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Personal Finances / Paying Back Student Loans


Subject:  Re: My two words for today re: student loans Date:  8/3/2005  10:25 PM
Author:  xraymd Number:  3907 of 4855

Congrats! Out of curiousity, how long did it take for you to do it?

Greetings, blungold, thanks for your (and everyone else's) congratulations! Student loans were taken out from 1994 to 1998 and I began deferment in 1998, reconsolidation in 1999 and again in 2001 and finally repayment in earnest in 2002. Don't be fooled, though; I may have indeed achieved a $0 balance (actually a -$0.01 balance) on my student loans as of 8/1/05 BUT this is largely because I transferred the last $30K over to a 0% balance transfer offer with no transfer fee, which will actually take until June 2006 to finally fully retire.

That's the thing, though. To achieve payoff at this speed of the high-water mark of $90,062.06 of principal plus the accrued $11,250.07 in interest required that I employ parlor tricks such as moving hunks of principal to 0% loans to defray accumulating interest (especially since I consolidated when loan rates were high yet threatening to rise higher). I also started earning an ample salary which allowed me to kick butt at repayment whether to the Direct Loans itself or to the credit card balances representing the transferred portion of the student loans. Even without an ample salary, though, I would have hewn tightly to minimal expenses and maximal repayment because I hated student loans with the fire of 10,000 suns and wanted them dead. So now as far as Direct Loans is concerned, they are! It isn't so hard paying back Universal Card because the amount I owe to THEM is no longer racking up interest. But the bottom line answer is that from the first disbursement in August of 1994 to the last online payment in August of 2005 was an eleven-year indentured servitude from which I am now gratefully released.

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