Yay time to payback student loans! (aka F********CCCCKKKKK)

[Dominico]

Only advice I can give is to make being debt-free your #1 financial priority. Any extra money you have, no matter how small, send it in to knock down that principal balance. Don't treat this shit as "just another bill". You need to get rid of this ASAP or it will eat away at you FOOOOREEEEEVEEEER.

[Weltall]

This thread is depressing. I don't know how people manage to start careers with such a huge debt. Good luck...

[vagus]

Anyone in high school still reading this forum, get into a trade. Blue collar job the way to go.

[Mojo]

By getting your own place i'm guessing you purchasing a home instead of renting? ive resigned myself to renting for the future. I might look into shortening that, because 25years is just too damn long. I dont want to finish paying it off as I get into retirement age. The $365 a month is doable right now with both myself and wife working and letting us put a little away, but I know my wife wants to go to school and find a new job (since she works for a petstore and they wont allow her to take classes).

I see what you're saying about paying off the large ones, as those are around the 6.8% mark as well. Adding it up though as a consolidated loan in that calculator has me paying $624 a month, which is doable I THINK, but id have to check my budget and figure things out, also need to add them all up together when I get home and compare them to that number

If you can manage to save up a down payment and plan on living in the same area for a few years, buying is a good way to go. You'll end up paying for the fees during the first couple years, but afterwards you're building equity instead of paying rent. It's a much better long term strategy.

[Meresgi]

Anyone in high school still reading this forum, get into a trade. Blue collar job the way to go.

^ This. Brother-in-law does electrical/plumbing/jack of all trades handyman type shit. Making around 70k/yr or more w/o any education at all, no debt no nothing. He got lucky that father-in-law taught him the trade. But if you can find a mentor or anything, take it. Great money especially around areas that are full of managers and such who don't want to get their hands dirty or don't have time while working their 6 figure jobs.

[bluefan]

Yep.

Couple buddies spent 2 years in a technical college to get their Technologist title and make ~$60k/year with no debt (ceiling for a technologist is like $80k). Their work is even paying for the CCNA course we're taking. They finish that, they can a nice bonus too.

[Ddz]

Jesus christ, your guys' interest rates are astronomical. I have two loans left with Sallie Mae, one for $7300 at 2.875% and one for like $700 at around the same. It costs me only about $20 to keep my loans riding. 6%+ is holy shitballs. I hope they're consolidating them for you at a lower rate?

[Meresgi]

So here's another question i'm asking myself. Should I pursue my Bachleors for the sake of having a Bachleors via my work paying for it (3k a year..which is going to take a ton of time. And i'm not going to incur anymore debt so not doing loans) or go get all my certs and just use work experience in place of a degree. I know a degree gets you noticed by HR usually while certs are what get you a job IT related.

I'll probably get my CCNA, Linux+, Sec+, Network+, and some MS certs to make myself more marketable. Anyone work HR and care to share the rationale behind the scenes when looking for employees? I know some places won't even glance at you with a B.S or M.S tacked on your resume.

Jesus christ, your guys' interest rates are astronomical. I have two loans left with Sallie Mae, one for $7300 at 2.875% and one for like $700 at around the same. It costs me only about $20 to keep my loans riding. 6%+ is holy shitballs. I hope they're consolidating them for you at a lower rate?

I guess 6.5% is lower then 6.8% lol. That was my consolidation offer.

[Melena]

Depends on where you get employed. I do IT for law enforcement and honestly, I have the most college experience out of everyone here, including management. Everyone here is self taught for the most part. Personally I'd do certs and take advantage of the slow ba since they will pay you for it.

Also fuck those interest rates. I paid off my one unsecured loan by balance transfering it to a CC at 4.25% (loan was at 11.5% and rising) and my subsidized loans are at 3.85%. Only about 5600 to go on those.

[RKenshin]

By getting your own place i'm guessing you purchasing a home instead of renting?

ive resigned myself to renting for the future. I might look into shortening that, because 25years is just too damn long. I dont want to finish paying it off as I get into retirement age. The $365 a month is doable right now with both myself and wife working and letting us put a little away, but I know my wife wants to go to school and find a new job (since she works for a petstore and they wont allow her to take classes).

Nope, even further! I meant as in staying back at home.

Not always an option for everyone, and dependent on your situation with work/family/etc, but my situation allowed for it. Got along fine, still had some level of our own privacy, and I still paid any/all bills involving me.... but of course, I saved big on not having a rent/mortgage payment.

Now though, with student loans being the only debt I have left and soon to be gone, I am starting to look at houses. I considered renting at first, but ultimately decided that I might as well go for it if I can afford/manage it.

Renting is definitely easier and cheaper on a month-to-month or even year-to-year basis. Over the long term though, home ownership wins as you start to accrue equity. I’d recommend staying with renting by the sound of your case, until you can establish yourself in a career and get a good handle on your debt and payment plans. Otherwise, home ownership can be a bit too costly, time-consuming, and a major anchor limiting your opportunities.

I see what you're saying about paying off the large ones, as those are around the 6.8% mark as well. Adding it up though as a consolidated loan in that calculator has me paying $624 a month, which is doable I THINK, but id have to check my budget and figure things out, also need to add them all up together when I get home and compare them to that number

By the sound of things and with how the math would work out, there’s definitely some confusion on a 10-year pay-off period vs a 25-year pay-off period, as far as the loan terms you’re dealing with here go.

A $624 monthly payment would imply a 10-year pay-off period, where as the $3xx number you mentioned earlier would only make sense for a 25-year pay off.

Jesus christ, your guys' interest rates are astronomical. I have two loans left with Sallie Mae, one for $7300 at 2.875% and one for like $700 at around the same. It costs me only about $20 to keep my loans riding. 6%+ is holy shitballs. I hope they're consolidating them for you at a lower rate?

One of my loans started at 11.x% with good 'ol Sallie, after graduation. D:

[Seraph]

I started paying off my loans before the credit bubble popped in 2008, so I couldn't get decent refinancing offers to save my life (on the loans that were able to be refinanced). I think my best loan was at about 6% interest, and the worst was just under 11% interest (and it was my largest loan too). It took me just under 4 years to pay off a little under 50K in loans while still staying afloat monthly, and following my own advice. It was horrible, but once your momentum starts snowballing after killing loan #1 it is really encouraging. I also got lucky, and got my first 'real job out of college' the month before my repayment grace period ended, so I cut it pretty close there.

With all that said, it's really weird yet satisfying having less monthly expenses now than what I used to pay years ago in student loans per month. X_X

[Meresgi]

So would it be cost effective to group up just the 6.8% loans as a whole, or better to pay off each one individually (in regards to the 6.8% loans)? Who would I go speak to about this? Just a basic financial planner type person at something like HR Block(do they do that shit?).

[Mojo]

Doesn't matter, as long as you're paying the ones with the highest interest rates first. You follow that rule and you're doing the best that you can. In my case, I have $40,600~ worth of student loans (some 6.8%, some 5.6%, some 3.4%). Paying off the 6.8% loans first (as oppposed to paying them off all equally) saves me $1400~ in the course of ten years. However, if you can reconsolidate for a lower than 6.8% rate, it may be worthwhile to do that. I doubt you'll end up paying less, but if you can pay close to the same I'd say it's worth the savings in mental overhead. You decide how your loans get paid off. Contact your loan servicer and find out how to pay them. You can sometimes set up automatic payments, it depends on the servicer.

[Ddz]

I had no idea that other people were getting so hosed on interest rates for student loans. Wow...I'm sorry, guys. I'd maybe take them to a credit union to see if they'd give you a lower rate? Will anywhere give a lower rate?

[Xerlic]

I had no idea that other people were getting so hosed on interest rates for student loans. Wow...I'm sorry, guys. I'd maybe take them to a credit union to see if they'd give you a lower rate? Will anywhere give a lower rate?

When were you in school? The rates quoted in this thread are pretty standard nowdays, afaik.

[Buffy]

6.8% is the current standard from the federal government for unsecured education loans for post-graduate degrees.

My parents are lending to me at 3%.

Yes, my parents are fucking mercenaries. They are all like "That's cheaper for you and better than we can get on a CD right now. Here's 20k!"

Oh well, at least my credit score thinks I'm still debt-free.

[Ddz]

When were you in school? The rates quoted in this thread are pretty standard nowdays, afaik.

I have been out of college for a while. Like 9 years. I guess I wrongfully assumed that things got more affordable with all the education reform talk and whatnot... :/.

[synistar]

Interest rates skyrocketed in like 2005-2006. I'm in the boat where I got my loans locked down at 2.875% before it jumped to 6%. I think the worst thing is how in CA, college fees have skyrocketed. Annual fees were around $5.5k/yr, now it is stupid like 12k/yr. It really sucks to be a graduating student now in a crappy job market.

[Thuronn]

Interest rates skyrocketed in like 2005-2006. I'm in the boat where I got my loans locked down at 2.875% before it jumped to 6%. I think the worst thing is how in CA, college fees have skyrocketed. Annual fees were around $5.5k/yr, now it is stupid like 12k/yr. It really sucks to be a graduating student now in a crappy job market.

If I had a dollar for every application or interview I've done, I'd have enough to get by.

Actually getting a job, not so much however

[Meresgi]

If I had a dollar for every application or interview I've done, I'd have enough to get by.

Actually getting a job, not so much however

It's ok, its not like jobs look at your current debt when deciding to hire you or not......oh wait......fuck