Post # 1
So far, I don’t have any student loans. All I have at this point is my Associate of Arts degree majoring in Behavioral Health/Sciences. I was planning on going back to school in January, depending on financial aid & stuff. I just got my award letter, which says I’m only being offered $300 for a pell grant, so that wouldn’t have to be paid back, of course. Then, I’m offered 2700 in subsidized loans, 3500 in unsubsidized loans. As I said, I’ve never had student loans, so I’m weary of it. I’m only making 8.00 an hour right now, so I would be afraid of not being able to afford the payments & stuff.
Reading into it, I’m seeing that subsidized loans don’t accrue interest while I’m enrolled at least half-time in school, but unsubsidized loans gain interest as soon as the money is sent to the school.
So bees, do you have loans like this, or know about them? I’m having a hard time deciding if I want to go into debt right now as a newlywed. :- But I know that I need more of an education if I want to make any kind of money.. So i’m torn.
Post # 3
@roweboat: I’ve got a mix of both subsidized and unsubsidized totalling about $30K from getting my masters. You are correct, interest starts accruing on unsubsidized as soon as it’s disbursed. If you don’t pay it, they’ll capitalize the interest (add the amount to the principal balance and then charge interest on THAT). Once you’re done with school, there’s a 6 month grace period before you have to start making payments (minus the unsubsidized interest) so that in theory you can start a job with your new degree with more money and be able to afford the payments. Read up on the different types of payment plans once you’re done with school (income-based repayment, standard, etc).
Post # 4
$15K in loans left from the original $22K. They are a combo of subsidized and unsubsidized.
I graduated UG in May 2011, started paying them in November 2011, and I feel like those b:tches are never going to end!
Post # 5
If I could do it over – I wouldve worked more during college and did everything in my existance to NOT have student loans!!! I have a mix between private, federal and state student loans that cant be consolidated without a new private loan. I do NOT recommend getting student loans… its a pain to pay off!!!
Post # 6
Yup! FI and I both have them. Add in what he borrowed from his dad and we owe a combined total of $100k!!! Ugh :/ Annnd FI still has to go back for his Masters because he’s a teacher!
Post # 7
I think I win.
I have 110K in student loans from PA school.
Fiance has around 200k+…. from undergrad and PA school.
there’s nothing I could really do about them though. You cant work during PA school. Luckily we already have jobs lined up with a combined income of about 200K so I think we should be able to pay them back in about 6-8 years.
Post # 8
I don’t, but FI is dealing with his ex-wife’s. They consolidated loans while they were married and of course, she’s not making payments even though she’s actually using her degree. He’s trying to go back to school, but can’t until the loans are brought current. We also just found out about one that he co-signed for her when they had only been dating a few months. Who in their right mind co-signs for a girlfriend? And who lets a 19 year-old co-sign for anything!?
Post # 9
I think I only had about $9000 from my undergrad years and then I had another $30K from grad school (I didn’t pay tuition but my stipend was tiny-like $6000 per yer). It was a mix of both. What are you going to school for?
Student loans are not the worst kind of debt, because in theory you should be able to be making more with the degree you earn. And you actually get an education from them. You don’t have to start making payments until 6 months or so after you graduate (or after you quit going to school). It is not the same as racking up $10K in credit card debit on random “things.” However, it’s very easy to take out more than you need just because it is easy to do so at the time.
Making the payments they asked (meaning I didn’t renegotiate lower rates or anything), I graduated in May 2010, started payments December 2010 and next December (2013) I think mine will be half paid off. So that’s about 6 years of payments. You can obviously make more to pay them off quicker if you want!
My advice is not to take out any more than you absolutely need! Work along the way to make ends meet. Work full time in the summer, etc.
Post # 10
Not a penny–thank GOD.
I went to undergrad on a full merit scholarship (a conscious choice, I turned down my first choice school because they only offered a half-tuition scholarship). My parents were generous and covered all my living expenses. My PhD program is fully funded (full tuition remission, plus a fairly generous stipend that would cover living expenses even if we didn’t have DH’s income). I wouldn’t have picked a grad program that wasn’t fully funded, but the ability to do that is highly dependent on field/degree type.
DH doesn’t have any student loan debt either, although I think his parents did take out loans to pay for his undergrad. His parents paid it off though.
Post # 11
Mine were never in excess by any means (about $6,000, I believe), but I thought I had paid them all off years ago. Unfortunately part of them had gone into arrears/collections, however, and had been accruing interest. *sigh*. I thankfully paid them off–for good!–November 2011.
Post # 12
So student loans don’t have to start being paid immediately? I figured that as soon as I started going to school, I’d have to make payments.
@kes18: I’m going to school to eventually become a counselor. I’m planning on getting my BS or BA in psych/behavioral science and keep moving forward from there. That’s my plan so far anyways. I’ve been contemplating changing my major just because it seems like a psych degree isn’t the best to have..but it’s where my interest is.
Post # 14
- Wedding: November 2013 - St. Augustine Beach, FL
If you can afford to get your degree without a loan or with subsidized federal loans then do it. I would not recommend taking out private unsubsidized loans. I owe over $80,000 in subsidized federal loans for my law school degree and while I do make decent money, it really isn’t enough to justify the loans quite yet and I have been practicing for over 4 years.
The nice thing about federal loans is you can defer or place them in forbearance for up to five years after graduation which should allow you time to establish yourself and start making enough money to pay them back. I would say that it has been a saving grace for me to be able to place mine on hold while I was unemployed and underemployed following graduation. When I start paying them back next year I know that I will have no problem making payments.
The bad thing about federal loans is that you can never make them go away through a bankruptcy. You might be able to refinance them through a private loan consolidation but so long as they remain federal loans, the only way out of them is to pay them off or die. Filing for bankruptcy can delete a private loan which is why the interest rates tends ot be so much higher than the interest rates on federal loans.
Post # 13
Me too… I’ve got about $15,000 in subsidized and $2000 in unsubsidized. And I’ve got a large interest-free loan that I won’t have to pay back if I graduate on time with a 3.0 GPA. That loan saved me from using the federal loans more than I did. I’ve been really sick in recent semesters, so working wasn’t really an option.
FI, though… FI has some $50,000+ in student loan debt. Not looking forward to helping pay that off…
Post # 15
I have $42k in student loans, both subsidized and unsubsidized. I DID work during school, but I made just enough to pay bills and eat–there was NO way I could have paid my tuition, too. Unfortunately, I make barely more with my BBA than what I did working retail.
Your student loans go into repayment six months after you graduate.
Post # 16
I got enough money in scholarships and working during college that I didn’t have loans, but my graduate program is a different story. I’ll be in about the same boat as cstarkwe when I’m done, but probably not earning as much… :/
It’s a combo of subsidized and unsubsidized as well!