, I'm not in repayment until the 10th, so right now, it says "Amount Due: $0.00." If I pay too little should I go ahead and make a payment, will that hurt me? If so, how badly? Thanks everyone. Best of luck with the rest of you paying loans. [link] [comments]  |
| IBR for New Borrowers vs. PAYE (and aggressively paying vs. forgiveness) Posted: 06 Feb 2019 07:15 PM PST So here's my situation: I started undergrad in 2013. I took out my first federal loan in August of 2014 (so I qualify for IBR for New Borrowers). I continued taking out loans during undergrad and through grad school until May 2018. I've payed off all my private loans as of last year (yay). My current tax filing status is single. I'll likely be married within the next 3-4 years. I'm unemployed at the moment, but when I get hired I'll likely be making about 50k to start and reach about 90k within the next 10+ years. There's somewhat of a chance that I'll find myself in a PSLF-eligible job in the next few years. My only other debt is a $14k car loan. My credit is very good. Current federal loans (newest to oldest): Direct PLUS -- $68,041 -- 7% Direct Unsub -- $21,906 -- 6% Direct Unsub -- $19,670 -- 6% Direct Unsub -- $3,740 -- 4.7% Direct Unsub -- $3,496 -- 4.7% Direct Unsub -- $4,229 -- 4.3% Direct Unsub -- $4,225 -- 4.3% Direct SUB -- $2,750 -- 4.3% Direct Unsub -- $4,080 -- 3.8% Direct Unsub -- $4,026 -- 3.8% Total: $136,896.66 :( According to the Repayment Estimator, IBR for New Borrowers and PAYE both appear the same to me. I'd pay ~$120k over 240 months with payments from $265-$815. I'd have ~$185k forgiven and have a horrendous tax bomb. The only difference I can see is that I'd have to consolidate to enroll in PAYE. My questions:
Thank you so much for any insight you can provide. [link] [comments]  |
| Should I just wait for interest capitalization at this point? Posted: 06 Feb 2019 02:36 PM PST I have student loans that are entering repayment later this month. I've been told capitalization is a bad thing and that I should avoid letting interest capitalize if at all possible. However, I'm pretty sure that making a lump sum payment before capitalization is actually worse than just waiting until after it happens and THEN making the large payment. Can anyone help me out and confirm that I'm not going crazy? Basically, if I were to submit a payment today (before capitalization), all my money would go towards interest that has been accruing since I started school and took out the loans. This is because my servicer requires that all interest is fully paid before any money can go toward the principal of any loan. In my case, I have interest spread across all loans at different rates. But if I wait about a month, all of my interest will have been added to the principals of each loan and then I could make my lump sum payment and target only the principal of the loan with the highest interest rate, which is ultimately the fastest way to pay off the debt (as far as I know). Here are my loan balances/interest rates if it matters at all:
Any guidance here is appreciated, I just want to make sure I'm not making a big mistake. Thanks in advance! [link] [comments]  |
| complicated situation - deciding between paying & forgiveness Posted: 06 Feb 2019 10:24 AM PST I am in a pretty complicated situation vis-a-vis my student loans. I currently have nearly $400,000 in consolidated loans at a 7.1% rate and my AGI is ~60k. I'm about 5 years into repayment under IBR, so I'm anticipating another 20 years of repayment before getting the balance forgiven. However, this year I expect to see a raise of about $40k. My spouse makes ~$130k. I also am the single largest shareholder of a business that has current revenues in the mid 7 figures and is growing extremely rapidly. I would be surprised if I do not see a 7 figure windfall or a substantial increase in income from dividends at some point in the next 20 years. I do not currently own a home, but my spouse does. I have not been eligible for refinancing at a lower rate due to my debt/income ratio. I have identified 3 potential paths forward. 1) pay ~3k mo for the next 20 years and have the loan paid off; 2) pay the bare minimum under IBR, then take forgiveness; 3) forego the raise in favor of a 0% interest loan through my company/employer, such loan would be used to pay off the debt with pre-tax dollars, converting the loan slowly to a 0% loan with my company. My analysis seems to indicate that option 1 is vastly inferior, resulting in total earnings minus loan-related-expenses over the 20 years being approximately $175k higher than the other two options. Option 2 would see me plowing money into savings or other assets that I would be able to liquidate after 20 years, when I'd be looking at a tax liability of about $300,000 due to the forgiveness. Option 3 has the substantial benefit of halting the pernicious effects of compound interest on my loans. I would have to pay an additional amount in taxes each year because the imputed interest would be taxable income, and then I would also have to pay a lump sum of about $173,000 after 10 years when the company forgave my loans. My analysis shows a negligible total 20 year earnings minus loan-related-expenses difference between options 2 and 3. However, both scenarios come with some really substantial risks. It's further complicated by the fact that I consider it reasonably likely that there will be some measure of student loan reform in the next 5-10 years, but what it would look like is probably too nebulous to significantly factor into the analysis. So I was hoping to come here and get a bit of an outside perspective on my thought process here. [link] [comments]  |
| Pros and Cons of different paths forward with my debt. Posted: 06 Feb 2019 02:02 PM PST I currently have $64k in student loans from undergrad. I work at a non-profit so I am PSLF qualified and have made almost 5 years of certified payments on the loans, but the balance has increased the entire time due to the low payments and the compounding interest. I have wanted to get a graduate degree for quite some time but have been deterred by the cost and fear of additional loans. I'm on the verge of a major life change because my partner is from Denmark and will be finishing his time here in the US in 2021. It makes sense for me to go with him and I've found graduate programs there that I would love to attend that cost far less than American programs. The problem is, finding a PSLF qualifying job while abroad is hard, so it's hard to count on having that after graduate school. I feel like I have two options: 1) Stay in my PSLF job until Summer 2021, enroll in grad school in Denmark, finish the degree and try to get a PSLF job abroad (HARD) to finish qualifying payments in 2025 and have all debt (including loans for graduate school) forgiven. 2) Quit PSLF job now, take higher paying non-PSLF job, change payment structure on loans (pay more) but also save for grad school, enroll in grad school in Denmark, try to find a similar high paying job and finish repaying loans someday? Having $80,000 forgiven seems worth the uncertainty and hassle of trying to find a PSLF job after school, but the precarious nature of PSLF makes me anxious. I'm fairly certain I could be making 10-20k more a year in the private sector, which would make higher loan payments easier but not entirely comfortable. I eventually want to buy a house and have kids and PSLF seems like it would make that possible sooner. Do any of you have any suggestions? [link] [comments]  |
| 1098-E Showing 2018 total payments to be 63% interest? Posted: 06 Feb 2019 10:02 AM PST I was looking at my 2018 1098-e form. I have about 42k in loans, ranging from 6.8%-8%. I ran the interest calculator to show me a monthly interest amount, and it displayed $236/month expected interest payment. I pay, on average, $639 a month. 649x12 = $7668 2018 interest paid based on 1098-E: $4776 7668-4776 = $2892 total principle paid? Based off of the interest calculator on the Navient site, I should have paid closer to $2832, but my total interest paid is $4776? Any reason why this would be so much more? In 2017, my total interest payment was $5.2k. This just seems like a crazy amount to be paying in interest when they only range from 6.8-8% and only owing in the 40's. Thanks in advance. [link] [comments]  |
| Going back to college for BSN and taking out loans for the first time Posted: 06 Feb 2019 01:39 PM PST Hi guys, So, I graduated last year with a Bachelor's in Psychology (I know, it wasn't the best thing to major in, but that's a whole other story). I previously majored in Nursing and switched. Ever since I graduated, my family (full of nurses) has been telling me to go back to college and "finish" nursing. And after months of hints, nagging, and talks, I finally gave in - I mean, they do make more money and the job is stable. So, in regards to student loans: I have been fortunate enough not to have taken loans out for my first Bachelor's. But because of that, I'm at a loss on how to approach it now. I've done FAFSA and the EFC for 2018-2019 was 6802, while the EFC for 2019-2020 is 0. I think I'll get about $10,000-$15,000 in federal student loans (I don't really know how it works or if I'll even get that much, but I know I won't get any grants because I already have a Bachelor's). The total cost of the BSN program (at a for-profit school because that was actually the cheapest program I could find in my city) is $40,750. I would have to pay in a 3 month basis. Roughly, $2,600 for the first month, $1,300 for the second and third, and then the cycle starts again until the end of the program 1.5 years later. So my dilemma is; where should I go to get private student loans? Or should I try to get my single mother to take out Federal Parent loans (how do you even get those?)? Should I get all of the remaining money in one lump sum loan from one organization all at once or borrow throughout the time as needed? My mother graciously offered to help pay for the second degree, but she can't really give much and I will not be working during nursing school. TL;DR: I need to get $40,750 in nursing student loans and I won't be working at the same time. Where should I go and should I borrow as much as possible all at once (can I even do that?)? Sorry for the length and thanks in advance! [link] [comments]  |
| STudent Loans and Tuition Refunds Posted: 06 Feb 2019 12:24 PM PST To preface I did some googling and called Discover but the rep i spoke to didnt give a clear answer. If i were to withdraw from a class right now, I would get a 50% refund on it. Where would that $400 go? To Disover, would it be applied to my payment? [link] [comments]  |
| Will refinancing my FFEL loans affect IBR payment? Posted: 06 Feb 2019 10:01 AM PST If I refinance my FFEL loans, will that affect my IBR payment? [link] [comments]  |
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