About to pass out from student loans

polichik

I've been staring at the numbers for the past hour and I'm really starting to freak myself out. I know it's going to be fine, I know we'll be able to make the payments, I know I don't even have to start paying for over a year, but I've never had to pay interest on anything before. There's a reason I avoid CCs like the plague.Anyone else ever freaked out about this? How did you handle it?

crfische

I gave 'em to my dad and had him pay 'em. Sorry. That's not helpful.

agk0125

fische will your dad pay mine too? That would be AWESOME.

MeaghanandMichael

Yeah I freaked myself out big time. If you can at all, start making more than the minimum payment to cut back on the interest. Also, remember that student loan debt is not necessarily viewed as a big 'nono' when applying for a house and other things. Almost every one has some and you are going to get through it just like every one else

crfische

Ha! Why not? I'll run it by him.

scoetto

Exactly what Fishy said. Not to sound like a beebee but for some reason MY education wound up being a part of my parents divorce. They seperated my final semester in college and somehow my dad got stuck with the bills? I'm really not sure why/how, but I was very grateful for it. If this is the only thing you have to pay interest on, I have a feeling you'll get them paid way sooner than you think. Good luck with that!

airidh80

You get used to it pretty quickly. I also recommend putting them on auto-pay. The money gets deducted every month and i don't really think about it very much. Then, when you have more free cash, think about making larger payments so you pay back less in interest. I mean, honestly, you just have to suck it up and deal with it. It's not the end of the world. There's a big difference between student loan debt and frivolous CC debt.

Calypso1977

initially, but i got over it.  take comfort in knowing that its "good debt" versus a credit card. my mom always said that your education is the one thing no one can ever take away from you.  i also think, tho, that too many people pick a super expensive school without giving thought to what they plan to do for work afterwards and what their realistic salary expectations are.i know a girl who went to a super expensive school to be a teacher.  she has $200K in loans and makes about $30K.  IMO, that isnt smart.  pick a school that wont leave you with loans greater than what you can expect to make/pay.

Leah&Christian09

I feel you. I nearly had a heart attack when I did my exit counselling with financial aid and saw the grand total. I must have had a look of sheer terror, b/c the fin aid guy told me to consider it a mortgage, not a loan on my education. Except I can't live in my degree. And I can't improve it and sell it and earn equity in it. But I owe enough that I probably could have bought a house. Anyway, my solution has been to just not think about the grand total. I consolidated most of them last year, and the payment is really reasonable, even if it isn't going very far. On months when I have extra, I pay a little extra. After a few years, I'll look at how much the balance has decreased and feel better about it?

sarah0725

Right now, I'm basically dealing with it by putting a soup pot over my head, banging it with a spoon, and yelling, "LA LA LA LA LA LA!!!!"Not sure that is the most mature way. But there's nothing I can do about it right now, and I have to be on loans for a few more years before I get married/get my Ph.D. Such is life.

scoetto

Leah, although your dress is absolutely gorgeous! I miss your snuggie pic.

wadingmoose

I didn't have any.Hooray for scholarships?

polichik

Fish, feel free to drop my name around your dad... Us midwestern girls have to stick together :)Yeah, I know I have to suck it up and deal with it, but I'm still freaked out. FI's paying his loans off now and has a ridiculously low interest rate, which is helped by his auto-pay thing. I know it's "good debt," and it's an investment in the future. I just wish it were a cheaper investment, ha!MFTs make a decent salary once they're licensed, but the first two years out of school are pretty tough financially. I'm glad FI's so financially responsible and is steadily employed (knock on wood).

agk0125

Wow thanks!And to answer the actual question, you get used to paying your student loans. It's just part of life.

bel138

FI and I have a combined $400,000. I try not to think about it, or I will vomit.

airidh80

Oh, and as a side note, if you ever find yourself unable to make your payments, DON'T stick your head in the sand and pretend it isn't happening. Call them. Immediately. Generally speaking, student loan organizations are very good about working out payment plans and adjustments with people. They WANT you to be able to make payments, even if the payments are small. If you address it head-on, you can almost always work something out.

polichik

Sarah, you crack me up, literally :)Leah, FI said the same thing about not looking at the grand total and thinking of it like an electric bill or something that you're always going to have to pay. I'm a penny pincher by nature (weird family stuff growing up), so I get super paranoid whenever I owe money on something, even something like this.I guess it could've been worse.. One of the girls in my program met her DH at undergrad and is now at grad at the same school. Together, they have $300k in loans. Dear god.

Leah&Christian09

Thanks, Scoetto. I'd forgotten about the snuggie. It's fall, maybe it's time to drag the snuggie back out...

polichik

Ahhh bel, I'm sorry, I read your post after I posted the thing about my friend. I didn't mean to rub it in

agk0125

Gotta be honest, some of the answers and stories of other people make me feel a little better about what FI owes. He owes a lot, but at least it's not $400,000. I guess the cup IS half full after all.

scoetto

I like the pic because your friend reminds me of my friend Chrispie. Same facial expressions & everything. I think that's why I remember that pic so well. That and who doesn't love a snuggie?

cupcake_rampage

This probably won't be entirely useful, but what I'm planning to do is make darn sure that I'm working in a non-profit institution after I finally graduate.  I was planning to do that anyway, given that my career focus is in museum studies.  But it would be worth it to me anyway, because of the income-contingent repayment plan.  The government helps you to calculate a student loan payment that is manageable based on your income.  If you work in a federally recognized non-profit institution for 10 years, the remainder of your loans get discharged.For what it's worth, I don't see anything wrong with going to expensive schools if you want to, so long as you at least think about how you're going to be paying those loans back.  I know I want to work in non-profits anyway, so that sealed my decision to obtain two graduate degrees from two different private schools.  I didn't go to a school just for the piece of paper, otherwise I could have gone anywhere.  I went for the experience, the level of education I knew I was going to get, and sure, for the name, a little bit.Of course, I don't have to start repayment until I finish my second degree, which is probably three years away, so I guess I can't be certain it was the right decision until then.

crfische

Right on. Working with at risk youth and families got me 40,000 dollars cancelled. Booya.

aggiebug

I completely understand! I just got an estimate for my last year and it was about $34,000, I about cried.  Now that does include living expenses but there is no chance for a job to take care of it so it all comes out of loans.  Gotta love professional school! ugh.  OH and another $1000 to pay for my exit test and some study materials...I am blessed that my parents and grandparents have helped me out tremendously, but it still makes my heart skip a beat seeing those numbers.

ggmae

I haven't so much freaked out, but the payments each month are a good amount and that stresses me out. I am paying the minimum right now and hopefully will be able to pay a bit more each month in the future.

cupcake_rampage

I estimate that I will be graduating ultimately with approximately between $100k and $200k.  According to the repayment calculator I looked up, if I worked in a nonprofit for 10 years, I would be paying approximately 30-40% of the interest on my loans.  The entire principal and remaining interest would get discharged.  So we're talking... the government would be paying for several hundred thousand dollars of my education.The sole drawback is that I hear your tax bill that year is atrocious, since they count the discharged loans as earned income.  I'll take it, though.

polichik

Do you know where I can find info about that loan forgiveness program? I want to work for underserved populations, and I'm pretty sure workers in the mental health field can qualify.It would be SWEET if they forgave the rest of my loans in 10 years.

crfische

Yup, I'm in the mental health field. Perkins loans were the ones that were cancelable.

ggmae

Cupcake - Would that be something that I talk to my student loan companies about? I work for a non-profit and feel like I should look into this.

Calypso1977

i couldnt imagine owing $100K plus.  some of your payments must be $1000 a month or more!  how do people do it??

ggmae

i couldnt imagine owing $100K plus. some of your payments must be $1000 a month or more! how do people do it?? This. I stress about making payments for my $30k in loans. I can't imagine $100k!