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Starting to repay student loans..

The last post in this topic was posted 2773 days ago. 

 

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My husband and I are both currently trying to do a major credit haul and gets our scores boosted.

 

I went to school part-time from 05-09, I borrowed very very unwisely and now I am about $22000 dollars in school loan debt. Ugh, they shouldn't give a 18 year old mom that much money without explaining more. Anyways my fault for not asking more questions.

 

All these years my loans were in IBR at $0 per month.

 

I am currently back in school finishing my bachelors degree. So now Aes says my loans won't go back into repayment until I am out of school again for 6 months. I am currently going part time and still looking at another 3-4 years to finish.

 

Should I not worry about the loans? Or .. My thoughts were to take one of the smallest $2100 and start paying my minimum payment or more each month. I am not worried about defaulting as my dh and I are in a place where we could afford to pay that. It just makes me sick to think of having all that debt hanging over my head when I graduate.

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If you make payments, pay the loans that are unsubsidized because they continue to accumulate interest even when you're in school.

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If you make payments, pay the loans that are unsubsidized because they continue to accumulate interest even when you're in school.

@xelda: Very good advice.

 

Separate the unsubsidized loans out first. Then set up automatic payment for interest only​ on all of your subsidized loans. Lastly, have your loan agent separate the loan with the highest interest rate and largest sum. Whatever money you have left over after interest should go directly to this loan. This method is not the most cost effective, but it is very satisfying and does save some money over just paying them all equally and it's a fairly easy strategy.

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The loans that you took for your previous schooling, you almost certainly used your 6 month grace period already. This means when you drop below half time status, they will go into repayment within 60 days. Just something to watch out for; don't assume the loans will grace when you graduate/take a break/drop out etc.

 

Anyways, with a loan debt like that and above do you plan on doing any public service jobs? Are you alright with having the debt for about 10 years? Research public service loan forgiveness, a lot of employers will qualify.

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You might want to reconsider your time in school - if you exceed 150% of the amount of scheduled time to complete a bachelors degree (as stated in the school SAP Policy) you may not have any more Financial Aid eligibility; therefore, how will you pay for your education? You need to complete your bachelors degree as quickly as possible and not be a part-time student.

 

You need to contact your school to determine if you will have enough Financial Aid eligibility to complete your Bachelor's Degree since you've already have 4 years of undergraduate study without completion; otherwise, you will need to take out a Private loan to complete your program of study.

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You might want to reconsider your time in school - if you exceed 150% of the amount of scheduled time to complete a bachelors degree (as stated in the school SAP Policy) you may not have any more Financial Aid eligibility; therefore, how will you pay for your education? You need to complete your bachelors degree as quickly as possible and not be a part-time student.

 

You need to contact your school to determine if you will have enough Financial Aid eligibility to complete your Bachelor's Degree since you've already have 4 years of undergraduate study without completion; otherwise, you will need to take out a Private loan to complete your program of study.

At my university, SAP is based on attempted hours (240 is the limit), not the number of years of study.

Edited by xelda

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Students receiving financial aid must complete their program of study within a reasonable time frame. The maximum time frame is 150% of the published length of the academic program or certificate (to include all transfer credit hours). Limited developmental coursework will not be counted in the maximum time frame.


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You might want to reconsider your time in school - if you exceed 150% of the amount of scheduled time to complete a bachelors degree (as stated in the school SAP Policy) you may not have any more Financial Aid eligibility; therefore, how will you pay for your education? You need to complete your bachelors degree as quickly as possible and not be a part-time student.

 

You need to contact your school to determine if you will have enough Financial Aid eligibility to complete your Bachelor's Degree since you've already have 4 years of undergraduate study without completion; otherwise, you will need to take out a Private loan to complete your program of study.

At my university, SAP is based on attempted hours (240 is the limit), not the number of years of study.
This is what the head of financial aid told me as well, it's not so much the time you are in a school. It's based on attempted hours.

 

Every year you receive financial aid it is based on half time or full time status. You are eligible for a lifetime max of 600%. Each full time year is = to 100%. You can go part time that year and use only 50%.

Edited by momma2tworockstars

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If you make payments, pay the loans that are unsubsidized because they continue to accumulate interest even when you're in school.

@xelda: Very good advice.

 

Separate the unsubsidized loans out first. Then set up automatic payment for interest only​ on all of your subsidized loans. Lastly, have your loan agent separate the loan with the highest interest rate and largest sum. Whatever money you have left over after interest should go directly to this loan. This method is not the most cost effective, but it is very satisfying and does save some money over just paying them all equally and it's a fairly easy strategy.

This is great advice! Thanks.

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