Blowout Cards Forums
Holiday Madness

Go Back   Blowout Cards Forums > COMMUNITY > Off Topic

Off Topic This section may contain threads that are NSFW. This section is given a bit of leeway on some of the rules and so you may see some mild language and even some risqué images. Please no threads about race, religion, politics, or sexual orientation. Please no self promotion, sign up, or fundraising threads.

Reply
 
LinkBack Thread Tools Display Modes
Old 07-09-2012, 03:47 PM   #1 (permalink)
Member
 
paul06901's Avatar
 
Join Date: Aug 2009
Posts: 6,879
Question Is anyone good with student loan re-payment information?

I just got off the phone for an hour and literally have a headache.

And I still am confused exactly how things work.

I'll use my current situation, plus theoretical numbers here for reference.

I began my undergrad degree in 2002, and at that time I took out loans for some of my tuition costs.

I graduated in 2009 (took a year off in-between, and a few part-time semesters).

In 2010 I began my graduate program, and just graduated in May, 2012.


I now know that after deferment, repayment will be a major issue.


I have an EXTREMELY low-paying job, and I qualify for the Income Contingency Plan (or something like that), so they were telling my my monthly payment will be $70/month now.


Here is how my accounts work (same setup, but theoretical numbers).



(4) Accounts:

#1 - $22,000

--Group A (2.390%)


#2 - $15,000

--Group B (2.390%)


#3 - $18,000

--Group C (6.8%)


#4 - $25,000

--Group D (6.8%)



I believe the first 2 accounts were un-subsidized and the last two aren't? Or something like that? I'm not really sure!



I called the Loan Consolidation department because I figured it would be beneficial to simplify my accounts/payments.

That is when everything got confusing.

Based off the numbers, say the interest rate given under consolidation is going to be 4.9% (Including being under the Income Contingency Plan)

Is that good? Is that worthwhile?

She said that interest accrues daily.

She also stated that at the end of say a 10-year term the interest accrued at the current repayment plan of $80/month under the 4.9% would be around $70,000 (WTF!?!?! )



I have very low income, and I'm actively pursuing new employment with my (expensive!) credentials.

I obviously want what everyone wants, long-term repayment at low interest rate.

But what is my best option here?


I make such low income (Literally under $30,000/year) that I cant afford high payments, if I make low payments, my interest is still so high on such a total balance ($80,000 total). I my rent is 3/4 of my monthly income, and that doesn't include my other expenses (Gas/phone/car insurance/etc). I'm fearing that I'll soon be out on the street with this ridiculousness! I obviously am working hard to find a better, higher-paying job.


What are my options?

And how does interest accrue daily?! (4.9% ?)


I just need some clarification, and if anyone here can help that would be GREAT!!!


If you need any more info, let me know!


Thanks!!!
paul06901 is offline   Reply With Quote
Old 07-09-2012, 03:50 PM   #2 (permalink)
Member
 
paul06901's Avatar
 
Join Date: Aug 2009
Posts: 6,879
Default

Also, can someone give me a quick explanation of how the interest works?

Say 4.9% on a total loan of $80,000 ... how is it applied daily?

Is that saying that if it's a 10-year term, Every year I'll be paying $3,920 (4.9% of 80,000) for those 10 years?
paul06901 is offline   Reply With Quote
Old 07-09-2012, 04:03 PM   #3 (permalink)
Member
 
Ooosh's Avatar
 
Join Date: Oct 2011
Location: Toronto
Posts: 5,142
Default

I can't help you with this but it does accrue daily, just at a smaller rate.

Total owed x interest rate / 365 I think?

Eg. I had
38,000 x 4%-ish interest / 365 = $4.16 a day

Now I have
24,200 x 4%-ish interest / 365 = $2.65 a day

(I might be totally wrong)

Anyway, good luck and find a cheaper place to live!
__________________
@Ooosh_E on Twitter
Ooosh is offline   Reply With Quote
Old 07-09-2012, 04:04 PM   #4 (permalink)
Member
 
bziddy's Avatar
 
Join Date: Jan 2008
Location: San Diego, CA
Posts: 1,658
Default

Quote:
Originally Posted by paul06901 View Post
Also, can someone give me a quick explanation of how the interest works?

Say 4.9% on a total loan of $80,000 ... how is it applied daily?

Is that saying that if it's a 10-year term, Every year I'll be paying $3,920 (4.9% of 80,000) for those 10 years?
Very roughly, your daily interest accrual is the ($TOTAL_YOU_OWE x ((4.9%/365)), or about $10.80 per day.

I don't know how the income contingency plan works, but until you are making a payment over $300/mo towards your student loans, you will not be making any headway on the debt (in the scenario provided).

Are you currently working in a field that is appropriate for your degree, or will you be looking for different (hopefully better-paying) employment now?
__________________
They called me Mr. Glass.
bziddy is offline   Reply With Quote
Old 07-10-2012, 10:18 AM   #5 (permalink)
Member
 
paul06901's Avatar
 
Join Date: Aug 2009
Posts: 6,879
Default

Thanks for the clarification all!

bziddy: Yeah the contingency plan I believe just keeps me with low overally monthly payments, but I'm really not sure how it differs from deferrment? I believe I still am accruing interest either way? So I'm not really sure of the point of picking one over the other.


Is there any way, due to low income, to defer loan repayment without accruing interest?

It just seems like unless you are paying $500/month, you'll only be paying off interest and getting nowhere?

I know that's likely impossible, but in my current position, I can't afford $500/month payments. When I'm making double what my income is now (which should be soon), I can comfortably make those sort of payments.


Thanks for the info/advice so far! Very helpful!
paul06901 is offline   Reply With Quote
Old 07-10-2012, 11:17 AM   #6 (permalink)
Member
 
Join Date: Oct 2011
Posts: 2,863
Default

these loans are nuts i had the exact 4 loan structure on one of mine..they will put minimums payments towards all low interest loans first..read the story below..but depending on if they allow off principal or extend the payments as none due until xxxx date..but they will always pay the lowest interest rate off first no matter what you tell them..thus practically negatting the cash paid towards the smaller loans calling it a wash..pay as much as you can just to get out from under them...noone is better at getting new ways to get in your pocket then student loan companies..because they know 98% of all students NEEDS them.


personal story

i had the exact same setup..4 loans and all lol..they always put the minimum towards the highest interest rates first..so lets say your payment is 80 bucks a month and you send them 200 because you had a great cash flow month..well they will just push payments ahead..so your next month will be paid and the 3rd month will be partial payments..they NEVER just cut off the principal unless you specifically tell them to..my iowa student loan i owed 18900 to and change..i got a 6500 dollar bonus money i hadnt planned on having so i figured id just mail it all off to the loan..well needless to say instead of paying the minimum payment and then cutting the rest off the principal they took it and made single minimum payments all the way until 2021 lol..i didnt realize what they did until i got my next bill and it said amount due zero..next payment due october 2021..so i called and asked why they didnt just keep monthly bills the same and take off the rest what i owed..and the lady was super honest with me and said the state is greedy.i feel sorry for you kids getting taken advantage of lol..so basically when all was said and done i had to pay the interest on the loan all the way to 2025 even though i paid it off in 2010 15 years early ...then i had a parent loan where you could check a box on the payment that would deduct any extra off principal..so you just have to be super vigilant on these things
jerryw is offline   Reply With Quote
Old 07-10-2012, 11:20 AM   #7 (permalink)
Banned
 
Join Date: Mar 2011
Posts: 12,477
Default

Apply for amnesty?
Orangejello727 is offline   Reply With Quote
Old 07-10-2012, 01:01 PM   #8 (permalink)
Member
 
7290morint's Avatar
 
Join Date: Feb 2010
Location: Minneapolis, MN
Posts: 5,782
Default

I consolidated all of my loans directly after I graduated in 2005. I originally had my loans through M&I bank and I don't recall who else. I know make my payments through Nelnet, American Education Services (AES) & Firstmark Loan Services.

So I have 3 different loans that I am in repayment on. All of them have a 10 year payoff structure. When I was doing the consolidation I had either a 10 year or 15 year payoff option and obviously chose the 10 year (the payment amount each month was small roughly $10-$15 dollars). When I did consolidate, interest rates were super low and I was locked in at roughly 2.0 %, with one set dropping down to a final 1.8 % after 36 months of on time payments (which is impossible to not do after automatic with drawl). The one thing about consolidation is that you give up your 6 months grace period after you consolidate so you have to start making payments right away when you are done.

Obviously you have to do what's best for you in your financial situation, but student loan debts are one of the better debts that you can have. The interest rates cannot exceed (8.5 % I believe?) and it's an easy credit builder. There is also typically no penalty for early repayment. So while maybe now you have to do the longer repayment option, you can always pay more (unless they are automatic payments) on your loans which is what I do. I started out only making the required on all 3 and now I pay more than required on 2 of them since one is automatic. Hope this helps.
__________________
Looking for 2011 Topps Tribute Black Refractors #'d/10: 69/100 so far
7290morint is offline   Reply With Quote
Old 07-10-2012, 02:38 PM   #9 (permalink)
Member
 
Join Date: Oct 2011
Posts: 2,863
Default

sounds like you need to find a new place to live..even if it means back to the parents house for a year or 2 if thats an option..3/4 your monthly income on rent is living well beyond your means
jerryw is offline   Reply With Quote
Old 07-10-2012, 02:45 PM   #10 (permalink)
Member
 
Join Date: Aug 2008
Location: ny
Posts: 1,637
Default

With all due respect to the OP and other people that take out loans this big. WHY????
__________________
On Card Autos and Patch Cards
ricefan77 is offline   Reply With Quote
Old 07-10-2012, 02:52 PM   #11 (permalink)
Member
 
Join Date: Oct 2011
Posts: 2,863
Default

Quote:
Originally Posted by ricefan77 View Post
With all due respect to the OP and other people that take out loans this big. WHY????
because most are spoons arent silver..people are under the assumption (myself included back then lol) that college is a must to be successful..i cant speak for them but for myself it was worthless..i graduated with close to 50k in student loan debt(which was cheap as i went to a super ritzy school because i had decent grades and got some scholarship money) then i started my own business and didnt even use my college degree lol..i figured my job right oyut of college that i interened at offered me 26k a year starting with raises every year..i knew i could do better on my own and did...

most probelms with student loans are that students take out way more then what they actually needed..i know i had a 4 and 5k refund check every semester lol..and i worked lol..so id say part of my debt for school was used for beer lol
jerryw is offline   Reply With Quote
Old 07-10-2012, 04:07 PM   #12 (permalink)
Member
 
7290morint's Avatar
 
Join Date: Feb 2010
Location: Minneapolis, MN
Posts: 5,782
Default

Quote:
Originally Posted by ricefan77 View Post
With all due respect to the OP and other people that take out loans this big. WHY????
Due to the cost of higher education. I went to a small state school, had almost $10K saved up before I went and still needed over $30K in loans to cover everything (as when all was said & done after tuition & fees it was over $40K). I graduated in 4 years so it's not like I was screwing around either.

I taught at Colby College this past year where tuition & fees was $53,000 for 1 year. While there are plenty of students who go there that have parents who can pay sticker price there are plenty that do not. You can easily leave a place like that with $100K or more in debt. I will say this though, those students (even the mediocre ones) come out with a lot of opportunities. Even the mediocre students from that school get into very good graduate programs & professional schools.
__________________
Looking for 2011 Topps Tribute Black Refractors #'d/10: 69/100 so far

Last edited by 7290morint; 07-10-2012 at 04:16 PM.
7290morint is offline   Reply With Quote
Reply

Bookmarks

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -4. The time now is 04:23 AM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Search Engine Friendly URLs by vBSEO
Copyright © 2013, Blowout Cards Inc.