122 votes
Accepted

Why is my student loan balance not going down?

While it's common to think of it that way - pay off the interest first, then the principal - that's not actually how your payments work over time. It's true of any one payment, though. Interest is ...
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  • 34.7k
94 votes
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How can I prepare for my US student debt?

But what should I be expecting? How much trouble am I in? If you graduated with $134,181 in loans at a rate of 9.3% you'd expect a repayment amount of $1,722/month for 10 years. If you make $70,000/...
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  • 63.9k
87 votes
Accepted

Multiple loans, multiple payers - how to snowball fairly

First off, your commitment to paying down debt and apparent strong relationship with your brother is admirable. However, I think you are overcomplicating your situation and potentially endangering ...
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79 votes

How can I prepare for my US student debt?

IMHO, you made a very poor choice with school selection. When we make poor choices as adults we have to write checks to solve those problems. Yours is one that will cost you well over 140K, and ...
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  • 74.9k
75 votes
Accepted

What are the biggest pitfalls to avoid with student loans?

(This answer is based on the article you linked in the comment, but could probably apply in general as well) What re-payment detail are people overlooking? There are not many specifics in the ...
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  • 114k
68 votes
Accepted

Using fiancée's money to pay off my student debt

Congratulations on your engagement, and on your desire to begin your marriage debt free. Your fiancée can give you up to $14,000 per year as a gift without having to pay any gift tax. Above that, ...
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62 votes
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How can a high school student value a possible degree?

college is valuable even if we don't get a high income Absolutely! Any education is valuable in some way. Not all are valuable economically, though. A degree in sociology that enables you to work in ...
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  • 114k
61 votes

How can I prepare for my US student debt?

You've been tricked into an inappropriate lifestyle And the student loan companies did it. Their motivation is the positively insane interest rates for loans which cannot be discharged in ...
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53 votes
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Should I pay down my student debt early?

In the UK, supposing that this student debt is the government backed type debt and not private debt, then it will never be reported on your credit report and will not affect your chances of getting ...
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  • 8,492
52 votes

Would it make sense to take a loan from a relative to pay off student loans?

Personally, I avoid making business deals with friends and relatives. There's just too much of a possibility that things can go wrong. Let's assume that you're honest people and you have no ...
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  • 20.8k
52 votes
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Debt management: 0% CC APR for 15 months vs 7% student loan debt

Paying 0% on $400 instead of 7% saves you ~$2.33 each month. You'd still have to make minimum payments each month on the credit card, so you can't put all of that $400 toward the student loans anyway. ...
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  • 63.9k
51 votes
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Ask mother to pay off entire student loan, then pay her?

In the US, the main tax consequences are: The interest she receives will be income and have to be declared as such The interest you pay would no longer be deductible since loans from relatives are ...
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  • 114k
51 votes

Pay everything now or gradually?

To put this into perspective, you are paying ~$1500 interest annually (gradually decreasing), or $132 monthly. All the while, you have money sitting in your bank account doing seemingly nothing. ...
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  • 3,064
51 votes
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Taking college classes to avoid student loan payments indefinitely

You mentioned that this is a private student loan, not a federal loan. There are no standard terms for private loans like there are for federal loans. To find out the deferral rules, you would need to ...
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49 votes

Should I pay down my student debt early?

For most people the answer is a strong No, you should not pay more than the minimum repayments. UK student loans are a special type of debt with two big differences to a normal loan: You are not ...
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  • 1,464
49 votes
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UK Student Loan Repayments

The UK Student Loan system is best thought of not as a loan, but as a tax on future earnings. You are correct, the majority of people will never clear their debt, a substantial portion won't even ...
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48 votes

3.5% Interest Student Loan or use all of my savings on Tuition?

According to the OSAP website you will not be charged interest until 6 months after you graduate for the Ontario portion of your loans (Canada portion accrues interest immediately after graduation). ...
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  • 63.9k
48 votes

Will the Government come after my daughter's assets if I can't pay my student loans?

Short answer: No Your daughter is not liable for the student loan debt unless she co-signed for it. Also, she can not inherit the debt, but the government CAN make a claim on your estate and take it ...
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  • 51.3k
46 votes
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Put my student loan in parents’ second mortgage - help?

The student loans are gone, all lenders see is a 2nd mortgage. Since the mortgage is secured by the home you'd likely have a hard time getting a better rate on an unsecured loan, but it doesn't hurt ...
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  • 63.9k
44 votes

Student loan payments and opportunity costs

My recommendation would be to pay off your student loan debt as soon as possible. You mention that the difference between your student loan and the historical, long-term return on the stock market is ...
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43 votes
Accepted

How much of my income should I put towards paying off student loans vs saving for a house?

In my opinion, you should pay off the student loans as soon as possible, before you start saving for the house downpayment. $26k is a big number, but you have a great salary. (Nice!) Up until now, ...
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42 votes

Does borrowing from my 401(k) make sense in my specific circumstance?

The set of circumstances that 401k loans make sense, are very small. As you would expect yours is not one of them. You make 70K per year and need 6500. Interest rate is not your problem, ...
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  • 74.9k
41 votes

When paying for college, should I take out (interest-free) loans and pay them off with saved money, or use the saved money directly?

Here are the risks involved with student loans: They are very difficult to get discharged in a bankruptcy - the only way you can get rid of them is through death or disability (there are forgiveness ...
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  • 114k
40 votes
Accepted

Student loan payments and opportunity costs

Ponder this. Suppose that a reputable company or government were to come out and say hey, we are going to issue some 10 year bonds at 6.4%. Anyone interested in buying some? Assume that the company or ...
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  • 1,116
40 votes

What are the biggest pitfalls to avoid with student loans?

Attend a less expensive school The biggest pitfall to avoid is attending a school at you cannot afford. If you can get a need-based scholarship to Harvard, by all means attend an expensive university,...
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39 votes

Is it illegal for a student loan servicer to lower the minimum monthly payment after overpayments?

No, I don’t believe this is illegal. I think you’ve already highlighted the reasons this is done: As a service to the borrower, it allows them to lower their payment if they choose. If the borrower ...
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36 votes
Accepted

Would it make sense to take a loan from a relative to pay off student loans?

My biggest concern with this plan is that there's no going back should you decide that it is not going to work, either due to the strain on the relationship or for some other reason. If you were ...
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  • 114k
36 votes

Taking college classes to avoid student loan payments indefinitely

Money interactions/discussions often draw a lot of emotions out of people and this is often complicated by in-law relationships. The best advice one can give you is to stay out of this conversation. ...
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  • 74.9k
35 votes

What happens if I just don't pay my student loans?

Same thing as for any debt: bank sues you, you lose, you are in an even deeper hole because you now owe them for the cost of the court case, your credit rating goes into the toilet, you may even have ...
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  • 31.8k
34 votes
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Received federal student loan collection letter, but never had one. What to do?

You've already done everything I would suggest: Contact the collections agency, being careful in what personal information you provide. Check all three of your credit reports, for any trace of ...
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