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geekhack Community => Off Topic => Topic started by: WhiteRice on Thu, 10 February 2011, 18:03:34

Title: Any tips on paying off student debt?
Post by: WhiteRice on Thu, 10 February 2011, 18:03:34
I know I can deduct $2500 in interest payments on my taxes per year.

Anything else? My family doesn't know much. The reality of graduation and having to pay it all back has just recently hit me.

I plan on having a pretty aggressive payment plan. I'm pretty organized when it comes to my finances.

I have about $10k in savings. I was going to use it to get a car, but if I put it towards my loans it's pays off like three fold on the back end. I was pretty bummed about it even though it makes good fiscal sense.

I know I haven't been around too much. Working four days a week and going to night school kinda eats up my time. Any help would be appreciated.
Title: Any tips on paying off student debt?
Post by: Ekaros on Thu, 10 February 2011, 18:34:14
Is it cheper loan than others what you can get?

Also, keep a buffer in any case, if there is any issue it helps over them.
Title: Any tips on paying off student debt?
Post by: EverythingIBM on Thu, 10 February 2011, 18:37:12
Quote from: WhiteRice;293103
I know I can deduct $2500 in interest payments on my taxes per year.

Anything else? My family doesn't know much. The reality of graduation and having to pay it all back has just recently hit me.

I plan on having a pretty aggressive payment plan. I'm pretty organized when it comes to my finances.

I have about $10k in savings. I was going to use it to get a car, but if I put it towards my loans it's pays off like three fold on the back end. I was pretty bummed about it even though it makes good fiscal sense.

I know I haven't been around too much. Working four days a week and going to night school kinda eats up my time. Any help would be appreciated.


I got a tip for you:
stop buying keyboards, lol.
Will save you a good chunk.

Pay off loans. PAY THEM OFF. Paying interest just makes you LOSE MONEY! The faster you get loans out of your hair, the more money you'll inevitably make.
Title: Any tips on paying off student debt?
Post by: kill will on Thu, 10 February 2011, 18:44:57
put the 10k on black
Title: Any tips on paying off student debt?
Post by: WhiteRice on Thu, 10 February 2011, 18:55:28
Quote from: kill will;293121
put the 10k on black
I'm going to AC this weekend. I'm thinking about doubling once, then a few more times.
Title: Any tips on paying off student debt?
Post by: Ekaros on Thu, 10 February 2011, 19:01:45
Quote from: WhiteRice;293126
I'm going to AC this weekend. I'm thinking about doubling once, then a few more times.


Nah, 13 baby, 13 baby! ;D
Title: Any tips on paying off student debt?
Post by: JelinaNU on Thu, 10 February 2011, 19:23:26
Make certain that when you make payments in excess of your monthly minimum you verbally specify, to a human being whose name you record, that you want to put the excess/difference toward the principle. This seems like it should be a given. It's not. Buried in the fine print is a clause that places all extraneous payment toward future months' minimums unless you request otherwise, making it impossible to ever pay down your debt early. Every student loan has this clause.

Oh, and keep meticulous notes.
Title: Any tips on paying off student debt?
Post by: roadblock2thesun on Thu, 10 February 2011, 20:31:37
I have a nasty boat load of loans as well, like 150k plus. I just chip away at them as best I can. I make sure to put some money away in case I lose my job or the car brakes down. Any extra money I find goes into my loans.
Title: Any tips on paying off student debt?
Post by: wanabe on Fri, 11 February 2011, 00:22:01
hmmm...honestly if you have a subsidized loan, you want to consider that it's probably the 'cheapest' type of loan that you will ever get.  pay it off last if you have other types of debt.  here's a few things that i would have told myself when i graduated from college..

-buy a reliable, used car and drive it to the ground.  it sucks making car payments and comprehensive insurance
-set up automatic withdrawal for savings and investments and dont look back.  once you get used to living life with a certain amount of disposable income, it's hard to dial it down.  
-if you're young, single, with no dependents, now is the time to live a frugal life and put the rest away or pay off your debts.  expenses have a tendency to grow with income, but once you get older and have a family, your need for expenses will probably grow faster than your income can provide.
-pay off your credit cards if you carry a balance.  even better, pay it off full every month.
Title: Any tips on paying off student debt?
Post by: msiegel on Fri, 11 February 2011, 00:40:47
if the economy tanks and there's massive inflation, you'll want to hold on to that debt because it will become worthless.

if that *does* happen, you'll want to spend the savings quickly because it too will become worthless!

so, the answer is to buy more keyboards ;D
Title: Any tips on paying off student debt?
Post by: bugfix on Fri, 11 February 2011, 01:44:41
Lucky me, my grandfather already financed my study...
Title: Any tips on paying off student debt?
Post by: Ekaros on Fri, 11 February 2011, 03:57:42
Quote from: bugfix;293263
Lucky me, my grandfather already financed my study...


Yeah, I have some support too... 2,7k€ of loan which from 2,2k€ sits on hi-intrest account... Now I could get another 2,7k or around, but I don't know where to use it...
Title: Any tips on paying off student debt?
Post by: gore on Fri, 11 February 2011, 05:14:25
My current plan to avoid paying off my £20k of student debt, is simply to never make enough money for the repayments to kick in... which is going really well as I can't find a job :(
Title: Any tips on paying off student debt?
Post by: instantkamera on Fri, 11 February 2011, 06:26:21
You shouldnt need 10K to buy a car. But a decent used vehicle, put a chunk away, and put a nice chunk on your SL. As others have said, this is likely on of the lowest interest loans you will ever have, so dont be in a hurry to pay it of if your goal is to acquire more debt. But, paying a good chunk off the principle will get you started, and lower the interest as well as the principle shrinks.
Title: Any tips on paying off student debt?
Post by: itlnstln on Fri, 11 February 2011, 07:40:21
Student loans are considered "good" debt, and as such there is no real need to get them paid off in any hurry other than to not have the debt altogether.  That, and as others have said, those loans are cheap, so you're not really getting raped too badly on interest.  If you have any other debt like credit cards, get those paid off first.  It's OK to pay student loans over time, and it can also be beneficial in building your credit as it shows creditors that you are reliable to pay debt over time.*  I would invest the 10K and get a cheap but reliable used car and focus on building your savings instead of putting a huge amount of concern on your student loans.

*This can be good and bad as it makes your credit rating very good.  In turn, you may be qualified for credit you really can't afford (cars, houses, etc.).  I've been burned by having a really good credit rating, so be forewarned.
Title: Any tips on paying off student debt?
Post by: firestorm on Fri, 11 February 2011, 08:11:07
FWIW, my wife's student loans cost us $800 per month.  That's on a 30 year term, with about 19 years to go.  That normally wouldn't be an issue.  She is an attorney and easily could have found a corp job that paid 6 figures.  But she has known since she was about 14 that she wanted to help people, and so she is a public interest attorney (not a public defender.)  She makes less than our friends that are teachers, and we know how "well" paid they are.

While you definitely want to pay those down as best you can, as fast as you can, we don't let that debt control us.  It is what is it.  The best we could do was consolidate it, but under a particular consolidation program for student loans.  It locked the interest rate in at a low rate (well, low for the time) with one much smaller payment, but stretched the terms out on the money involved out to 30 years.  We opted to leave out smaller loans and paid aggressively on those.  I believe most of our friends with large student debt did the same.  My best friend - a commercial airline pilot - certainly did.

There's a couple key things to not overlook.  Student loans are backed by nothing tangible, yet they want to get paid.  They tend to be more flexible or forgiving as a result.  If you encounter trouble with income, you can generally put student loans into forbearance, with little to no consequence (other than delaying pay off).  Try doing that with a home or vehicle loan.  It's actually part of our backup plan, as student loans + daycare = $2100 per month.  On the other hand, student loans are excluded from bankruptcy, so the only way to be rid of them is to pay them off or die.

For married couples, there can be some temptation to consolidate loans as a couple.  We considered it, since it could be a way to get today's low rates.  However, with the way things are now, if my wife passed away, her loans would die with her.

Our method isn't optimal.  But it affords us the ability to live comfortably and works for us.  For anyone else, I think you have to look at both short term and long term plans.  This may mean waiting until you get a job and have an idea of what you can afford to do.  If you're single, I'd likely be somewhat aggressive for a while, and take a another look when things have settled down.  I mean, you do want to pay aggressively when you can, but it is better to pay aggressively on home and auto loans, or otherwise avoid other debt as much as possible.  Even if a student loan is your only debt, it will at least build your credit record.
Title: Any tips on paying off student debt?
Post by: itlnstln on Fri, 11 February 2011, 13:11:54
Quote from: ripster;293452
But MY advice is never take financial advice from the Internet.  Read this book.  Save money.  Give to charities.  Be happy.

This is very confusing.  I want to take your financial advice and read that book, but your first statement makes me think this book is full of bull****.  Then again, you seem to be doing well, but I don't know if you followed the advice in the book...

*brain explodes*

EDIT:  I bit.  Just bought it for my Kindle.
Title: Any tips on paying off student debt?
Post by: kill will on Fri, 11 February 2011, 13:17:44
think and grow rich is the ONLY guide to investing.
Title: Any tips on paying off student debt?
Post by: J888www on Fri, 11 February 2011, 14:24:41
Seems I am very lucky not to be in debt, have a few bunches of Bananas in the Bank although the interest rates are practically zero, after the financial market collapse. The Bankers are smarter nowadays, they charge higher interest rates and offer lower dividends.
But fear not as the World would have a cataclysmic turn of event on the 21st. of December in 2012 and subsequently wiping out all your debts and most of Mankind. So take your $10k and enjoy Life within this short span of remaining Time.
I for one intend to purchase more...


In regard to the financial holy grail, I put some bananas on the Bankers already purchased it too, in order to deduce ways to keep your debt at nice interest(ing) levels.

Seriously. I have no clue as to what you should do.
Title: Any tips on paying off student debt?
Post by: J888www on Fri, 11 February 2011, 14:48:38
There's loads on eBay (http://cgi.ebay.co.uk/LEGO-Minifigure-GORILLA-SUIT-Series-3-FREE-COMBINE-8803-/220708622428?pt=LH_DefaultDomain_0&hash=item336342505c).
Not sure if the cheaper ones have the "Creepy Eyes".
Seems seller have many other types too. Didn't realize Lego can be so expensive.
Title: Any tips on paying off student debt?
Post by: chimborazo on Fri, 11 February 2011, 15:50:31
Quote from: msiegel;293241
if the economy tanks and there's massive inflation, you'll want to hold on to that debt because it will become worthless.

if that *does* happen, you'll want to spend the savings quickly because it too will become worthless!

so, the answer is to buy more keyboards ;D


hehe. although unrelated - it reminds me of this article on the ft

Title: Any tips on paying off student debt?
Post by: microsoft windows on Fri, 11 February 2011, 17:07:17
Quote from: ripster;293474
That book was my bible the year I graduated.  

And about that never listen to Internet advice thing.... bubbling along at 52 week high...
Show Image
(http://www.thestreet.idmanagedsolutions.com/charts/common/quote.chart?SYMBOL_US=AAPL&WIDTH=275&HEIGHT=140&TIME_SPAN=1Y&XAXIS_LABEL=1)


My financial advice for everybody is to buy your sweety an iPad and show you care about him/her on Valentine's day.


(http://images2.memegenerator.net/ImageMacro/4204383/I-LIKE-APPL.jpg?imageSize=Medium&generatorName=Raptor-Roger)
I wouldn't take his financial advice.
Title: Any tips on paying off student debt?
Post by: ricercar on Fri, 11 February 2011, 18:52:55
Never take a loan on a purchase that depreciates, such as cars.

If you're going to borrow money, pay off the highest interest loans FIRST. This means pay your credit cards before student loans.

Student loans are good debt no matter how you slice it. Pay them off LAST.
Title: Any tips on paying off student debt?
Post by: ricercar on Fri, 11 February 2011, 18:53:45
Never take a loan on a purchase that depreciates, such as cars.

If you're going to borrow money, pay off the highest interest loans FIRST. This means pay your credit cards before student loans.

Student loans are good debt no matter how you slice it. If you have multiple forms of debt, pay off student loans LAST.
Title: Any tips on paying off student debt?
Post by: ricercar on Fri, 11 February 2011, 18:54:50
Never take a loan on a purchase that depreciates, such as cars.

If you're going to borrow money, pay off the highest interest loans FIRST. This means pay your credit cards before student loans. If you have multiple forms of debt, pay off student loans LAST, assuming they have lowest interest.

Student loans are good debt no matter how you slice it.
Title: Any tips on paying off student debt?
Post by: instantkamera on Sun, 13 February 2011, 20:05:05
Quote from: ripster;293474

My financial advice for everybody is to buy your sweety an iPad and show you care about him/her on Valentine's day.


Yeah, clear out the stock on the ****ty, crippled first gen models to make room for the real iPad coming just around the corner.
Title: Any tips on paying off student debt?
Post by: WhiteRice on Wed, 23 February 2011, 00:45:57
This is the first time I've had a chance to check out the thread. Thanks for all your help guys. I appreciate and value your insight.

I'm def going to check out that book by Tobias.
Title: Any tips on paying off student debt?
Post by: instantkamera on Wed, 23 February 2011, 06:11:51
Tobias Fünke?

I wouldn't read anything written by an Analrapist:

(http://www.threadpit.com/photos/all_styles/217.gif)
Title: Any tips on paying off student debt?
Post by: keyboardlover on Wed, 23 February 2011, 06:28:00
"Douche chillllll!"
Title: Any tips on paying off student debt?
Post by: Ekaros on Sun, 27 February 2011, 09:12:38
Quote from: kalrykh;301724
Fake your death.  Magically all debts disappear :p


I think this might have some issues, like diploma would be useless... Not bad idea, altogether, just make sure you cash out whole property and have scheme to set it so you can later receive it back...
Title: Any tips on paying off student debt?
Post by: didjamatic on Sun, 27 February 2011, 09:45:34
I haven't read replies so if this is a repeat, sorry.  Student loan debt is not a big deal compared to other debts.  You get tax deductions on it and the rates are usually quite low.  I'd focus on keeping out of other debt as much as possible.  Your car payment interest is not tax deductible, student loan interest IS, so that's something to keep in mind.  I personally would rather pay cash for a car and stay clear of credit cards as you pay your student loans down but I'm not a financial advisor, I'm a geek and part time super hero.
Title: Any tips on paying off student debt?
Post by: Canada on Mon, 28 February 2011, 11:32:55
Quote from: ricercar;293685
Never take a loan on a purchase that depreciates, such as cars.

If you're going to borrow money, pay off the highest interest loans FIRST. This means pay your credit cards before student loans. If you have multiple forms of debt, pay off student loans LAST, assuming they have lowest interest.

Student loans are good debt no matter how you slice it.


Such common sense, such sound advice.
Title: Any tips on paying off student debt?
Post by: cheerios on Thu, 10 March 2011, 15:04:29
Hey white_rice, if you are looking for some good advice on paying off your student loans you should read this article http://mynextbuck.com/10-tips-to-help-you-pay-off-your-student-loans/ (http://mynextbuck.com/10-tips-to-help-you-pay-off-your-student-loans/) It kind of guides you through how to go about paying off your loans! Hope this can help you out!
Title: Any tips on paying off student debt?
Post by: kill will on Thu, 10 March 2011, 17:20:52
put the 10k on red
Title: Any tips on paying off student debt?
Post by: keyboardlover on Thu, 10 March 2011, 18:21:29
So when you finally sell, are you going to celebrate by buying tenkeyless cherry blue Leopolds for all GH members? :D
Title: Any tips on paying off student debt?
Post by: kill will on Thu, 10 March 2011, 18:50:25
ripster beware of head and shoulder and W patterns.  if i owned AAPL i would own it until i died and re invest every dividend and re buy at low points.  i would also jump ship if it was the opposite end of those patterns.  you may get google ****ed.
Title: Any tips on paying off student debt?
Post by: kill will on Thu, 10 March 2011, 18:52:13
your most likely safe though.  like pepsi.
Title: Any tips on paying off student debt?
Post by: kill will on Thu, 10 March 2011, 18:52:50
i dont have dandruff and i use head and shoulders.
Title: Any tips on paying off student debt?
Post by: kill will on Thu, 10 March 2011, 18:54:34
(http://www.tradersdaytrading.com/images/head-and-shoulders-pattern.jpg)
Title: Any tips on paying off student debt?
Post by: kill will on Thu, 10 March 2011, 18:55:07
there are like 50 billion people in china shorting aapl.  even at this time of day!
Title: Re: Any tips on paying off student debt?
Post by: rusellG on Fri, 10 January 2014, 05:45:12
Student debt is one of the major concerns of many students. This is usually the result of rising cost of college. A survey by researchers at the University of California, Los Angeles found that cost is becoming more of a factor in college selection. This shouldn’t be too surprising, as federal loan funding is drying up as tuition is going up, alongside the fact that it should be in the first place.
Title: Re: Any tips on paying off student debt?
Post by: Tym on Fri, 10 January 2014, 05:48:26
Mega-Necro!
Title: Re: Any tips on paying off student debt?
Post by: Oobly on Fri, 10 January 2014, 06:23:42
He does bring up an interesting point, though. In some cases it's better to jump straight into work (and do self study to learn more about the field) than getting a related degree first. By the time you complete the degree you have a massive debt and a piece of paper. If you started working straight away you have 3 years of work experience. Sometimes one counts more than the other, but it's getting rarer that the salary increase from having the piece of paper balances the debt. Sometimes the experience counts more even without the debt factored in and of course you have been earning (and hopefully saving) instead of building debt for 3 years.

On the other hand, there are some jobs you simply cannot do without the piece of paper (doctor, lawyer, etc..), so college still has its uses.

Anyone considering doing an MBA I would recommend to read "The Personal MBA" by Josh Kaufman before you commit to it.
Title: Re: Any tips on paying off student debt?
Post by: ricercar on Fri, 10 January 2014, 13:34:14
> … work experience. Sometimes one counts more than the other,
> but it's getting rarer that the salary increase from having the piece of paper balances the debt.

Citation needed. This is not true in Silicon Valley. Here you need the degree just to get a phone interview. Resumes showing experience without a degree go into the trash. When the next resume on the stack has a degree, you don't spend any time on non-degreed candidates. So say all the hiring mangers and headhunters I talk to since 2008, as well as all my non-degreed friends.

I've never regretted student loans. Education is something that cannot be repossessed, and it opens doors that are invisible to non-degreed people with only experience.
Title: Re: Any tips on paying off student debt?
Post by: HoffmanMyster on Fri, 10 January 2014, 13:51:29
Quote from: Tym on Fri, 10 January 2014, 05:48:26
Mega-Necro!

I didn't notice the date in the first post, thought to myself "who the hell are these people, I have never seen them before..."  Turns out they're from 2011.
Title: Re: Any tips on paying off student debt?
Post by: hashbaz on Fri, 10 January 2014, 15:12:50
Quote from: rusellG on Fri, 10 January 2014, 05:45:12
Student debt is one of the major concerns of many students. This is usually the result of rising cost of college. A survey by researchers at the University of California, Los Angeles found that cost is becoming more of a factor in college selection. This shouldn’t be too surprising, as federal loan funding is drying up as tuition is going up, alongside the fact that it should be in the first place.

Aaaand banned.  Thanks for playing!

edit: For future reference, I removed a link to a payday loan site from russellG's post.  Ad spam ==> ban.
Title: Re: Any tips on paying off student debt?
Post by: kmiller8 on Fri, 10 January 2014, 15:22:48
Quote
Any tips on paying off student debt?

Don't get in debt.

Most colleges in the US are structured in a way where if you don't make enough money to pay for college there are plenty of government assistance and local scholarships available to aide with payments.