Student Loan Payment Reduction

[ttpadilla]

One problem I was having with the $500-700/month budget, was my student loan payment.

Although I owe far less in SLs than some people, I do owe about $9500, and the payment was $100 a month. A couple of weeks ago, I applied for "income driven" payments and today I found out that I was approved, and my new payment will be $11.97 a month! While I know that interest will continue to accrue, and ideally it would be lovely to just pay it off, until I'm full-timing it and see what my expenses actually are, this is such a relief!

One step closer...

 

[cyndi]

WOW!!! That's quote d a difference!What a load off that must be.

Thanks for sharing that. I have a couple of friends that are really crumbling under the weight of their student loans. Maybe this can help them, too.

 

[Almost There]

Does that even cover the interest?

If not, then the balance owing is going to keep on getting bigger.

I know it's a relief to have the payment reduced but it might be wise to figure out the minimum payment needed to cover at least the interest portion so that the total due doesn't escalate.

I just hate to see people get in deeper and deeper in the long run because of a short term solution.

 

[ttpadilla]

AT,

It does, actually, cover the interest. Not much more than that though. Naturally, if someone threw a whole bunch of money my way, I'd be happy to pay it off now, and never worry about it again, but my life just doesn't go like that. If I'm understanding everything I've read, after 25 years of payments, the student loan and accrued interest is written off. So, the math... $11.97 x 12 mos = 143.64 /year x 25 years = $3,591, which is a whole lot less than $9500. If my income situation improves, obviously I'll make bigger payments.

Cyndi,

I hope your friends can find some relief!

 

[K1ngN0thing]

I put my payments on forbearance and it's almost up. I owe 8500. It's killing me. I regret not getting out sooner. Never wanted to go the college route in the first place, but that's what you're "supposed" to do. Also have $5k in credit card debt (though it was money very well spent).

 

[ttpadilla]

My credit card debt is down to $1300, and I'm trying to get it down to nothing. I don't use it, so at least it's not growing. When are you hitting the road?

 

[K1ngN0thing]

I won't feel comfortable hitting the road until I've built my income stream back up and have a buffer of cash to supplement it. My primary income is ebay which generally brings in a few hundred/mo and I've got to get rid of some of my larger items before moving out. I should really probably try to find a part time job that doesn't require a lot of social interaction. Being the guy in the booth changing the movie reels sounds like it could be fun.

 

[Optimistic Paranoid]

Hate to break it to you, bro, but Hollywood doesn't ship out film reels anymore.  All theatres have gone digital.  Nothing to change anymore.

Regards
John

 

[K1ngN0thing]

Thought that might be the case. Whatever the person in the booth does then. I just want to see movies for free and get paid.
Uber/Lyft driving sounds like it'd be great for vandwellers, but they require you to have a relatively new vehicle. Shame.

 

[Matt71]

AT,

It does, actually, cover the interest.  Not much more than that though.  Naturally, if someone threw a whole bunch of money my way, I'd be happy to pay it off now, and never worry about it again, but my life just doesn't go like that.  If I'm understanding everything I've read, after 25 years of payments, the student loan and accrued interest is written off.  So, the math... $11.97 x 12 mos = 143.64 /year x 25 years = $3,591, which is a whole lot less than $9500. If my income situation improves, obviously I'll make bigger payments.

Cyndi,

I hope your friends can find some relief!

That is true, but make sure you are on the right plan, they're not all the same.
Also, keep in mind that after the 25 years the IRS taxes whatever gets forgiven as income.

I envy your $9500
I owe about $150,000, which is mostly interest.

 

[ttpadilla]

Ouch! That's a lot of cabbage.

The $9500 was for Community College to finish my prerequisites for the Nursing Program. I changed my mind about becoming a nurse, decided to get a Bachelor's Degree in Biological Science, and was supposed to start at Oregon State University this fall. But after I lost yet another place to live, I took stock of my life and realized that when I graduated at the age of 51, by the time I found a paying job in that field, I would be so much deeper in debt that I'd never make it out by the time I retired, so that degree is a dream I'm giving up. Education is shamefully expensive in this country.

 

[offroad]

1) Glad you are being responsible and not deciding to run to another country and ignore your loans. Have heard of persons who leave the USA and just try to let statute of limitations apply for collection of the debt, when they all expire.

2) Use this online calculator tool to get some estimates for some reduce payment plans. Looks like a maximum of 20 to 25 years. You just need to apply for these programs to get the relief. Make sure that you look at them all to see which will best fit for you over the next 20 plus years.

https://studentloans.gov/myDirectLo...epaymentEstimator.action#view-repayment-plans