Student Loans SUCK.

[wednesday42]

Once upon a time, my husband and I were extraordinarily stupid and went to a school that obliged us to take out massive student loans. We were at least lucky in that our repayment is contingent upon our income, but it still means a chunk of money the size of a house payment gets sucked away every month. And, given my salary, I don't make enough

Comments

[misspinki777]

Oh gosh, sweetie! I'm so sorry! Oh, that's just terrible to hear! *is mad for you*

You'd think they'd be some kind of plan for educational purposes that would allow students to take out loans and pay them off without any interest at all. :(

If only I had a million dollars! I'd gladly pay it all for you! *massive hugs*

[wednesday42]

Aww... ^^ The ironic thing is, the rate is actually quite good - it caps at 8%. It's just that the total loan itself is so damn big.

I have to find out what year we started paying on it; according to the loan agreement, any remaining balance is forgiven after 25 years. I want to know how far I'm counting down! xD

[sign_of_milky]

OH that sucks!!

For some reason, I thought we don't have to pay interest on Student loans but I guess not.
I hope there is something you can do about it... like... loan from other place (which interest is low or nothing for year) to pay all the student loan one time?

[wednesday42]

I won't be able to find a better rate that will still let me pay as little as I do on this one. I just have to keep making payments until the payment period runs out - 25 years total - and they'll forgive what remains of the balance. The one bright side to all of this is that if we make it all the way without any late payments or anything, the amount they'll be forgiving will actually be more than what I originally borrowed! XD

sing it, sista!

[blythechild]

yes, I feel ya. I have 25 grand in outstanding student loans (exclusively from Art School; I already paid off university). I'm lucky in that the Canadian gov't doesn't care when you pay off yer loans so long as you make minimum monthly payments. I could be 90 and still making payments and they'd be happy as pigs in shit - the longer that you take to pay it off, the more they make back on interest.

My scheduled payback period is 25 years, but I'm aggressively upping my payments every 6 months, and therefore have shortened my payback period to 7 years, saving me roughly $40,000 that they would've made on top of the principle if I had stuck to the lower-payment-25-year-plan thing. bastards. Even though my interest is calculated at Prime Rate +1, I'm done with the "floating debt". I don't qualify for a debt reduction loan because I make too much money while simultaneously have too much debt, so my only solution is to speed pay this shit off.

If I ever go back to school, I'll be sure to pay for it UP FRONT.