Paid. Off.:-)xraymd===========================I bow before your greatnessb
Congrats! Out of curiousity, how long did it take for you to do it?
Paid. Off.Pay. Mine. Too. Please?-A
Congrats, Xraymd! (Or maybe I should say "Omedetou" since I am hanging out in Japan.)I know how much of a pain the a$$ those were for you.
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.xraymd
(Or maybe I should say "Omedetou" since I am hanging out in Japan.)Greetings, W505a, Japan, eh? Now therein must lie a story which I hope you will tell...Anyway, special thanks and a special shout-out to you who really provided major moral support and an astonishing wealth of practical information about the workings of student loans that allowed me to orchestrate this payoff as liltingly as I did. Your prior posts still serve as a treasure trove of totally helpful information. Thanks for coming back to wish me well. I, in turn, wish you well over there. Domo arigato!xraymd
I admire the deft way you went about using Zero Balance transfers. And particularly, the willingness to take such a risk---since what would have happened if, for some reason, you were laid off during that time?I congratulate you again, so the following is a bit of a tease.If you've still got a $30,000 Zero Balance transfer out there, isn't it more appropriate to say that: while you may no longer have a bona fide "student loan", you still do have student loan debt?
If you've still got a $30,000 Zero Balance transfer out there, isn't it more appropriate to say that: while you may no longer have a bona fide "student loan", you still do have student loan debt?Greetings, W505a, indeed I do consider that I have a form of student loan debt yet BUT I no longer owe it to Direct Loans! And what I am doing over the next year is saving like crazy to be able to pay of that $30K before a penny of interest is generated on it. I am banking the bulk of those savings to EARN interest while paying a smidge above the minimum each cycle to the credit card balance. Then, all at once next May, I am going to slam down the entire elephantine balance remaining on the card at once, bringing it to a zero balance with dizzying speed and THAT will be the true denouement. The great fun here is that over the next year I will actually be EARNING interest on the balance that I would otherwise have had to PAY interest on.What lets me sleep at night over this are two facts: 1) I have disability insurance in case of a catastrophe, which is designed to replace the bulk of my income should there be a disruption, heaven forfend. And 2) I am willing to pull that $30K out of my retirement savings if I must, since I have had a Roth for over 5 years with my own contributions sufficient to tap if it came to that.But say it won't (I've done this twice before, once with swatting down $30K onto the student loan a couple of years ago and another time last year to cover the downpayment on my house which was then paid off over the ensuing 12 months - not the mortgage, just the downpayment!). If all goes according to plan, then next June I will be left with only my mortgage as debt and am researching whether I want to accelerate payments on it, or to boost savings instead. This falls in the category of a good problem to have!xraymd
I just wish you a lot of luck with it.Sometimes I wonder whether it makes more sense just to write a check and get rid of my own one. But inevitably, I conclude that there are better uses for the money in other investments.(And some of these are up triple from what they were two and a half years ago.)If I had given over the money to Direct Loans, I wouldn't have what I have today. So I consider this a lot.Student loans are truly an evil burden foisted upon unsuspecting young people.I would like to see them eliminated by the government, and an apology issued to those who had to take them out in the first place.
"Student loans are truly an evil burden foisted upon unsuspecting young people.I would like to see them eliminated by the government, and an apology issued to those who had to take them out in the first place."Not to disagree too strongly, but I think student loans are a great program, which help students get an education and also be personally responsible for it. I would be in favor of more programs of student loan forgiveness, such that some of the limited programs in teaching and medicine were greatly expanded, especially into areas the U.S. isn't as competitve. I would also favor some form of forgiveness based on contribution to society (i.e. maintainint a job). Student loans have held me accountable for the classes (semesters??) I goofed off. But they have also allowed me to get graduate degrees.Danbobtx
Not to disagree too strongly, but I think student loans are a great program, which help students get an education and also be personally responsible for it.yeah, there's a yes and no, I feel.You are right about the potential "goof off" factor, if you make everyone eligible for grants. But the way around it is, you only give grants for so many semesters. Someone screws up too many times, then they run out of grant money.No one ever points out, that the loan programs merely allowed the schools to tack the same amount onto tuition. The government said, "hey, here's $2000 to borrow for school!". And within a few years, colleges had figured out a way to charge $2,000 more.So I wonder if it really opens doors like people say. (Except the doors of the college president's Lexus or the Jag of some big shot at Sallie Mae.)You are also right, that there should be some service-factor built into amortizing the loan. Say, if you want a certain amount of loan forgiveness, then join a certain community program on the weekend, or be a lawyer for the poor.The problem, however, is that the unions and the law firms scream bloody murder about proposals like that.If people pay "as a percentage of income", what's the difference between that and the ordinary taxes they pay. I've already paid to the federal government enough money to eliminate the student loan. (I live in the county with the highest median wage in the United States - Somerset County, New Jersey.) Why do I have to borrow my (and my family's) tax money back at interest, when other parts of the country get a lot of federal programs for free? (See my posts from 2000-2001 about this.)This is why I believe the Democrats best strategy this summer would have been to say, "let's scrap the program or turn it into grants."Or: sure, let's have the program, but you write the entire payment off on your federal taxes.They basically made a big fight about fixed-or-variable consolidation loans. And the Republicans did an end-run around them by offering the consolidator the alternative of FIXED or VARIABLE (where you pay a premium for the fixed rate.)The real issue is why even have them? They're just a flood of cash to college budgets, with the student as a hose.(Student gets hosed maybe is more like it . . .)
Xraymd-Thanks for the inspiration! I have been chugging along making standard payments on my student loans ($42K consolidated at 7.2% - scheduled to be paid off in 2011) and maxing out my 403(b) which does not have a match. Since I'm unable to deduct the student loan interest due to income limits, a risk free/tax free 7.2% return is looking really good. I'm not sure I can match that return in my 403(b).Today, I reduced my 403(b) contribution and will be putting the extra money towards my student loan. If my calculations are correct, I should have it paid off in about 18 months. After about 6-8 months, I will be able to transfer the whole balance to a my (currently unused) HELOC if interest rates remain low.-Adenovir(posted & emailed)
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