Saturday, December 19, 2009

Student Loans

TeacHer Finance asked why my student loans are "another story" (as stated in my last entry). Some readers my have also noticed that other than the amount I pay every month I never mention my student loans. The reason is.......

I have $90,000 in student loans and I have no idea how I am going to pay them off.

How did I acquire $90,000 in student loans?

I went to a public university after high school Federal Loan = $22,000
I went to a private tech school to get another degree that I thought would advance my career Federal Loan = $19,000
Private Loan = $51,000 ($37,000 x 13% interest)

Due to excessive debt I was unable to consolidate my private student loan and am therefore stuck with a high interest rate.

How do you pay off $90,000 in student loan debt making $35,000 a year ($28,800 after taxes).

My plan of attack is to pay off my credit card debt within the next 2 years and roll all of that money into my private student loan.

Right now I am treading water. I hope I don't get a cramp.

3 comments:

  1. That's what I thought you might say, that you're putting paying off your credit cards above aggressively paying off your student loans. I feel the same way, although my total student loan debt is lower, about $20,000.

    I think you have the right idea. Once I paid off my credit card I felt SO much better about my financial situation, even though I still have an auto loan and student loans.

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  2. Is the private loan interest rate able to increase? My daughter had the same problem. Hers started out at 3 % and then skyrocketed to 10% and climbing. She made her main goal to pay the private school loan off first. She did it in 3 years. The public ones, she consolidated and pays 1-2% interest, has it automatically deducted from her checking account (thus the low rate) and is in no hurry to pay it off.

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  3. I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

    Alena

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