Post # 1
I will be given enough money to pay my student loans off soon. That’s basically, no more Direct Loans. Goodbye! Forever.
The thing is, I have such a shitty job. I mean, really. With this loserfied economy, I’m getting paid less than what I am worth because there are no jobs.
I’ll be brave and post my payoff balance…$70K. (I have a Master’s degree..so..yeah.LOL)
Anyway…what would you do?
Post # 3
What’s your interest rate? If it is super low then you might be better off putting the cash into a savings account instead.
Post # 4
From what I understand, you can get a tax break for paying student loans. So I chose the pay most and leave 5k option.
Post # 5
- Wedding: March 2010 - Calamigos Ranch
I don’t know if this is the most sound decision, financially, but I would TOTALLY pay it off. Don’t feel bad about your $70K, though… just ask a JD what he/she borrowed. 😉 Personally, I can’t WAIT to pay my loans back, and if I could do it all at once, I absolutely would.
The smarter thing to do, of course, would probably be to pay off half or 3/4 and consolidate the rest into a reasonable monthly payment that you can manage even if things go really badly with your job (knock on wood).
Post # 6
AH I feel your pain. I have been teaching for 13 years and I am still paying off my loans from grad school!
Post # 7
As a student, my immediate instinct is: “Direct loans, kiss my a$$!”
I’d either save your windfall and increase the amount you pay off monthly or pay off the entirety of the debt. I don’t really see the point in leaving a little debt if you can take care of it all at once, but on the other hand, that’s a lot of money to let go of so quickly!
Post # 8
- Wedding: March 2010 - Calamigos Ranch
@surkim: That’s only if you earn 55K a year or less, I believe, and it only applies to the interest you pay.
Post # 9
Wow… #1 I’m jealous 🙂
I have 80K in loans (BA/JD) but my interest rate is pretty low. If I were you I would pay off ALL other debts first, stick 6-8 months in the bank for a rainy-day fund, buy myself a pretty purse and/or shoes, then put the rest towards the loans.
Post # 10
student loan debt is better to have than credit card debt, so if you have any credit card debt, I would pay that off first! I hear you on the stress of having to pay back massive amounts of loans though. I will have about 75k by the time I graduate with my Master’s this year.
Post # 11
part of my is all, “pay it off now!” but i do understand the tax break. how about a happy medium: pay off a good portion and save the rest as a rainy day fund? but considering how much extra money you will have at the end of the month since you’re no longer paying off the loan can go towards the rainy day account. hmm, i say pay off the loan and be done.
Post # 12
I’d say what is the interest rate, do you have any other loans at a higher interest rate, do you have anything set aside in savings, and since it sounds like your annual income would qualify for the student loan interest credit- would that make a difference in your taxes? If you having nothing in savings, I’d put some there. If you have the crazy super low interest rate, I’d be inclined to pay some off but maybe not the whole thing. You never know when you might need that money and if things improve, you could pay off more.
I was around the 80K mark when I graduated and am down to the final 10K, so I know your pain!
Post # 13
Over the years, I’ve found a couple of different loan forgiveness programs that I’ve put to work for me. I’m going to try to limit the amount that I pay myself, because with this money having the lowest interest rate I’ll ever get, I’d rather put my disposable income to work for me. Far better to make a wise investment that will pay a higher interest rate than to pay off cheap money that has an interest rate that you’ll be unlikely to ever get again (my loans are at like 2.75%).
I will say that I’ve structured my life and career so that I’ll hopefully always have a loan forgiveness option (working in underserved areas or doing research that allows other institutions to pay my loans).
Best of luck!
Post # 14
Don’t beat me with sticks, but I don’t know my percentage rate and I’m too lazy to go look at my papers.LOL
I’m thinking paying I will pay it off. I was also thinking, once I get the money, it’s going right to them. Not that I wanted to spend it on stuff, but at least a nice vacation or a future wedding dress.
BUT it will be gone. Most people would be glad to get rid of it,so I need to chill out and it it. PLUS it will help when I want to be a stay at home mom in the future. I’d hate to try to stay at home and he’s paying that mess off.
I’m going to pay my credit card and put it away, forever.LOL It’s not high and I rarely use it, but it still scares me.
And thanks for not kicking me for $70K. My SO doesn’t even know that number…now he never does…hope that’s not wrong!LOL
Post # 15
I would never kick you for your $70k loans 🙂 Mine is $120k and my FI knows about it…god bless him for still wanting to marry me!!
Post # 16
i would definitely just pay it off. i hate having debt!!