educational loan payback

**disneysteve** · 07-25-2010, 08:24 AM

Best way to repay your school loans is to live as far below your means as possible and direct as much of your free cashflow as possible to loan repayment. I graduated with over 100K in loans and the loans had a 25-year repayment schedule. I paid them off in 12 years by doing just what I said. No big secrets. Spend as little as you can and get rid of the debts.

**Debt Vigilante** · 07-25-2010, 04:47 PM

Originally posted by disneysteve View Post

Best way to repay your school loans is to live as far below your means as possible and direct as much of your free cashflow as possible to loan repayment. I graduated with over 100K in loans and the loans had a 25-year repayment schedule. I paid them off in 12 years by doing just what I said. No big secrets. Spend as little as you can and get rid of the debts.

Ditto... I have about 60K left on mine. i just started paying on them last year when I graduated from my Master's program. Since January 1, 2010 I have paid off $12,694.93. I just did a post on my blog about it if you want to check it out or email any specific questions: Debt Vigilante

Good luck and stay encouraged, its not as bad as some people make it out to be.

**Stuartthomas** · 07-25-2010, 09:50 PM

reply

After you graduate, leave school, or drop below half-time enrollment, you have a period of time before you have to begin repayment. This "grace period" will be Six months for a Federal Stafford Loan (Direct Loan ProgramSM or Federal Family Education Loan (FFELSM) Program).Nine months for Federal Perkins Loans.

**Debt Vigilante** · 07-26-2010, 08:55 AM

Originally posted by Stuartthomas View Post

After you graduate, leave school, or drop below half-time enrollment, you have a period of time before you have to begin repayment. This "grace period" will be Six months for a Federal Stafford Loan (Direct Loan ProgramSM or Federal Family Education Loan (FFELSM) Program).Nine months for Federal Perkins Loans.

So what are you suggesting with this?

**jpg7n16** · 07-26-2010, 10:22 AM

Originally posted by viswanath View Post

could someone tell me what is the best way to pay back the educational loan. i mean the term within which the loan should be repaid and stuff like that...... and as i am just starting my career also i would like to know how to reduce tax amount paid ???

Sorry what tax amount are you refering to?

There is an interest deduction for Student Loan interest. It may be taken whether you do or do not itemize if your income is below certain limits.

Please see the following links from the IRS for more details:

General:
Tax Topics - Topic 456 Student Loan Interest Deduction

Specifics: (chapter 5)
Publication 970 (2009), Tax Benefits for Education

educational loan payback