i thought school debt was good debt. that's what everyone told me.
but at 6.8% and $80,000 in debt, i am feeling really alarmed here. i can't sleep tonight.
when i enter repayment, i don't even know how i'll keep up with the minimum payments or interest payments.
i know i've got to keep optimistic about my ability to earn income, but i just... had NO idea, that monthly payments would exceed $1,000/mo.
what should i do? does consolidating help? i'll be going to grad school so i have more time to decide what to do for my subsidized loans... or marry a filthy rich dude lol.
but until then, i've got to start paying down my unsubsidized loans to avoid capitalization of interest at graduation.
should i pay just the minimums on my loans less i overwhelm myself and instead build a killer saving account and IRA, or should i attack those school loans and save less?
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I can sympathize with your situation. First thing I would recommend is do not go to grad school yet!! If you're worried about your debt as it is, taking on more student loan debt is NOT going to help your situation. Plus it is also helpful to get some real world experience before continuing your higher education; it puts the education in an entirely new light. You can always go back later, and pay for it so you don't have to worry about the loans ever again!
Now, people say that this is "good debt" because it is supposed to help you get a better paying job out of school. This only is "good debt" if you actually find that job! You need to try to put that education to work for you. Then find every way to save money (honestly, live with mom and dad for a while if they're ok with it). If you haven't already, start a monthly budget. This will help you squeeze every dollar out of your monthly income to pay off the debt as fast as possible. (Remember, this is not going to be for the rest of your life, this is sacrificing for a short amount of time to have freedom later!). Then pay the minimum on your subsidized loans and ATTACK the smallest student loan. When you pay that one off, move onto the next loan. You have to do this with INTENSITY and FEROCITY! 80,000 will take you a little while, so keep your head down, focus and stay motivated!! Your friends will make fun of you for working so hard and not having any fun money, but you'll be laughing when you're DEBT FREE and they're still paying their loans.
Do not do a consolidation. You usually have to throw in the lower interest rate loans along with the others so it negates the benefits of bringing in the higher interest rate loans. Hold off on the IRA's and savings (except for a small emergency fund about $1000) until you get debt free. It shouldn't take you more than 1.5-2 years hopefully. In the grand scheme of things, it's definitely worth it.
Like I said, I can sympathize because I have been there! You can do this! Don't listen to the idot who told you to sell yourself...SERIOUSLY?!?! It's losers like that who help create the scum of society. Focus, stay motivated and get debt free!! Good Luck!
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if you pay the minimum you will never get out of debt and the principle may even increase. i think putting money in an IRA these days is simply insane. being you are just graduating you have time for a retirement plan after you pay off your debts and get settled.
continue to live like a college student for a while longer and get that load off your shoulders so you can get the better things in life.
pay off the debt as soon as possible. word.
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pay the minimum or what you can afford (if it is more)
you're right to try to control those interest rating and such
speak with your lender, perhaps a free money counselor through your school and a trusted adult that you know to be financially secure
you'll be fine, you might have to take time from school to work but that is the way life works. I wish you the best of luck dealing with this sin of the American educational system- privatization of education on every level
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You voted for OBAMA didn't you?... hows the hope and change working out for you?...I'm sure somewhere in his campaign speech he said he'd be picking up the tab on that too... why not? he promised everyone else something... I'm just wondering...
My school loans are stressing me out...?
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