paying back student loans - Tilted Forum Project Discussion Community

1337haxor · 06-22-2006, 08:04 PM

Hello everyone,

I'm coming up to a point where I have to start planning my strategy for paying back my student loans. I currently have about $30k in loans and by the time I graduate (1 year hopefully) it should be up to $45k max depending on how many more grants I can get for my senior year. I've been paying some if it from time to time when I have money so that's why it is down to $30k now instead of the mid $30k range. I've already consolidated my subsidized loans so I can lock in a good rate before the interest rate increase. About 1/3 are subsidized loans and the rest are variable rate private loans.

I'm curious as to how long everyone paid off their loans, how much they had owed after graduation, and how they did it. What kind of lifestyle did you have during the payoff period? I plan on living at home after I graduate for about 2 years so I can put a nice dent on the bills before thinking about getting a house. But I'd also like to be able to spend money on toys and hobbies (you're only young once

) I currently have several grand in stocks and market funds and I've already started my 401K. I live at home and work part time which gives me enough money to pay my own way through my daily life. Is it possible for me to start saving for a house, pay down a good portion of my loans and still be able to have a comfortable spending limit once I graduate? I know it sounds like a fantasy, but maybe there's some tactic I overlooked.

Thanks,
Robert

stevo · 06-23-2006, 05:17 AM

I had about $60K in loans when I graduated. I got interest rates < 3%. I'm paying back over 30 years. I just started paying back last year. Basically my current payments are just going to interest, which is fine with me, The student loan interest payments are tax deductible.

If you lock in a good interest rate, just pay the minimum every month. Take whatever money you have extra and invest in a higher yeild account. If the interest rate on your student loans is 4%, you can get a CD for 4.5~5% and let the CD pay for your student loan interest and then some.

Redjake · 07-16-2006, 04:36 PM

I would pay a bit more than the minimum, but not too much more. Either put what else you have after the payment into some sort of account, or put it in a 401k or IRA. The interest rates are so low on the loans, you won't get eat up TOO bad on the interest. You don't want these loans to go on forever, but it's not too big a deal if you don't pay them off immediately. Setting up a nice retirement is much more important right now because of compound interest than paying on student loans.

06-22-2006, 08:04 PM	#1 (permalink)
1337haxor Insane Location: PA	paying back student loans Hello everyone, I'm coming up to a point where I have to start planning my strategy for paying back my student loans. I currently have about $30k in loans and by the time I graduate (1 year hopefully) it should be up to $45k max depending on how many more grants I can get for my senior year. I've been paying some if it from time to time when I have money so that's why it is down to $30k now instead of the mid $30k range. I've already consolidated my subsidized loans so I can lock in a good rate before the interest rate increase. About 1/3 are subsidized loans and the rest are variable rate private loans. I'm curious as to how long everyone paid off their loans, how much they had owed after graduation, and how they did it. What kind of lifestyle did you have during the payoff period? I plan on living at home after I graduate for about 2 years so I can put a nice dent on the bills before thinking about getting a house. But I'd also like to be able to spend money on toys and hobbies (you're only young once ) I currently have several grand in stocks and market funds and I've already started my 401K. I live at home and work part time which gives me enough money to pay my own way through my daily life. Is it possible for me to start saving for a house, pay down a good portion of my loans and still be able to have a comfortable spending limit once I graduate? I know it sounds like a fantasy, but maybe there's some tactic I overlooked. Thanks, Robert

06-23-2006, 05:17 AM	#2 (permalink)
stevo Rail Baron Location: Tallyfla	I had about $60K in loans when I graduated. I got interest rates < 3%. I'm paying back over 30 years. I just started paying back last year. Basically my current payments are just going to interest, which is fine with me, The student loan interest payments are tax deductible. If you lock in a good interest rate, just pay the minimum every month. Take whatever money you have extra and invest in a higher yeild account. If the interest rate on your student loans is 4%, you can get a CD for 4.5~5% and let the CD pay for your student loan interest and then some. __________________ "If I am such a genius why am I drunk, lost in the desert, with a bullet in my ass?" -Otto Mannkusser

07-16-2006, 04:36 PM	#3 (permalink)
Redjake I'm a family man - I run a family business. Location: Wilson, NC	I would pay a bit more than the minimum, but not too much more. Either put what else you have after the payment into some sort of account, or put it in a 401k or IRA. The interest rates are so low on the loans, you won't get eat up TOO bad on the interest. You don't want these loans to go on forever, but it's not too big a deal if you don't pay them off immediately. Setting up a nice retirement is much more important right now because of compound interest than paying on student loans. __________________ Off the record, on the q.t., and very hush-hush.