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I'm coming up on the start of year 7 for me. It's a wonderful program. I'll likely have closer to $200k forgiven.
that's awesome! I love it, and it's not really "free" money like people here like to claim. We still have to make 10 years of payments, and we have to work in public service for 10 years. I borrowed 60k, have paid 30k over about 9 years, and somehow still owe 73k. Crazy student loan math.
that's awesome! I love it, and it's not really "free" money like people here like to claim. We still have to make 10 years of payments, and we have to work in public service for 10 years. I borrowed 60k, have paid 30k over about 9 years, and somehow still owe 73k. Crazy student loan math.
I agree it's crazy. The interest is unrealistic, I've always said that. It's not fair that they make that much on a student trying to get ahead.
People can't realistically pay those loans back at 3+ times the amount.
that's awesome! I love it, and it's not really "free" money like people here like to claim. We still have to make 10 years of payments, and we have to work in public service for 10 years. I borrowed 60k, have paid 30k over about 9 years, and somehow still owe 73k. Crazy student loan math.
Can you explain how that’s working? Are those federal loans?
My loan was a ten year term and for simplicity let’s say I originally owed $30,000. It’s been many years since I’ve looked at it, but I think my cost in nominal terms was going to be like $35,000 to $40,000. But that’s cut at through inflation and the value of tax deductible interest.
I also even capitalized interest into the principle while I was in school and I was in a five year college track that took me six years.
How are people having loan balances that triple or in your case paying down 30k on only a 60k balance that has somehow gone UP?
Private loans? Some kind of shady consolidation company?
Can you explain how that’s working? Are those federal loans?
My loan was a ten year term and for simplicity let’s say I originally owed $30,000. It’s been many years since I’ve looked at it, but I think my cost in nominal terms was going to be like $35,000 to $40,000. But that’s cut at through inflation and the value of tax deductible interest.
I also even capitalized interest into the principle while I was in school and I was in a five year college track that took me six years.
How are people having loan balances that triple or in your case paying down 30k on only a 60k balance that has somehow gone UP?
Private loans? Some kind of shady consolidation company?
My loans are all federal direct loans, both subsidized and unsubsidized. I am on an income-based repayment plan, which is likely how my debt has increased despite paying an amount equal to half of the original loan. Federal interest for graduate loans is 6%.
My loans are all federal direct loans, both subsidized and unsubsidized. I am on an income-based repayment plan, which is likely how my debt has increased despite paying an amount equal to half of the original loan. Federal interest for graduate loans is 6%.
From what I just read, the income based repayment plan kicks up the term from 10 years to 20 years or more and then bases the payment on discretionary income. So I guess, in theory, someone would be paying an extremely low amount and not cutting the principle down on a ten year schedule. However, you’ve paid a large amount (30k)
6% isn’t that high of interest. Mine are similar to that at varying rates depending on timing and then subsidized or unsubsidized.
Certainly that’s not high enough to be kicking out an outcome of 12k higher principle after 30k of payments.
That math simply makes no sense to me. There has to be something more at play in your facts or something I’m completely missing.
From what I just read, the income based repayment plan kicks up the term from 10 years to 20 years or more and then bases the payment on discretionary income. So I guess, in theory, someone would be paying an extremely low amount and not cutting the principle down on a ten year schedule. However, you’ve paid a large amount (30k)
6% isn’t that high of interest. Mine are similar to that at varying rates depending on timing and then subsidized or unsubsidized.
Certainly that’s not high enough to be kicking out an outcome of 12k higher principle after 30k of payments.
That math simply makes no sense to me. There has to be something more at play in your facts or something I’m completely missing.
It’s crazy, isn’t it?
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