by J. Riggs
(Columbia, CA USA)
Pay It Off!
by Heather
(Utah)
As I graduated at 20 years old with my Bachelor's in Science in Computer Science, I now realized I was on my own... with $90,000 in student loans. At first, I was overwhelmed and thinking 'What did I just do? I have doomed myself into a spiral of financial insecurity!'. Well, that's not entirely true. I graduated in 2008. I took out a 30-yr payoff plan to pay off the student loans . No, I have not paid them off in 4 years! However, my husband (Also has $75,000 in student loans) and I have a plan. We both make good money, and we are focusing on one thing at a time. I have 6 loans with the total of $90,000. I have made the minimum payment until I could afford to pay more on them. I still make the minimum payment, but now, I put $400/month extra on one particular loan-principal payments only. Now, keep in mind, I couldn't always do this.
When I graduated, I bombed my first job-too advanced placement for me at the time. I was then unemployed for 3 months. After some job searching, nothing was coming up. I decided to broaden my horizons. I worked at low-income retail jobs and was doing on the side contracting in my profession. I did this until mid-2009, until I found a more stable-though not preferable-position. I was working in support-higher salary than what I was making, though not by much. We struggled for a while. My husband got raise after raise, while my company didn't seem to recognize me. I continued like this for 2 years. Finally, I was fired with no reason behind it. We won't get into how this wasn't fair, but I did get a severance package and unemployment.
A week later, I found my current job. I have been working there over a year, and doubled my salary-in a position I actually am qualified for. So, since we have been able to stay on our feet, we have been able to pay down some on the loans. With every bonus we receive, and every check we get from family, it goes to pay off some more loans. I have followed this plan for over a year now, and I am proud to say I owe around $65,000 on my loans to this day. Which means-it is not impossible, but it does take a lot of commitment.
You have to realize you cannot get everything you want. Deal with the torn up couch for a little while longer, or the junker you have been driving. In the end, paying off your student loans will all be worth it. And people who do make fun of what you have...well, they will be the ones paying for 30 years to pay off their loans. Know you are doing the right thing.
Read more advice on from other students and parents at Pay off Student Loans
by Danielle
(Corvallis, OR USA)
Being a transfer student can mess up your financial aid when you transfer in the middle of the year. No one told me that. I went from being fully covered with Pell Grants to having to take out quite a few loans because part of the grants were already used by my previous school. If I hadn't have done that I would've been fully covered.
I'm paying off debt as I go back to school again after a break and Student Loans are not "good debt." There's no such thing. You can file bankruptcy and still have to pay off your student loans, you can adjust your payments to match your income but that could lead to adding years to your payment plan.
When you get down to it, if you absolutely have to take out loans the best way to pay them off is to put as much money as you can towards them every paycheck, no matter what. You'll never fully be free to live the "American Dream" of a house and car and kids with financial freedom if you're constantly making that minimum payment.
Even if you only have ten dollars extra after all the expenses are paid, put it towards your loan payment. It could be the difference between taking 10 years or taking 30 years to become debt free.
Read more advice on from other students and parents at Paying on Student Loans
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