Finally learning about finances, and have become excited about the prospect of investing and FIRE — but owe FedLoans $126k. How should I approach this? Student Loans |
- Finally learning about finances, and have become excited about the prospect of investing and FIRE — but owe FedLoans $126k. How should I approach this?
- Federal Government Makes Money Off of Student Loan Interest Loophole
- Missed IBR Deadline
- File tax extension to use last years taxes for student loan payments?
- Navient appears to have misallocated my loan payments. What can I do, if anything?
- Trying to finish my education, loan free until now, don't know what to do.
- PAYE Application
- Can my bank account be levied if I start rehabilitation?
- ESCI vs MyFedLoan
- Bankruptcy and applying for student loans?
- What to do with my undergrad loans once I start grad school this fall?
- The department of education took my entire refund
- Medical resident considering loan forgiveness
- Private loans for new credit?
- NSLSC (Ontario) still says "in repayment" but I already paid off my loans
- Navient rate reduction program
| Posted: 02 Apr 2019 04:12 PM PDT Over the last few months, I've finally been educating myself on finances and investing (kick-started by reading Rich Dad, Poor Dad, which I wish I read earlier) and I've been living frugally and saving money with the dream of investing or growing other streams of income. But the thing I've neglected for so long is that I owe more than $126k in FedLoans. My mistake is that I ignored what would happen to the interest if I simply paid the minimum payments over the last few years, and now the total has ballooned. I am on the PAYE repayment plan that would forgive what's left of it while I'm in my late 40s. I have no credit card debt and I have $31k in an online savings account that serves as both my emergency fund and savings pot for investments. I also have $20k invested in between my 401k and Roth IRA accounts. While my job looks good on a resume, I only take home about $3000 a month as a 30-year-old male living in Los Angeles. I also help my mom with money and help pay for her chemotherapy since she has brain cancer. Here is a snapshot of what I owe FedLoans: Direct Sub Stafford Loan: $2,363 at 5.60% interest Direct Sub Stafford Loan: $2,363 at 5.60% interest Direct Unsub Stafford Loan: $2,426 at 6.80% interest Direct Sub Stafford Loan: $929 at 5.60% interest Direct Sub Stafford Loan: $5,547 at 4.5% interest Direct Unsub Stafford Loan: $2,263 at 6.8% interest Direct Unsub Stafford Loan: $21,257 at 6.8% interest Direct Student Plus Loan: $59,564 at 7.9% interest This amounts to a total balance of $126,292, and $29,575 of that is from interest. From what I'm thinking, here are some of my options: A. Immediately wipe out the smaller loans (everything but the last two in the list) with the money I've saved and still have some for an emergency fund B. Keep making the minimum payment for years while using the money I have toward real estate investing or side hustles to boost my income, and keep it growing C. Put my savings toward the larger loans My brain is leaning toward option A, my heart says option B, and option C seems doable to cut down the growing interest. What do you guys think, and are there any other options that I'm not seeing? Any advice is appreciated [link] [comments]  |
| Federal Government Makes Money Off of Student Loan Interest Loophole Posted: 02 Apr 2019 06:35 PM PDT Semi-rant warning Tell me if this makes any sense whatsoever:
Here's my problem - There's at least a month extra of interest sitting on my account since I've entered repayment. I have called my loan servicer (Fedloan), and basically they said that's how the Department of Education does business. Here's a timeline:
In other words, somehow I'm responsible for the interest accrual from 11/09-11/30/2017 despite the fact that I've been on REPAYE since the beginning of repayment (11/09) with a full interest subsidy. What gets me is this: If I had a standard repayment plan, I would be responsible for the interest from 11/9 to 12/13 (the due date), but since the government is responsible for the interest, they can do what they want and only pay the interest AFTER the bill (i.e December onward). Basically, if you qualify for the interest subsidy from the beginning of repayment, there's no way to get around the fact of the government screwing you for a month of interest because apparently the payment plan doesn't kick in until the first due date (12/13). This is despite the fact that I already applied and was approved for the REPAYE plan long before the beginning of repayment. smh Semi-rant over TL;DR - Somehow, the federal government's student loan interest subsidy applies to interest after the bill, not the interest that is currently on the the bill even though they basically agreed to cover the interest on the bill. [link] [comments]  |
| Posted: 02 Apr 2019 09:26 AM PDT How screwed am I? I missed the deadline for my reapplication for the IBR, it was a week ago. E-mail went to an account I haven't been using in a while and I didn't see it until now. To make matters worse, I married last year and my partner doesn't have an FSA account, and we're now waiting on the SSA to authenticate his account. Without IBR my loan will jump from around $800 to $1850 in May, apparently. This is well outside what I can afford, the $800 is already pushing it. Any advice on what to do would be greatly appreciated. [link] [comments]  |
| File tax extension to use last years taxes for student loan payments? Posted: 02 Apr 2019 08:46 PM PDT Hi all! My student loans are being recalculated the last week of April. I'm thinking of filing for an extension in order to have my student loans calculated based on the 2017 return. Does this make sense? Thanks! [link] [comments]  |
| Navient appears to have misallocated my loan payments. What can I do, if anything? Posted: 02 Apr 2019 03:37 PM PDT I recently had my old stafford student loans transferred from Navient to Fedloan as direct loan consolidation. I had 2 stafford loans and two private loans. I was under an IBR for my stafford loans and my payment was very small. Upon closer inspection, I believe I discovered that the payments Navient was qualified to charge me on my private loans was being collected in full but applied to my stafford loans. This means a couple of things A: where they may have been able to charge me a few dollars under the IBR for my stafford loans they were charging me much more. B: all moneys collected were being applied to my stafford loans and my private loans were not being paid on at all So I saw Navient was being sued for missallocation of loan payments and wondered if that's exactly what they did to me for years. Does anyone know if this is normal and legal based on fine print buried deep in the MPNs or if I should file a complaint and try to get legal folks involved? [link] [comments]  |
| Trying to finish my education, loan free until now, don't know what to do. Posted: 02 Apr 2019 07:16 PM PDT So I don't usually post on places like this, but I'm really looking for a lot of opinions on how to handle what could be a difficult situation, that I've never had to experience before. So here's the short version: I live in Pennsylvania and have been going to community college for the last several years, paying my way without any loans or assistance past federal grants. Last year, I graduated debt free with my associates degree in liberal arts. My end goal has always been to transfer to a four-year place to finish with a degree in my chosen field, which is film production. You can see where this is going to be kind of an issue. I want to get out of PA and go to school in California where the heart of the industry is, and the choice school I've found that seems like it would be a good fit for me is CSULB, which is a state school. However, because I don't qualify for resident tuition, I'll have to pay OOS rates which is over $17000 per academic year. The good news: I qualify for the max amount of the Pell Grant, a small grant, and federal work study, which gives me $9,995. The bad news: everything else I'm being offered are federal loans. One is a subsidized one for $5500, the other is unsubsidized at $7000. This is the only way I'll be able to pay for the rest of my tuition. I will not be living on campus, and I don't have any other loans or financial obligations right now like car payments. And luckily, I'd only have to be in school for two years, but still. I'm looking at around $25000 after I graduate, and that's just for tuition, not any other expenses. I feel trapped and unsure because I've never had to make a choice like this and I don't want to make the wrong one. I'm tired of living in Pennsylvania, and state schools here don't seem like they'd be much better financial-wise; at the very least, Long Beach is close to LA where the heart of the film industry is. I don't feel like going back to community college would be much better because all I'd be able to get is a technician certificate, but at this point I'm not sure what the right choice is. So I'd like to hear from you guys — maybe other film majors with student debt — who can give me insight, because honestly, I feel stuck. [link] [comments]  |
| Posted: 02 Apr 2019 03:14 PM PDT Hello all. I am seeking some advice on the timing and logistics of signing up for the PAYE IBR plan. I will be graduating at the beginning of this May from professional school, with eight groups of loans (mixture of Direct Unsubsidized and Direct GRAD Unsubsidized loans). I have gone through the repayment plan calculators and the PAYE plan by far gives me the lowest total payout, but I just had a few questions about the logistics behind getting started on the plan.
Thanks in advance for your help, and I'm happy to provide any further details if needed! [link] [comments]  |
| Can my bank account be levied if I start rehabilitation? Posted: 02 Apr 2019 03:12 PM PDT One question I forgot to ask from my previous post was, if I start to rehab it to bring me out of default, can they still take all of my money from my checking account? Or if I started working, my wages? I'm trying to consider if I should grab all the money while I have a chance and it's still there since they came for my refund. Thanks! [link] [comments]  |
| Posted: 02 Apr 2019 12:42 PM PDT This may be a stupid question but I can't seem to find the answer - even after calling ESCI. I've been paying off my loans from MyFedLoan for the last year. I just received an e-mail that I owe more money to a school (through ESCI) that I had thought I had been paying for already. I've never heard of ESCI before and was under the impression that MyFedLoan was a complete collection of my student loans. What is the difference between ESCI and MyFedLoan and why do they have this extra charge? It says something about Perkins but I already have an account (for the same school) on MyFedLoan. I'm pretty confused as to why this company is holding a separate loan charge apart from all the rest. Also, all of MyFed student loans show up on my credit report but this one does not. Can anyone shed some light on how this process works? I appreciate any help, thank you! [link] [comments]  |
| Bankruptcy and applying for student loans? Posted: 02 Apr 2019 02:35 PM PDT I filed bankruptcy a few weeks ago because of unfortunate circumstances with medical bills and credit cards i've been trying to live off of while going to college full time. My credit score is at a whopping 450 now. Anyways, I am supposed to be graduating college this summer but need about $5000 for the classes i have left to take. Today I applied for a private student loan for the summer, which denied me before even asking if i'm going to use a cosigner or not. Then applied for another one at another lender with the cosigners info (who has over a 700 credit score) and they denied me as well stating it was because i was previously denied elsewhere. Not sure what other options i really have left as far as paying my tuition this summer. I now have to live with my mom since i cannot afford living anywhere else and she makes too much money to allow me to have any financial aid/grants. Not sure if its important to note, but i have a 3.9 GPA at the university I am at... you would think I would get offered some kind of scholarship but nope, nothing. Anyone have any ideas as far as getting any kind of student loan in my situation? [link] [comments]  |
| What to do with my undergrad loans once I start grad school this fall? Posted: 02 Apr 2019 02:18 PM PDT I have one subsidized loan of $3000 and one unsubsidized loan of $2000 - both have interest rates of 3.61%. Am I able to pause both of these loans while I attend graduate school? Or will they still accrue interest? What is typically recommended for someone in this position? [link] [comments]  |
| The department of education took my entire refund Posted: 02 Apr 2019 05:22 AM PDT A little background about me. I am currently in my mid 20s. Woman, single with no kids (no dependents) currently living with my mom. Back when I was fresh out of high school at age 17/18 I was basically pushed into doing something, anything (as in school/college wise) and so I chose cosmetology school. I ended up really disliking it and dropped out about half way through. Didn't give notice but I was really going through a lot since my family was/is very poor. We had to move like 9 times since I was 17. So I fell prey to a loan without fully knowing at the time what it was and what they had the ability to do. Especially since I am a daughter of 2 immigrants that never went to college themselves. So after so many years, it defaulted. Due to my illness, I have not had a job since Cosmo school from age 17 to age 23. I've never received any notice from them up until a few months ago. Because I started working in 2017, just a few part time jobs and I was job hopping because I can't maintain a job. I ended up having like 5 W2's all with very low income still when totaled up. I haven't even reached 10k when all was said and done. So I guess they found me and just a few months ago I started getting their letters and now I owe $10k (with interest and fees) and my refund was only about $1k but they took it all. So now I'm pretty screwed since I'm just living on my savings and pretty much have no one to help me.... My fears are- I'm not currently working and I haven't for the past 10 months. I don't have money to pay and I know the interest accumulates. The ONLY money I have is my bank account. I have no car, no house, nothing else besides the clothes I have and my bed. This literally shocked me and could prevent me from getting any help like social security or something else. They could garnish my wages (when I do work) or take it out of my bank account So I desperately need help. I know next to nothing about any financial stuff. I acknowledge I am extremely naive in these matters and I have no clue what steps to take besides getting at least some job but even then I fear it may not be enough. I was thinking of getting all of money out before they get to it. So at least I wouldn't be broke and really need it. How can I change my taxes so they stop witholding SO MUCH from my checks?? At least I would get them before I file my tax return . My jobs have only ever given me W2's but never have I seen a W4. Thank you [link] [comments]  |
| Medical resident considering loan forgiveness Posted: 02 Apr 2019 08:05 AM PDT I have been paying PAYE plan during 3 years of residency. Is it too late to apply for loan forgiveness for those years? Where can I see if my institutions qualify? Thanks for any help! [link] [comments]  |
| Posted: 02 Apr 2019 06:17 AM PDT Are there any private loans for people with bad/new credit? I don't have a co-signer available. [link] [comments]  |
| NSLSC (Ontario) still says "in repayment" but I already paid off my loans Posted: 02 Apr 2019 01:11 PM PDT I paid off my student loans two weeks ago and it says I owe $0.00 but my NSLSC account still says I'm in repayment. When should I expect the status to change? Is there also a letter they send me to confirm that I paid off my loans? [link] [comments]  |
| Navient rate reduction program Posted: 02 Apr 2019 05:35 AM PDT Hey guys asking for a friend of mine, what information does navient need for the rate reduction program? Trying to get things ready for her while she's at work. For reference Her income: 25,000 Kids: 2 Does marriage matter? She's separated but not legally Loans: 80k private, 8% interest rate, currently paying 800$ a month. She's drowning, lives with her parents cause she can't afford anything because of the loans Do they need W2, stubs, ECT? [link] [comments]  |
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