Hot answers tagged

35

As a new graduate, aside from the fact that you seem to have the extra $193/mo to pay more towards your loan, we don't know anything else. I wrote a lengthy article on this in response to a friend who had a loan, but was also pondering a home purchase in the future. Student Loans and Your First Mortgage discusses the math behind one's ability to put a ...


27

If the savings rate is the same as the loan rate, mathematically it doesn't make any difference whether you pay down the loan more and save less or vice versa. However, if the loan rate is higher than the savings rate it's better to pay it down as fast as possible. The chart below compares paying down the loan and saving equally (the gradual scenario), ...


26

If you pay extra now you will pay less in interest over the life of the loan. Unless your savings account has a higher interest rate than the loan's rate you are not saving anything. That being said, you may have a greater need for savings due to other things (e.g. you might need a emergency fund). But if you are only saving for the loan: compare the rates ...


13

"Open Enrollment" is the process in which a resident of one district attends school in another district. Ohio does have open enrollment. There are rules and procedures that need to be followed to take advantage of it. Ohio Department of Education has a web page on it: http://education.ohio.gov/Topics/Quality-School-Choice/Open-Enrollment First, you need ...


11

The bottom line is that you have a viable plan. I'd also account for raises and bonuses. You are winning by having a plan and a budget, you will be much more efficient that way. Also you may want to look at your withholding. The standard w-4 form typically leaves people with getting a large return, or owing a lot of money. Aim for a zero refund. There ...


8

Unless the loan provider is pretty darned directly attached to the course provider, the loan is an independent transaction. It isn't the bank's fault the other company went into receivership; it isn't reasonable to expect them to cover your loss. Your best bet is to either try to get some of your money back from the course provider (which may take years for ...


7

School districts are on the lookout for this. Families decide to live in a jurisdiction with lower taxes or better environment, but want their child to go to school in another district for academic or athletic reasons. You want one local government to believe you live in one place, but you want the school to believe you live in another. The home district ...


7

If it was me, I'd wait until/if you get contacted again by the collection agency. Once you do, I'd offer to settle for less. Perhaps 1000-1250 to start, and I would not go any higher than 2K. Get it in writing that this settles your debt in full, and do not give them direct access to your checking account. You can pay them by certified check or with a ...


6

I speak from a position of experience, My BS and MS are both in Comp Sci. I know very little about loans or finances. That is very unfortunate as you are obviously an intelligent human being. Perhaps this is a good time to pause your formal education and get educated in personal finance. To me, it is that important. I study computer science, and am ...


5

Your parents would file their taxes as they normally do. It would be as if your parents were landlords renting a room to your girlfriend. She would not be claimed on their taxes. If your girlfriend pays rent to your parents (through her parents or otherwise) it would be claimed as rental income. The household size wouldn't change because even though your ...


4

There are a few ways you can go about paying this off quickly (and safely): You could start paying $386 monthly (ie, double what you're paying now). You'll pay less interest in the long run because they can only charge you for the amount outstanding. Remember, 6.8% of $12k is more than 6.8% of $6k. However, your plan sounds more sensible. Say you get to $...


4

Should I use the money to pay off student loans and future grad expenses for me? Yes. The main drawback to student loans is that they cannot be gotten rid of except by paying them off (other than extreme circumstances such as death or complete disability). A mortgage, car loan, or other collateralized loans can be dealt with by selling the underlying ...


4

I stopped reading about 1/3 of the way in... let's simplify things Let's look at the net income for the property: rent $2,500 interest ($266) (85K * 3.75% / 12) prop mgr ($250) taxes/ins. ($500) (est.) Net $1,484 You are making about a 8% return on your original investment (210K), but only a 4% return on the current value of 475K. ...


4

A couple of additional options beyond the school's (possible) health care plan may be available to you in the event that your income will drop significantly when you become a student. First, you may be eligible for subsidies on the ACA exchanges. Check your state's exchange or healthcare.gov as appropriate to your location. Second, if your income as a ...


3

Fixed term or variable term for a student loan of 155,000 This is more opinion based. It is like predicting what would happen in future. From the current number; 10 year variable at 4.26% = $1,596.66/month If we go with assumption that variable rates will rise by 0.5% every 2 years; then it is still recommended to go with variable. If the rates ...


3

You're choosing between a variable rate and a fixed rate. As such, you are basically betting whether interest rates will rise or not. You're going to pay a good bit more with the fixed rate in the short term, in exchange for surety against interest rates rising significantly in the long term. The more you'll pay off early (and shorten the time in which ...


3

Without a full time job you are in an emergency. Hopefully it won't last long, but my opinion is to give the emergency fund priority while you just might need it soon.


3

While this may depend on the university/college type, health insurance is usually required for full-time students unless you can prove that you have other coverage. For instance, see this page from the Ohio State University. I would suspect that student health insurance will not be as good as many company-provided plans but may be cheaper since the ...


2

Your priorities should be: Pay the minimum on the loan to prevent it from going into default. Build an emergency fund. Pay extra on the loan to reduce the debt. If you end up with additional debt from, say, credit cards, you should probably try to get rid of that first, as it's almost certainly at a higher interest rate than a subsidized student loan. ...


2

The interest accrues daily based on the amount you owe. The less you owe the less the daily interest accrual. The faster you pay it off the less you pay in the lifetime of the loan. You are losing money if you bank money rather than applying it to the loan immediately. Since student loans cannot be declared in bankruptcy and interest rates cannot be ...


2

Your parents would not be able to claim her as a dependent as multiple people are not allowed to claim a single person as a dependent. Utilize the IRS website to show who you are and are not allowed to claim (https://www.irs.gov/uac/Who-Can-I-Claim-as-a-Dependent%3F).


2

I copied Pete's data and re-sorted to show by interest rate. What stands out to me is that the balance at 6.8% ($16,700) is nearly as high as the 3.4-3.9% balance ($17,491) yet costing nearly twice the interest. If we call the difference 3% to keep the math simple, the high rate chunk costs you $500/yr more than the low rate chunk. I'm sympathetic to ...


2

I think your plan sounds entirely reasonable and like a very good idea. In particular, signing up for the longer 25-year payoff plan with the understanding that you will make higher payments and therefore pay things off more quickly sounds like a great idea because, as you say, it leaves you with the flexibility to drop payments to only $320 per month if/as ...


2

As someone in the very same position as you here is what I suggest: Have $1,000 for each possible large expense you currently have. For example, house, car, pregnant wife, etc. As someone who only has a car (living at home still) I only have $1,000 in my eFund (emergency fund). The ABSOLUTE rest of my money goes to paying off the loans as soon as possible. ...


2

It is not new. Form 1098-T is a form that schools/universities send out to their students to report the amount of tuition paid. It is used to qualify for tax benefits for education. Like many tax documents that you receive from other companies, you may have to wait until February before you receive it. If you haven’t received it by the middle of February,...


1

My general "rule of thumb" is that if the debt money costs you more than your savings make, then you should pay it off. In nearly every case debt is more expensive than the tiny amounts you can get in savings interest, so in almost all cases, pay off debts whenever you can. In the UK, when student loans were first introduced the interest rate was ...


1

It's possible, in general. However, it isn't uncommon for these grants to be need-based, so that even if you're accepted for several the total grant amount may not increase as much as you might expect.


1

I am not aware of any place that the tax forms ask, "How many people live in your house?" They ask how many dependants you have, and not everyone who lives in your house is your dependant. There are very specific rules about that. If your girlfriend is being claimed as a dependent on her parents' tax return, then she cannot also be claimed on anyone else's ...


1

Find an employer that offers tuition reimbursement as an employment benefit. Go to grad school part-time and let your employer pay for it. While working, you can also pay down your personal debt.


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