I just finished paying my federal loans last month (MM: snowballing that payment and will pay off the non-federal loans next month, woohoo!). I got an email from Navient the other day saying congrats on paying them off, can you tell us how you did it? Apparently just sharing my story on their website/materials can inspire others to do it too! I don't think a lack of success stories is what's stopping people from paying.
Just out of curiosity, about how much did you owe?
Only because I owe a ton and have been unable to pay them for a long time. Granted, I'm not just ignoring them, they've been in forbearance and I pay interest when I can. We live off a new teacher's salary and another fairly low salary for the area we live in. My lowest payment they offer is like $500 a month and we just can't do it right now.
I graduated from UT in 2009, and I owed about $35k in federal loans (Sallie Mae at the time, all at 6.8% i think), and had another 19k in private loans (that did include a loan that actually went to my brother, but my parents cosigned on both, and the two loans were grouped together; I paid both groups because he was not able to pay them back). All were un-subsidized, so that includes accrued interest that magically became part of the principal when repayment started. I also had a 13k scholarship and worked all 4 years for spending money/paid my own rent the last two years. I did live/eat on campus the first two, though.
Basically, I got a good job as a nurse as soon as I graduated, which pays well. My husband has zero school debt because his parents payed for his college completely. I threw way more than the minimum at the loans since day 1 (about $740/month) and didn't have any other personal debt (my car from high school was paid off). So, while I am proud that I've paid them off, and I do think I made some good financial/life decisions, I don't think sharing that story will help anyone who doesn't have the ability to put 25% of their budget each month towards SLs, or get overtime fairly easily, etc.
FWIW, when I graduated, my exit counseling was an email with a link to a page I had to read with a box to check I read it. I don't remember any initial financial counseling, other than my dad talking to me about the loans and making it clear that even though some of them were "parent" loans, I would need to be the one paying them all back.
They couldn't find anyone else to showcase the problems with the system? I can think of dozens examples of people struggling to pay loans, and they work full time and keep paying on them monthly just to avoid default.
Like the public defender who basically lived out of his office and gym for something like 6 mos.
Above the Law did a story or two on him earlier this year. No idea if he was current on his loans or not, though.
Just out of curiosity, about how much did you owe?
Only because I owe a ton and have been unable to pay them for a long time. Granted, I'm not just ignoring them, they've been in forbearance and I pay interest when I can. We live off a new teacher's salary and another fairly low salary for the area we live in. My lowest payment they offer is like $500 a month and we just can't do it right now.
I graduated from UT in 2009, and I owed about $35k in federal loans (Sallie Mae at the time, all at 6.8% i think), and had another 19k in private loans (that did include a loan that actually went to my brother, but my parents cosigned on both, and the two loans were grouped together; I paid both groups because he was not able to pay them back). All were un-subsidized, so that includes accrued interest that magically became part of the principal when repayment started. I also had a 13k scholarship and worked all 4 years for spending money/paid my own rent the last two years. I did live/eat on campus the first two, though.
Basically, I got a good job as a nurse as soon as I graduated, which pays well. My husband has zero school debt because his parents payed for his college completely. I threw way more than the minimum at the loans since day 1 (about $740/month) and didn't have any other personal debt (my car from high school was paid off). So, while I am proud that I've paid them off, and I do think I made some good financial/life decisions, I don't think sharing that story will help anyone who doesn't have the ability to put 25% of their budget each month towards SLs, or get overtime fairly easily, etc.
FWIW, when I graduated, my exit counseling was an email with a link to a page I had to read with a box to check I read it. I don't remember any initial financial counseling, other than my dad talking to me about the loans and making it clear that even though some of them were "parent" loans, I would need to be the one paying them all back.
Sounds like you went about this in a very smart way. I'm very much the opposite, not that I'm not smart, it's just financially it's been difficult. Out of undergrad I worked in a non-profit and didn't make much. I paid the monthly fee, but no more than that because I couldn't afford it.
I went back for my masters and had to finance them almost entirely through loans because we didn't have the means to otherwise. It was worth it. I have a job I love. We live within our means now but we aren't able to afford too much otherwise. It'd be nearly impossible to pay what they want me to pay each month, so I end up having to put them in forbearance and I try to pay the interest when I can.
It just sucks because it's always looming over me. It's a large amount, but not crazy. (About 70K my poor brother has about 200K) I Just wish degrees were more in line with what you'd make in the profession you are studying. I'm a teacher. I paid 70K to get the degrees I needed, but I make WAY less than 70K per year. It's like a hamster wheel.
I've killed myself working extra jobs these past few years to try to keep up and I'm missing quality time with my kids. It's just a tough place to be in.
I wish high schools did better counseling before people took out the loans. And ditto OPs, my law school's financial aid office was unhelpful. I sought information on different types of loans and got zero feedback. I guess there's no incentive to really talk to students since it's pretty much a 'take or leave it deal.' I'm guessing they stock a pamphlet on federal loans, private loans, and one called "do you have a rich Aunt?"
I took the thorough exit counseling after law school (and I think during?) and just remember feeling annoyed. They kept telling me to pay interest in school and pay extra (with what? why do you think I took out loans?). Laying it all out in exit counseling seems like too little too late. I had already taken out all the loans - thank goodness I had a job lined up.
I'll AW this - I'm planning on paying off my federal loans by the end of the year <) (I still have plenty of private ones though....)
Post by Velar Fricative on Aug 24, 2015 8:22:25 GMT -5
Maybe I'm just cynical, but I don't feel like I had zero information about my student loans. I calculated things like crazy starting at age 18. The problem is, while I estimated what my monthly payments would be in the future, it's a very abstract concept until you're actually out there in the real world with a job. Like, how do I know if $300/month is manageable for me if I don't know what the hell I'll be doing after college because, well, I'm 18 years old and it's tough to pick the right career or know how much I'll be making at that point? The numbers just don't mean much until you're actually in repayment mode.
I have mine thru sallie mae and they have always been flexible with payment (deferment, forbearance, income based payments, graduated payments, interest only payments). They would rather see you pay something than nothing. I don't have any sympathy with people whining and not making payments.
Not always the case. I had loans through them for a for-profit culinary school. I did not make enough in the culinary field to repay them, and went back to graphic design right at the beginning of the economic collapse. I lost my graphic design job. I immediately called my creditors to lower my payments until I was employed again, but when I called Sallie Mae, I was told that my loan did not offer income-based repayment, forbearance or deferment. Pay all or pay nothing. Thankfully, I had family to help me out. Others are not so lucky.
Post by sparkythelawyer on Aug 24, 2015 12:11:02 GMT -5
We will never take SL reform as a serious issue in this country. In part because it is far too easy to look at people like Mr. San Francisco here and not address the serious issue of skyrocketing higher ed costs and the ease in which people can borrow funds. It is far too easy to blame the individual student as a lazy millenial than it is to tackle the system itself.