Unpopular opinion Student Loans |
- Unpopular opinion
- 72 with $60,000 Private Student Loan
- Fedloan modifying principal and interest balance numbers on a near daily basis
- Happy New Years! Here, is my analysis of my student debt (Yes, I stay up at night thinking how screwed I am every night).
- IBR Plan and Paying Off
- How do I find what my interest rate will be when payments resume?
- Using Stocks/Investments for Future “Tax Bomb”
- Navient restarted my wife's repayments in November, 2020. WTF?
| Posted: 31 Dec 2021 03:55 PM PST I feel like this is an unpopular opinion because most people want loans forgiven. I'm fine with paying back my loans. I agree, I took the loan and I am willing to pay it back. But keep the interest at 0%. I'm willing to pay it back but I'm not willing to pay 6.8% interest. Let me pay the principle and stop allowing banks to make money off my education. I've been fortunate enough to be working through the pandemic and have continued putting money on my principle so if interest does kick back in, it's on a lower principle. I've made such a huge dent in it and I can finally see the end of the tunnel. Screw your high interest rates. [link] [comments] |
| 72 with $60,000 Private Student Loan Posted: 31 Dec 2021 10:04 PM PST It is our hope you can offer advice as my son pointed me to this page and helps we to write this request. My wife and I are both 72 and have been married for 51 years. After raising our 3 kids who all joined the navy she became a nurse at 55 and fulfilled a lifelong dream. Isn't it amazing she did it? We financed through private loans, now at 7.5% for about 60K remaining owed despite our many years of paying over almost 600/month. We are 72 and still pay almost 600 per month. My wife is diagnosed with a very serious and realistically terminal condition and cannot work in any way. I am also in declining health and spend my day caring for her. We have some limited other assets, though less than we wish. As you can guess, we cannot afford 600 per month in student loan payment. We also have high medical costs. Our income is limited to social security as we never earned a pension. It seems important to remind that the loans are private and, although she was a nurse, she worked in a for profit organization. Based on the NELNET account, the information is in her name and my name never appears. This loan situation ad monthly payment creates stress for us both. We do not understand many terms used on these pages and would appreciate simple answers to the follwoing: Is there any way we can seek forgiveness for the loan? Reduced monthly payments equivalent to our income? Refinance the loan to more favorable terms? What will happen should my wife pass? Thank you for any kind advice. Please forgive my errors as I try to write in the style of the pages. [link] [comments] |
| Fedloan modifying principal and interest balance numbers on a near daily basis Posted: 31 Dec 2021 10:20 PM PST A few weeks ago I had logged into Fedloan to check my account ahead of February, before forbearance was extended again, and I noticed my loan balance numbers looked off (I could have sworn I targeted the last few payments I made last year to knock down more than one, but I only have Fedloan's payment distribution info to go off of) Since I noticed that discrepancy I've been logging in more frequently to check on the balances, and almost every time I've logged in the Principal balances of the individual loans keep changing, while the total principal and interest balances remained largely the same. This has included loans flipping statuses from Forbearance to delinquent or repayment, and the one loan that did show as paid off now shows a balance of $0.72 I called over to Fedloan multiple times, and each time the person I spoke to said that some of my loans are in the process of being discharged due to the original school I acquired those loans for shutting down in 2016; and because of that they're rebuilding the payment history and re-applying payments. Today I logged into the mobile app, and my total balances are more than double what they were two days ago, and when I log into the website I see completely different numbers for total principal and interest balances, and totally different numbers for the individual loan balance numbers What's distressing to me is there's no logs for these changes, and when I call the agent can only seem to confirm what the numbers currently show, and that things are still in flux, and I'm worried that I would be unable to prove any incorrect or malicious adjustments made by them Is this normal behavior when a portion of loans are being discharged? Do I just need to be patient and wait for the discharge to fully process (no clear estimate on when that will be)? I've begun taking screenshots and copying down the balance numbers, and I requested a statement of account last week before the latest round of discrepancies. What next steps should I take in this situation or be preparing for? Should I reach out to a lawyer? [link] [comments] |
| Posted: 31 Dec 2021 06:17 PM PST Hey everyone, I have $196,661.00 in public student debt at an average of 0 % apr due to Covid. After Biden lifts the student debt 0 % rate the rate will be 5.69 % apr (5.85 % compounded daily, effective interest rate). I have $ 78,435.74 in private student debt at an average of 11.24 % apr. (11.89 % effective interest rate) (Interest for student debt is compounded daily). Due to Trump and Biden's student debt policy of 0% interest rates I have saved over $24,630 in student debt by may. (It's been 2.17 years from march 2020 to May 2022 (when the policy ends) (So 2.17 * 5.85 * 196,661.00 is $24,242.03). I am also borrowing an additional $ 27,193.00 to pay for tutition this spring. So after I graduate this may, I will have $ 302,289.74 in student debt, .... Here are my thoughts, The goverment debt is not an issue, because I will enroll in PSLF as and work for the goverment for 10 years to have the debt forgiven. It will work to allow $ 223,854.00 in being forgiven, (about bonus $22,385.40 per year) (I know that it will not be forgiven until the end, however, if I complete 10 years of grinding I will be entitled for the rest being forgiven). The private student debt I will try to refiance once I begin working my first job after graduating. I will likely enter the work force between October 2022 and January 2023 making $55,000- $80,000 per year (GS 7 or GS 9/11 (if I am lucky). .... Public Service Loan forgivness is 10 % of the AGI subtracted by 150% of the poverty level. AGI is wages pre tax so $55,000 between $80000. 150% of poverty level for 1 person is 19,320. 150% for 2 people is $26,130. ( To compare if I get married, just to pay less under the payment driven public forgiveness). So, monthly payments should calculate between $ 55,000 - $ 19,320 = $ 35,680.00 $35,680 * .15 /12 = $ 446.00 $ 80,000 - $ 26,130 = $60,680.00 $60,680.00*.15/12 =$ 758.50 So, montly payments would be between $ 297.33 and $ 505.67. Assuming no increase in wages over 10 years, repayment would be $ 35,680.00 or $ 60,680.00. I would save between $ 188,174 to $ 163,174 if I started at G11. ( I think the break even point of a private job and a goverment job is $ 110,000-130,000 a year) (It would take the additional salary to be able to pay off the student debt). ... I don't think I can get married in 10 years of payment under AGI, because income based forgiveness increases with spouses wage. For instance, if I work a goverment job, and marry someone who makes more than I do like a nurse, I would have to pay more because my spouse makes more than I do. I don't think my spouse would contribute to help pay my goverment student debt, so likely I will have to wait at least 10 years before getting married. .... After Taxes I will likely make between $ 41,000 & $ 57000. I am thinking my annual expenses will $ 18,000 in rent (water, electricity, and rent). I will likely also spend $ 1,600 on car insurance per year. I will also likley spend $ 2,000 on health insurance per year. I will also likely have $6,000 in annual expenditures ($500 per month). I will spend $ 297.33 and $ 505.67 in monthly student debt payments (goverment). ... Before the private debt expenses I would have about $ 8,048 left under the job paying $ 55,000 and $ 18,000 under the job paying $ 80,000. Assuming, I can refinance 6 % APR (Effective rate of 6.2 % ) on the 78,435.74 in private debt, my monthly payment should be on a 15 year repayment plan. I would plan to pay $ 9,000 on student debt at the $ 55,000 goverment job I would plan to pay $ 15,000 on student debt at the $ 80,000 goverment job annually. With the $ 80,000 job i would proably save the extra $ 3,000 left over for emergencies. ... It would take me about 12.5 years to pay off on the $ 55,000 starting job and about 10 years with the $ 80,000 starting goverment job. ............................................................................................ Thank you for reading. I am will be turing 26 this october. Under this plan I would likely have all my student debt paid by the time I am 38. I have an engineering degree, MBA, and Law degree. I will likley have to postpone any attempts at getting married until I'm 40 due to the current payment driven repayment system. I know I am not in the worst student debt position, but I can't imagine how other persons with student debt will pay off their debt without the goverment PSLF program. ... I just have to hope the republicans don't take control of congress anytime soon (in the next 15 + years) and abolish the PSLF program. Anyways, do you have any better suggestions. I was thinking about applying for private jobs, but I realized that goverment pay was about the same and the goverment has better benefits. I would appreciate any critiques you have of my plan. [link] [comments] |
| Posted: 31 Dec 2021 09:43 PM PST Hello All - I have a quick question. My wife has student loans as is on the IBR plan and has been for roughly 7-8 years. We have the lump sum money to pay the loans in full. Is there any type of prepayment penalty, hidden fees, or hidden costs if we decide to pay it all off right now? I know if you do this on the standard repayment plan then it's fine but just was curious about the IBR plan? Thanks in advance for the help! [link] [comments] |
| How do I find what my interest rate will be when payments resume? Posted: 31 Dec 2021 12:53 PM PST I have 14 loans which total $75k. Now that I have been able to recover a bit from the affects of the pandemic and create a small emergency fund, I want to start repaying on my highest interest loans. However, when I go to my loan servicer and when I go to StudentAid.gov, all my interests rates just show as 0%. Does anyone know if there is a way to see what they will be when repayment begins? [link] [comments] |
| Using Stocks/Investments for Future “Tax Bomb” Posted: 31 Dec 2021 07:27 PM PST I graduated a year ago with a Doctor of Physiotherapy at University of Melbourne (Australia)… planning to stay in Australia..aware of the $0 payment "trick" due to foreign income.. h/e I still want to pay the minimum (currently $510/month on IBR plan).. would it be a smart idea to place some of my future tax bomb savings in safe stocks to allow for a 4% p.a interest rate? [link] [comments] |
| Navient restarted my wife's repayments in November, 2020. WTF? Posted: 31 Dec 2021 12:51 PM PST I just noticed. There's no way that's right, is it? I thought all federal student loan payments have been paused since COVID started. Is Navient not federal? Do you think we'll get our $4,000 back? [link] [comments] |
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