Comments on: Student Loans: How to Pay Them Off and Build Wealth http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html Bridging the gap between saving money and investing Tue, 07 Oct 2008 21:06:59 +0000 http://wordpress.org/?v=2.6.1 By: Audrey http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-376994 Audrey Tue, 29 Jul 2008 14:09:17 +0000 http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-376994 I read your article on student loans and it was the best I've read. Maybe you can help me, I'm trying to locate a bank or a finance facility having low interest rates for paying off student loans. I've been checking in my area, Hercules, Ca and the interest rates are pretty high. I'm doing this for my niece and she presently owes $50,000 and is being charged 10% interest on a monthly basis and the $amount she is paying is about to wipe she and her husband out. Her husband is in the military and getting ready to go over sea's and the combination of the two is really getting to her. Any subjestions will be appreaciated. I read your article on student loans and it was the best I’ve read. Maybe you can help me, I’m trying to locate a bank or a finance facility having low interest rates for paying off student loans. I’ve been checking in my area, Hercules, Ca and the interest rates are pretty high. I’m doing this for my niece and she presently owes $50,000 and is being charged 10% interest on a monthly basis and the $amount she is paying is about to wipe she and her husband out. Her husband is in the military and getting ready to go over sea’s and the combination of the two is really getting to her. Any subjestions will be appreaciated.

]]> By: Nancy http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-367331 Nancy Sun, 20 Jul 2008 14:35:14 +0000 http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-367331 I agree that the minimum payment plan is flawed because of the amount that interest adds to the loans. My loan is 27K and the amount I will pay after interest over the 20 yr course of my loan is 47K! I Have been paying for over a year and have yet to have even a single dollar go towards the principal. This year I plan on sending an extra $100 a month and as my salary goes up, so will the extra payment amount. The concept is interesting, but the omission in total amounts paid with interest makes it inaccurate. I agree that the minimum payment plan is flawed because of the amount that interest adds to the loans. My loan is 27K and the amount I will pay after interest over the 20 yr course of my loan is 47K! I Have been paying for over a year and have yet to have even a single dollar go towards the principal.
This year I plan on sending an extra $100 a month and as my salary goes up, so will the extra payment amount.
The concept is interesting, but the omission in total amounts paid with interest makes it inaccurate.

]]> By: Missy http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-360092 Missy Fri, 11 Jul 2008 02:59:14 +0000 http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-360092 This artical is stupid. Who the hell has to money to pay these stupid loans??!!? A college degree is about the equivalent of a high school dipola these days...basically, the degree isn't worth the paper that it is printed on. For someone who works hard, full time and struggles to pay just the minimum payment and only pays off $10 on their loans EVERY TWO YEARS...this plan is rediculous. Give me something I can really use. This artical is stupid. Who the hell has to money to pay these stupid loans??!!? A college degree is about the equivalent of a high school dipola these days…basically, the degree isn’t worth the paper that it is printed on. For someone who works hard, full time and struggles to pay just the minimum payment and only pays off $10 on their loans EVERY TWO YEARS…this plan is rediculous. Give me something I can really use.

]]> By: Zack http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-269294 Zack Fri, 21 Mar 2008 18:49:45 +0000 http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-269294 My wifes studnet loan payment is $290 a month...less than $90 goes to principal...how can that possibly be a good thing... PAY THEM OFF!! Ask how much you pay in interest by the time you pay it off... My wifes studnet loan payment is $290 a month…less than $90 goes to principal…how can that possibly be a good thing…

PAY THEM OFF!!

Ask how much you pay in interest by the time you pay it off…

]]> By: Marcus http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-255667 Marcus Thu, 28 Feb 2008 02:51:11 +0000 http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-255667 I'm going to be 24. I pay only the minimum amount on my loan and have been since I have had it. I don't plan on paying anymore than the minimum. Most people need to think longterm as opposed to the short-tern gratification paying off a bigger chunk of the loan. Mortgage Debt and Student Loan debt is GOOD debt. Paying off these GOOD debts only to keep your other BAD debt is financial suicide. You will bury yourself deeper. If you are inclined to pay off an extra 100 bucks a month and if you didn't you would just waste the 100 bucks on junk or actually put it into a savings account then you are better off putting it toward your student loan. If you actually invest this 100 dollars then that is the better choice. I’m going to be 24. I pay only the minimum amount on my loan and have been since I have had it. I don’t plan on paying anymore than the minimum. Most people need to think longterm as opposed to the short-tern gratification paying off a bigger chunk of the loan. Mortgage Debt and Student Loan debt is GOOD debt. Paying off these GOOD debts only to keep your other BAD debt is financial suicide. You will bury yourself deeper. If you are inclined to pay off an extra 100 bucks a month and if you didn’t you would just waste the 100 bucks on junk or actually put it into a savings account then you are better off putting it toward your student loan. If you actually invest this 100 dollars then that is the better choice.

]]> By: John Svid http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-254028 John Svid Mon, 25 Feb 2008 14:11:36 +0000 http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-254028 Wow great site! Some really helpful information there. I’m sorry for little off-topic, but I want to ask you about design of this site. Did you make this template yourself or got from any templates website? Looks pretty cool for me. Wonderful well this reading. Wow great site! Some really helpful information there.
I’m sorry for little off-topic, but I want to ask you about design of this site.
Did you make this template yourself or got from any templates website?
Looks pretty cool for me. Wonderful well this reading.

]]> By: Kevin http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-241795 Kevin Mon, 11 Feb 2008 20:12:15 +0000 http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-241795 Nicbarb, I think the only issue there is that the bank loan would likely have to be secured by some collateral, perhaps a lien on your home. This may not be the best thing for you. As for me, my wife and I combine for OVER $280,000 in student loan debt. Our combined monthly payment tops $1,500 per month. We can afford to carry it, but it's like an anchor around our necks. I don't know if it's better to pay them down little by little, or just keep making the $1500 payments for the next 20 years. Nicbarb,
I think the only issue there is that the bank loan would likely have to be secured by some collateral, perhaps a lien on your home. This may not be the best thing for you.

As for me, my wife and I combine for OVER $280,000 in student loan debt. Our combined monthly payment tops $1,500 per month. We can afford to carry it, but it’s like an anchor around our necks.

I don’t know if it’s better to pay them down little by little, or just keep making the $1500 payments for the next 20 years.

]]> By: Nicbarb http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-225179 Nicbarb Sat, 26 Jan 2008 15:42:23 +0000 http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-225179 I have over $100,000 in student loans, 60% consolidated and 40% private loans. My private loans are at 7.5 and 6.25. With the current lower interest rates, I am considering applying for a five year, lower interest bank loan, to pay off the private loans. Any thoughts? I have over $100,000 in student loans, 60% consolidated and 40% private loans. My private loans are at 7.5 and 6.25. With the current lower interest rates, I am considering applying for a five year, lower interest bank loan, to pay off the private loans. Any thoughts?

]]> By: steve http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-204659 steve Mon, 07 Jan 2008 21:42:53 +0000 http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-204659 Its been a Looooooong time since there was an interest rate spread like the example cited. Always pay your future self first. That is savings and investments. Max your 401 and any pretax benefit. Follow it up by maxing IRA contributions. Then you may fall below the limit for writing off the interest. What ever is left is your income. I payed my student loans off today. I am in repayment on three kids as we speak. I take my own advice. Its been a Looooooong time since there was an interest rate spread like the example cited. Always pay your future self first. That is savings and investments. Max your 401 and any pretax benefit. Follow it up by maxing IRA contributions. Then you may fall below the limit for writing off the interest. What ever is left is your income.

I payed my student loans off today. I am in repayment on three kids as we speak. I take my own advice.

]]> By: Allie http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-162307 Allie Sun, 25 Nov 2007 00:40:30 +0000 http://www.savingadvice.com/blog/2007/11/15/101886_student-loans-how-to-pay-them-off-and-build-wealth.html#comment-162307 Great article! I really like that you take the time to stress that everyone has to consider their own situation. I am *extremely* fortunate to have low, fixed rates on my student loans, but I, too, will be paying them off early - this year, in fact (if all goes well). Within the next two years, I plan on taking a job that will pay significantly less than my current one in order to gain the knowledge and experience which will (hopefully) lead to a higher-paying career. Having a smaller "financial footprint" will allow me *much* more flexibility during that time. But mostly, I'm looking forward to having one less bill to worry about! Great article! I really like that you take the time to stress that everyone has to consider their own situation. I am *extremely* fortunate to have low, fixed rates on my student loans, but I, too, will be paying them off early - this year, in fact (if all goes well). Within the next two years, I plan on taking a job that will pay significantly less than my current one in order to gain the knowledge and experience which will (hopefully) lead to a higher-paying career. Having a smaller “financial footprint” will allow me *much* more flexibility during that time. But mostly, I’m looking forward to having one less bill to worry about!

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