My loans went into repayment last month. I made payments the entire time I was in school so the interest never capitalized, but now I'm feeling the full weight of accumulating interest on the subsidized loans. Is there anything I can do to reduce the interest rate? My interest rate is 6.55% (because I'm enrolled in Kwikpay). Consolidating won't get me a lower rate if the loans are all the same rate, correct?
A few facts:
- I currently owe $42K in federal loans.
- I'm on the extended repayment plan.
- I have the minimum payment of $293.17 auto-debited monthly to get the .25% reduction.
- On top of that, I pay an extra $80 per week.
- I will throw an occasional $25-$50 rebate check from my Citi Forwards rewards.
But even with this, it's still going to take me about 7 years to pay off. Are there any tricks or tips that I don't know about?
Is there anything else I can do to pay SL off faster?
Started by
xelda
, Aug 19 2012 11:02 PM
3 replies to this topic
#1
Posted 19 August 2012 - 11:02 PM
#2
Posted 20 August 2012 - 07:09 AM
I congratulate you for doing so well in completing your degree and the progress you have made on your payments. I will be in your shoes in eight semesters when I complete my Master's...I hope!
I also plan to make at least interest payments while still in school if I can. That is my plan. I will have to do the IBR, as that is the only way I can live a semi-normal life. I am hoping with a master's degree in my field i can increase my income but I know there is no guarantee at all. I could lose my job at anytime since my program relies heavily on medicaid funding. C'est la vie!
I haven't even figured out how long it will take me to pay off the loans or the total amount of loans I will need to complete my degree. I do have a partial scholarship; though. OT: I am trying to be frugal as I can in my personal life. If there are proceeds from the loans I will use it to purchase books at the lowest price. I have several on Amazon and they are all ready in my possession. I will need to pay off the laptop as well. Other expenses: transportation, parking, food, school supplies...they all add up. I am very lucky as I can buy reduced fare on my local commuter bus. The weekly pass costs me $15.00 vs $37.50 normal fare. I will have to scrounge around for free parking on the weekends when I need to be on campus as my bus does not run on the weekends. The other good news was the school gives free to students (via a d/l) all the software. I had none and now have Office 2010 and Creative Suites package. That has saved me megabucks.
I also plan to make at least interest payments while still in school if I can. That is my plan. I will have to do the IBR, as that is the only way I can live a semi-normal life. I am hoping with a master's degree in my field i can increase my income but I know there is no guarantee at all. I could lose my job at anytime since my program relies heavily on medicaid funding. C'est la vie!
I haven't even figured out how long it will take me to pay off the loans or the total amount of loans I will need to complete my degree. I do have a partial scholarship; though. OT: I am trying to be frugal as I can in my personal life. If there are proceeds from the loans I will use it to purchase books at the lowest price. I have several on Amazon and they are all ready in my possession. I will need to pay off the laptop as well. Other expenses: transportation, parking, food, school supplies...they all add up. I am very lucky as I can buy reduced fare on my local commuter bus. The weekly pass costs me $15.00 vs $37.50 normal fare. I will have to scrounge around for free parking on the weekends when I need to be on campus as my bus does not run on the weekends. The other good news was the school gives free to students (via a d/l) all the software. I had none and now have Office 2010 and Creative Suites package. That has saved me megabucks.
#3
Posted 12 November 2012 - 05:38 PM
Cosmos, what you list is peanuts and will not add much to anything noticeable.
To original poster, I hope you will get better jobs throughout the 7 years and your salary will go up, thus, your ability to pay more.
To original poster, I hope you will get better jobs throughout the 7 years and your salary will go up, thus, your ability to pay more.
#4
Posted 12 November 2012 - 05:48 PM
TexasGuy...I tried. I just found out now my full time employment may be eliminated. Great. Now I am really screwed if I lose my job.
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