About to pass out from student loans

cupcake_rampage

If you're curious to know more about income-based and income-contingent repayment plans (I think there are two different ones now), you can try this website: http://ibrinfo.org/According to what I've read, there isn't anything specific you have to do or apply for, except to change your repayment plan to one of the above, and then I think when it's been ten years, basically, they are supposed to do it themselves, but I think when you know you're getting close, it's good to check in and make sure everything's going the way it's supposed to.Also, Federal Stafford loans are eligible for forgiveness, as well as Perkins, and graduate PLUS loans IF they are consolidated together with at least one of the other types of loans.

cupcake_rampage

Really, unless people make a ton of money, I believe they are mostly on either the extended plan (which means 30 years of payments instead of 10) or on one of the income-based plans.  There really isn't another way they could make ends meet.

Calypso1977

i mean, i look at my mortgage payment which is $300K and thats for 25 years.  that's a scary number, i couldnt imagine paying that AND a loan payment of the same amount.  folks with these big loans cant possibly be on the 10 year payment plan.

ggmae

Thanks for the info, Cupcake. I will definitely look into it.And now you have made me crave a cupcake. Mmm.

cupcake_rampage

Sorry to spam posts, but this page on their website seems to have the most clearly-stated information regarding eligibility and what you do to make sure you can and are taking advantage of the plan(s):http://www.ibrinfo.org/can.vp.html

Calypso1977

haha, gg, i was thinking the same thing.  that frosting looks damn tasty.

carrieoz_76

I set up auto payment, and try not to think about it.  Having low-interest credit and paying it off over time is actually good for your credit.  That's how I try to think about it.

polichik

I have a combo of subsidized and unsubsidized Stafford, and I just had to take out a PLUS loan today to cover the extra $6k for my last two quarters. My payments, without consolidating, would be $670 if I were to pay it off in ten years.Honestly, the thing that gets me the most is the interest. I'm ok paying something off over a long period of time, but seeing that I'll be paying about $17k in interest makes me want to puke.I'm going to need to look at this loan forgiveness thing.

cupcake_rampage

Thanks, you guys!  I dearly wish I could eat a cupcake right now, but alas, probably not for another month or so will I be able to eat one properly...

Micky15

Wow, I thought my $25k in student debt was bad! I would die a little bit every time I looked at a $400,000 student loan debt. I know this is NOT the smart way to do it, but I extended my loan over the longest term they would give me. (10 years.) My Dad cried about the interest, but the payments are what I can manage. When I get a better-paying job, I will increase the payments. But for right now, I can handle them and that makes me happier then struggling. (Struggling gives me anxiety. lol!) GL! And try not to freak out - almost everyone goes through it.

Leah&Christian09

Mine are over 100K. The only way it could be affordable was to do income dependant. My payments aren't that bad, but it seems I'll be paying them for the rest of my life. Or until I win the lotto.

polichik

I just found this on the website... Ahhhh!If you are married, you should be aware that both your spouse’s income and your own income are considered to determine the resources you have available to make payments on your federal student loan(s). This is true whether or not your spouse is also making student loan payments. Therefore, under current IBR regulations, when two married individuals both have student loan debt and file taxes jointly, they could be expected to pay up to double the monthly loan payment of two unmarried borrowers in otherwise identical situations.

cupcake_rampage

I know exactly what you mean, poli.  It's really the interest that has my eyes glazing over, because at the end of a 30-year repayment, you could end up paying twice or three times your principal in interest.  It's ridiculous.For what it's worth, though, even if you don't get into a non-profit, according to what I've read, the federal government will STILL discharge your remaining loans if you haven't paid them off under an income-dependent plan, except it would be after 25 years instead of 10.Bottom line is, it's not worth stressing yourself out too much over.  The government, despite whatever other failings it might have, is actually pretty flexible when it comes to student loan repayment, or so I have heard.  Consider it from their perspective - they want something from you, even if it's not a lot, and putting you in the poorhouse because of your loans doesn't help them or you.  They will always work with you.

mwhitson14

I just tallied up my student loans (which some are interest-free, some aren't, so I don't know the exact total) and it was definitely more than I guessed, so I was sad. If I can teach for a year in a low-income school, then teach for at least 4 more years, the government will slowly start canceling my debt. I think 2K a year.So definitely check into it poli!

cupcake_rampage

Yeah the spousal thing was the one catch, BUT also on that site, it said that the government is planning to review it in 2010, and might change their regulations to make it more fair for married couples.  This is what I am holding out hope for.

Duckyoflove13

probably not very useful to you but i took the two loans I took out my first two semesters and put one into a CD and the other into a savings account and haven't touched either. I don't have to start paying back until 6 months after I graduate, in like 2012, so I'll gain the interest off and pay it all back in full.I stoped taking out any of the loans this semester because I decided, since I've proven to myself I don't need it (Thank you scholar ships and discounts!!!) that it's just a pain I don't need to deal with.Sorry I'm not much help. I know if I were to worry about it my head would explode and my docs would probably try to put me on more happy pills...

Leah&Christian09

The spousal thing is one of the reasons my good friend refuses to get married. Apparently, they review it every year or so. I set mine up right before we got married. So far, they haven't asked. I'm guessing adjustment will be after we file taxes this year?

ggmae

I obviously need to improve my loan knowledge. A lot of the words being tossed around here are going right over my head. I have been paying toward my loans for a year now and the current principal balance is only $65 less than the original balance. Does that mean that most of the money I have been paying has gone toward interest? Damn you, interest!

cupcake_rampage

ggmae, unfortunately, it probably is the case that 99% of your payments go toward interest.  In the case of some loans, that ratio will change the more you pay off, as with standard and extended payments.  If you are on income-contingent repayment, then I think it remains mostly interest until your loan is discharged or you manage to make a sizable dent in your overall debt.

ggmae

Cupcake - I'm not sure I'll ever be able to make a good dent in my loans at one time. I'll probably be paying the minimum each month for the next 14 years. Even with all of the interest and the annoying payments, I'd say that it was worth getting an education though. I suppose that is what matters most.

stina93446

Sorry, not really helpful, but I wasn't given much for student loans. The most I was given was $1750, so as soon as I graduated, I paid it off in full. You can do it, Poli! Just take each payment one at a time!

polichik

Even with all of the interest and the annoying payments, I'd say that it was worth getting an education though. I suppose that is what matters most. :)I feel like this should be my mantra. I was getting down on myself yesterday for picking such a frigging expensive school, but I know that it's the best program in the country for what I'm planning on doing for my career. Sometimes I get pissed at myself for not taking a few years off to work and save money, but I guess it'll all even out in the end.

ggmae

Poli - Yeah, the way I look at it is that I'd be in a far worse financial situation without an education. To me, the loans are worth it, but that doesn't make them any less annoying.

cupcake_rampage

Poli, the one thing I have myself learned and tried very hard to come to terms with is that you can't ever go back, and so you're better off trying to think of all the good things that have come from your choices.  I know, it sounds so trite when you say it that way, but it's that way for me.I have often regretted the choices I made that led me to the three schools I ended up attending to get my BA degree.  But if I hadn't done so, I wouldn't have ended up with the eye-opening experiences I did, I wouldn't have gotten a fantastic mentor/advisor and internship, and I probably would never have met my boyfriend (now fiance).I waffled a long time over choosing to attend the private school I did last year, but I'm incredibly glad I did even though it was painful and difficult to live 3000 miles from anyone I knew, even for just a year.  The experience was worth every penny I'm paying for it, hands down.So I know that in some ways this stuff might not seem like it has anything to do with loans or money, but in terms of emotional and psychological wellbeing, all I can say is that thoughts like these have given me immense peace of mind at times.

polichik

I think that's a really good way of looking at it. My program has changed a lot more than just my knowledge base... It's changed the way that I relate to people and has changed the way that I think about myself (yay therapy school!). You guys are amazing at putting all of this into perspective. I can be downright irrational about my fear of debt and interest, and it's really good to hear that many people are in a similar situation and feel good about their choices.

agk0125

If you are married...could be expected to pay up to double the monthly loan payment of two unmarried borrowers in otherwise identical situations.1. This makes me want to BARF.2. To make you guys feel better: In college FI was dating this hobag who was two years older than him and demanded they move off campus together when she graduated. Of course she couldn't find a job so FI "did the right thing" and took out EXTRA loans to pay for them both to live. Now he and I are stuck with the reality of the completely shitty decision making skills he had when he was 20 (and the decisions she allowed him to make when she was old enough to know better).At least your high debts are do to education and not some free-loading asshat.VENT OVER.

bel138

Sorry, I ran away for a while. FI's undergrad + my medical school + FI's grad school = $400,000. FI is happy with what he's doing, but the pay isn't very good. And I'm a resident. We're on a 25 year plan and trying to pay it off sooner. I keep trying to think it will be worth it in the end. But really, doctors don't make what they used to compared to the astronomical rise in tuition. We took a poll at school once, and about 50% of my class said they would drop out and not look back if their loan debt was forgiven.

sarabellam

My current student loan payments are roughly equal to my mortgage payments on my last house. I qualify for a 30 year repayment schedule, but chose the 10 year schedule instead. Only 8 more years until my Master's is paid for...Fische, I need to put my father in touch with your father. My father offered to pay for my Master's, but that hasn't happened. Don't count your tuition payments before they hatch. Or something.