Should I throw (almost) all of my savings at my loans? Student Loans |
- Should I throw (almost) all of my savings at my loans?
- My total student loan amount keeps increasing
- Finally Prepared to Tackle Debt, but Need Guidance
- Is anyone else watching the 2020 presidential election with interest pertaining to student loans?
- Let me pick your brains!
- Parental Plus Loan Help
- Defaulted Loan, Garnishment Letter, Freaking Out
- Deferring Student Loans?
- Refinancing rates lower than 5.75%
- Refinancing a portion of debt?
- Federal Loans used for rent when taking Online Masters Program?
- Get off deferment while in school?
- I have loans serviced by Navient. I have to answer the question "Has your income significantly changed since you filed the tax return for the year reflected above? For example, have you lost your job, or experienced a drop in income?"
- undergrad looking for loans- unsure of where to turn?
- Divorced Parents and Parent Plus Loan denial
- Would anyone be able to verify these calculations for MFS and MFJ under PAYE?
- Student loan incorrectly reported in default, affecting my aid for grad school
- Cosigner Refinance
- Paying more than the monthly payment on a consolidated federal loan
- Need Help with Loans
- 4 Years of College, $0 in Debt: How Some Countries Make Higher Education Affordable - New York Times
| Should I throw (almost) all of my savings at my loans? Posted: 28 May 2019 03:22 PM PDT I'm in a shitty situation. I thought I did everything right, I went to an in-state state school, I listened to my parents when they told me they wanted me in on-campus housing (with required meal plans), I did internships in DC to make myself more marketable, I worked hard in school to get good grades, and every time I went to ask my parents about loans, they told me not to worry. I got checks in the mail from my school, I either gave them to my parents or I held onto them and put them in savings. I was very successful in school, have a full resume and, if I didn't have my loans, I would feel like the world was at my feet. In April I discovered that I had $110k+ due to Sallie Mae (at 12% interest rates) and today I learned I owe $20k in federal loans. (Now, to be fair, I'm a triplet...there was no way that I wouldn't have SOME loans) My parents got loans in my name and I was totally unaware. They didn't apply any of my scholarship money to the loans: this would've saved me thousands. Some of it went to me and god knows where the other ones went. My dad "has assets", we are rich on the outside, but he has lost a lot of money and I doubt he'll be able to pay loans for me and my two brothers (same age, went to private schools), on top of paying the rest of my 30-year old sister's loans. My house is worth $1.2 million and has a mortgage on it. I don't even know if selling the house is an option because of the mortgage. My dad explained that he makes money from his properties, but has loans on them, and is 2-3 million in debt, but that "debt is good" (NOT FOR A HISTORY DEGREE). My mom is a nurse. I've already thrown a lot of money at the Sallie Mae loans. I have 110k total now, all for a history/political science degree. My parents want me to completely forget about the loans and find a job that will make me happy. I'm already learning programming, losing weight to sell my eggs/join the military, finding full-time and part-time jobs, so I don't need any sassy "why did you waste 110k on a history degree lol" comments. I tried to work out a deal with my parents where I would pay only my tuition but they refuse to negotiate. I made a spreadsheet of the costs, asked my parents to pay the housing and meal plans they forced on me, and my dad told me I was on my own. I lent my dad money in the past (15k) and I applied those directly to the loans. Every cent I've earned in the past two months have gone to the loans. So I can do a few things:
Important but separate question: I have 13.5k in the bank. I really want my debt below six figures. Is it a bad idea to throw 12k? [link] [comments]  |
| My total student loan amount keeps increasing Posted: 28 May 2019 05:15 PM PDT I am a teacher and currently make an income-based payment each month. I noticed (a bit too late) that my total loan amount increased about 25k. I called Navient and was told my monthly accrued interest is $696 and on my current repayment plan I pay about half of that each month ($390). I am at a bit of a loss as to how I should proceed. As a teacher with loans that are mainly federal loans, I do qualify for the Public Service Loan Forgiveness Program, which forgives the remaining balance on my Federal Direct Loans after making 120 qualifying payments while working full time for a public service employer (i.e., a public school, in my case). This means that one option is to pay JUST my monthly interest in hopes that after 120 payments the rest will be forgiven. Mind you, as a teacher, paying nearly $700 on top of the cost of being a functioning adult (e.g., rent, car, food, bills) means that I need to pray nothing happens in my life that would have me depending on a savings account--- because I won't have one. The most reckless thing to do would be to continue to make these small payments (which are considered qualifying payments under the Public Service Loan Forgiveness standards) and let my total loan amount balloon, hoping that my remaining balance is forgiven as the Loan Forgiveness program seems to promise it will be. It seems odd a payment amount that causes my total loan amount to increase would be considered a "qualifying payment," however based on their standards any payment amount that falls within an income based repayment plan is considering a qualifying payment. Anyway, wondering if anyone has any advice... [link] [comments]  |
| Finally Prepared to Tackle Debt, but Need Guidance Posted: 28 May 2019 06:42 PM PDT I graduated with a BA in English in 2008 completely debt free, and I regrettably made the mistake of attaining a Masters in Education from NYU in 2010. The original principle was around $80,000 and today it has ballooned to around $115,000. For all of my 20s, I have been a teacher and have been on IBR with monthly payments as low as 0 to as high as $500 per month. When I turned 30, I transitioned to tech and have been a software developer since then. I had to start off with lower salaries with lousy benefits, but after getting two years of experience under my belt, I'm pulling in $100,000 a year before taxes, and I'm getting job offers starting at $120k right now. I've been paying around $1200 per month since last September, but nearly $700 of that is interest, and I'm chipping away at my debt, but I'll still be repaying my loans well into my 40s at this rate. With my income and future earning potential, I should be able to eliminate this debt before my 40th birthday, and I need help doing so. I've got a Roth 401k at about $3000 right now, and I put 3% of my after-tax pay into it. I don't have much savings besides this. This is my only debt. I pay off my credit card balances every week, and I've paid off my car note about 2 years ago. Currently my rent's about $1600 a month, but I'm paying a premium to live in a newer building that's a 10-minute drive to my job, but I could probably find an older place farther away from work for about $1000 - $1200 per month. I use YNAB and update my expenses nearly every day to track my spending. I cook meals and eat at home a lot, but I'm not a monk and like to go out a couple of nights a week. Here's the current break down of my loans via Navient, all Federal loans:
I'm finally in a position in my life to pay more than the minimum, and I'm willing to make some sacrifices. What do I do? Do I refinance with SoFi? Do I throw everything at those 8.5% loans? I'm not looking for an escape hatch or for some politician's promise to forgive my loans, but I want to do this more intelligently and get smarter with money in general. [link] [comments]  |
| Is anyone else watching the 2020 presidential election with interest pertaining to student loans? Posted: 29 May 2019 02:58 AM PDT So basically, I have 12.8k in student loans left. This is down from 58k when I started 3.5 years ago. I could pay off my student loans now, but it would leave me with very little savings but I'll probably have the money to pay them off in full in December/January more comfortably. I am contemplating keeping them until after the election if Elizabeth Warren or another candidate favorable towards forgiveness gets elected. Or at least wait until Super Tuesday next March to see which Democrat we're probably getting. My balance will be about 12k in December and my interest rates are really low, so I'd only lose about a year of interest. Is anyone else close to paying them off going to play the waiting game? I'd rather divert extra money to savings/investing anyway. The way I see it I could gain 12k if things went well, so the opportunity is better than the risk. [link] [comments]  |
| Posted: 28 May 2019 09:18 PM PDT My scenario is a little different than the usual story on this thread. I'm older 34, recently went back to school as a decision that was made between me and my wife. We had a financial plan set in order to accomplish the costs associated with school. My income while in school covered all of our living costs. And her income would be paying for the tuition necessary to get through school. Seems like a great plan … was working great… Until we got a divorce. The divorce is final all the dust is settled so to say that she's responsible for half the student loan debt is no longer an option. So now I'm in a scenario where I have student loans for a degree that's almost finished, and I plan on finishing. So my question going forward is one dealing with the most economical path to follow from this point. I'm not so much concerned with being able to handle paying off the debt, but more so with what would be the smartest move with the assets that I currently have. I'll have $90,000 in student loan debt. Various interest rates. This will be the balance at the end with my degree in hand. I take home 3500 a month. Bills take away 2000 a month What's left is for savings, food, travel, maintenance, any additional expenses...etc. I have $40,000 in savings I'll finish my degree next July. My income will increase and I'll be able to deal with the monthly payment associated with the debt. What should I do with that $40,000 in savings? Should I buy a house? Should I make one big payment towards my student loans? Outside the short term emotional relief a payment towards the loans would make, is there a smarter move for that money? My initial brainstorming says use that money as a down payment for a relatively inexpensive home. Acquire a monthly mortgage that is smaller than renting. Which frees up money to throw at the student loans monthly. And provides an asset that can provide money later on down the road as a rental. I appreciate the feedback that you guys have for me. I'd love to hear what insight you might have that could apply to my scenario. Thanks in advance!! [link] [comments]  |
| Posted: 28 May 2019 08:05 PM PDT My mother took out a parental plus loan when I was in college for $22,000 in 2004-2005. She'd made payments on it regularly up until it went into default in 2011 when she was layed off. She was out of work for a year. The loan company sold her debt to what I believe is a collection agency. When she became employed again (at a much lower wage) she began making payments again. The company that bought the debt has not set a term limits, and is charging her a collection fee as well as interest on the loan, and the principle. She pays $300 a month and they garnish her wages an extra $150. They keep calling her to renegotiate the terms. I don't currently have the money to pay for it. The debt cannot be transferred to my name (I tried). Any help of advice would be appreciated. Thank you in advance! [link] [comments]  |
| Defaulted Loan, Garnishment Letter, Freaking Out Posted: 28 May 2019 05:35 PM PDT I unfortunately stopped schooling in 2009 with the expectation of being pulled into a company full time. Unfortunately, I was instead laid off but still did not resume school. My latest loan is from 2009 and the current balance is about $75,000. I was going to DeVry University online. I have just received letters in the mail regarding garnishing my wages. I would honestly like to begin working on this debt, by my income is still fairly minimal of about $30,000 a year. Admittedly, I am freaking out at the moment, so please forgive me if I've missed any etiquette or am not including information I should have. Is there a group, company, individual whom I can speak with regarding my situation and the best way to handle it? I've found almost too much information online about different methods of payment but many of them seem to be thrown out of the window because I have defaulted. I'm not sure if these loans should be moved to a private loan, if I should attempt to fill out this Request for Hearing form, the disclosure form, absolutely immediately or if I have time to ask questions. [link] [comments]  |
| Posted: 28 May 2019 09:10 PM PDT Hey so I am going to graduate school in August. I have both federal loans and loans from Sallie Mae. Because I graduated last semester I have to start paying in July. How do I go about getting these loans deferred? [link] [comments]  |
| Refinancing rates lower than 5.75% Posted: 28 May 2019 08:07 PM PDT I have 11 nelnet loans all rates from 3-5.75%. The one from grad school is 20,000 at 5.75% and I'd like to refinance into a private loan but I'm not sure how to get a rate lower than that or if it even exists. I refinanced one of my loans from 8% to 6% last year when I started working. My credit is good (760) and I'm starting a new job at 80,000 next month. Overall I have about 72,000 in loans, but I am on the lowest payment plan so that my debt/income ratio is low. Is it possible to get a 4% or lower with refinancing? Also, if I'm planning to knock it out within a year or so, would a variable rate be a better idea? [link] [comments]  |
| Refinancing a portion of debt? Posted: 28 May 2019 04:08 PM PDT Currently have 4 separate government loans totaling ~170k with various rates that average to ~6%. When shopping refinancing companies, the provided rates are about the same my current average rate so there's no incentive to refinance the total amount. However, when only applying to refinance the highest rate loan (~40k at 6.6%), the quote is much more attractive at 4.88%. What am I missing? The 4.88% is the preliminary rate so curious if the rate will increase if the actual application asks for total outstanding debt (increasing debt to income ratio). Does anyone have experience refinancing a portion of their loans and have recommendations? Really hoping to get the average rate down, so would appreciate any guidance! [link] [comments]  |
| Federal Loans used for rent when taking Online Masters Program? Posted: 28 May 2019 11:30 AM PDT I just got accepted to graduate school, for an online masters degree, I live with my parents and am unemployed. Is it possible to use federal loans to get a cheap apartment? The reason I want to move out is because my parents are drunks and scream and fight all night, so it make it hard to concentrate on anything. When I was in undergrad my student loans paid for my rent, I went to an in person school, not sure if there's a difference when the school is online? [link] [comments]  |
| Get off deferment while in school? Posted: 28 May 2019 01:15 PM PDT I have 78k in loans across 5 loans from 08/09 and 12-15. I'm finishing up my last year of grad school and deferred until May 2020. Would it be better to just pay whatever I can into my loans now while deferred. Or get onto the IBR which is around $189 a month and start working towards the 20 year plan. I figure that jumping into the IBR now would save me a year in the 20 yr process. My loans are between 5.8-6.8% with the smallest being 2.8 and the largest being 30k. Should I just try to pay off the smallest 2.8k and 5.5k loans or just pay across the board now or during IBR? [link] [comments]  |
| Posted: 28 May 2019 04:59 PM PDT My income has gone up. How much is legally significant? I called Navient and they told me it was my discretion. They could not point me to any specific rules on the question. I would like to know my legal obligation. [link] [comments]  |
| undergrad looking for loans- unsure of where to turn? Posted: 28 May 2019 10:58 AM PDT hi fellas! im an undergrad who went to community college for 2 years and im now transferring to an art school. o: however, im trying to look into taking out student loans and unfortunately since im a first generation college go-er in my family, no one in my family really knows how student loans really work (i was fortunate enough to get good enough financial aid and my parents were kind enough to pay out of pocket for community college, so i didn't have to take out loans). my college requires me to do what seems to be a beginner loan counselling through the FSA and even trying to do that is a big head scratcher for me. all in all, im just trying to get even just a general direction of where i should go! i was looking into Discover student loans, as they seem to have okay rates (I've heard) and do cash back for students with at least a 3.0 GPA (I have a 3.96), and my friend recommended to me Sallie Mae, but I honestly have no idea what's good & what's bad when it comes to student loans. Any help is seriously greatly appreciated!! ♥ [link] [comments]  |
| Divorced Parents and Parent Plus Loan denial Posted: 28 May 2019 08:29 AM PDT Hi all, My parents divorced last year, and were separated for the previous four. I live with my mom. My mom has been denied for a parent plus loan. In order for me to qualify for the increased sub/unsub loans, would my dad need to be denied as well? [link] [comments]  |
| Would anyone be able to verify these calculations for MFS and MFJ under PAYE? Posted: 28 May 2019 07:53 AM PDT Would someone be able to check my calculations for a couple on PAYE choosing between MFJ or MFS? I do not mean to actually type each number into a calculator, but whether or not I am inputting the numbers correctly. I'm finding the difference between filing jointly and separately to be quite confusing. Also, am I correct in believing that even when filing separately we can still use the household total of 2 when deducting the poverty line? Spouse 1: 63,000 AGI: 63,000 in loans (37% of total amount) Spouse 2: 63,000 AGI; 108,000 in loans (63% of total amount) Combined: 126,000 AGI: 171,000 in loans MFJ Calculation: 126,000 - 16,910 x 1.5 = 100,635 discretionary (100,635 x .1) / 12 = 838.63 a month Spouse 1 (37%) = 310.29 a month Spouse 2 (63%) = 528.34 a month MFS Calculation: 63,000 - 16,910 x 1.5 = 37,635 discretionary each (37,635 x .1) / 12 = 313.63 a month each 627.25 a month combined Yearly Total: MFJ: 10,063.56 MFS: 7527 It seems that no matter which way I cut the numbers, MFS ends up about 2500 cheaper each year. Since our tax break with MFJ wouldn't be much better, I imagine MFS is the way to go? In that case, PAYE seems like a much better option than REPAYE, at least for the flexibility to file either way. I appreciate any help I can get! [link] [comments]  |
| Student loan incorrectly reported in default, affecting my aid for grad school Posted: 28 May 2019 01:34 PM PDT I am in grad school and all my undergrad student loans are in good standing and in deferral. I rehabilitated one loan last year that was transferred between three loan servicers in order to qualify for federal student aid and get the direct plus loan as well. I believe this servicer might have been the original loan company that I defaulted on before it was transferred to the company that I rehabilitated it through and then it was transferred to the new loan company that is now in good standing and in deferral. I feel like this is an error and it's incredibly frustrating that I have to work with the federal student loan people, transition and key bank to prove that I'm in good standing when it's been reported for the last 18 months that I am! Also how can this company report a default when they don't have an account with my and another company is servicing their loan?? Any tips and advice welcome. [link] [comments]  |
| Posted: 28 May 2019 12:28 PM PDT I have four loans through AES/PHEAA that my mom is cosigned for. She has been the one making payments for a while as I have not been able to make them due to some mitigating circumstances. We are on a variable interest rate which, frankly, is starting to get out of hand. We aren't making any headway toward the principal and I can't make any sense of AES's amortization schedule. My mom wants to refinance the loans in her name only at a fixed rate. Can she do that? From the limited information I can find, I'm not sure she can do it through a student loan organization. If that's the case, what are some other options? She has sterling credit (800 score), a six-figure income, and a pretty low debt-to-income ratio. I know she has some equity in her home but I'd like to find another route if that's at all possible. Thanks in advance for the help/advice. [link] [comments]  |
| Paying more than the monthly payment on a consolidated federal loan Posted: 28 May 2019 05:16 AM PDT This is probably a dumb question, but if I consolidate my federal student loans that are in default and sign up for an income-driven plan (my income is garbage), could I, in the future, voluntarily make higher payments than what would be due? I could see that as being the only potential downside. I want to get out of default ASAP so I can go and get another BS and beat the IRS from garnishing my wages. The other option, rehabilitation, would take too long. [link] [comments]  |
| Posted: 28 May 2019 07:57 AM PDT Posted on r/personalfinance but thought someone could steer me in the right direction. Throwaway Account. Have a decent amount of student loans that I hope to eliminate in the next couple of years. I (25M) work Full time in a large city where cost of living is high. My plan is to refinance higher interest private loans and pay a large amount towards refinanced Principal. It seems that consolidating my lower interest loans would not be as effective as they are reasonable rates. I want to decrease my monthly payments while giving myself an ability to pay these off faster. My question is whether I should pay a larger sum of cash $20K-$30K toward existing loans and then refinance or refinance and then do the same. Will a creditor give me a better rate if balance is lower? Salary - $70,000 Checking - $53,000 Savings or retirement - $0 Scheduled 1099 Income for remainder of 2019 - $26,500 - This will increase as I have other pending assignments that should pay another $10-15K and have closed. I work in the real estate sector that allows me to make commissions on top of my salary. All expenses - $3,900 per month including loan payments. LOANS: Discover - Four loans totaling $45,700 @ average rates of about 7.0% Nelnet - $27,000 @ lower rates of 3-4%. In deferment until August 2019. Sallie Mae - $12,700 @ average rates of 4.7% Attended private college and graduated in 2016 with a B.A in business. All loans other than Nelnet have been in repayment for over 12 months. FYI almost all of these loans are fixed rates. I should be better at doing this myself but in the world of refinancing loans, its tough to figure out the best method. I know that I should not just have this cash sitting around and that it can benefit my overall monthly expenses. Right now payments are about $800 PM. I pay more than minimum on Discover but more than half goes to interest. Anything would help. Thanks very much. [link] [comments]  |
| 4 Years of College, $0 in Debt: How Some Countries Make Higher Education Affordable - New York Times Posted: 28 May 2019 05:41 AM PDT |
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