How fast is too fast? Repaying Student Loans

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[Post New]04/09/2011 10:50
Anonymous
I had (have) almost 50,000 in loans between undergrad and grad school. If I could pay it off overnight I would. I did get some scholarships and grants, and I paid some out of pocket by working part or full time, but had to depend on loans for the rest.

6.8 does seem high. If you can pay it off without risking financial trouble, do it. You can use the credit card payments and car payments to help build credit.

Also, you may think you're money conscious, but make sure that nothing can come back and kick you in the butt. Money has the tendency to do that.

As for the "parents" discussion - parents often attend college or are coming out of college and starting a family at the same time. Or, they could be a nanny or some other poster. This forum isn't used by only parents.
[Post New]04/09/2011 10:56
Anonymous
just clarifying your credit card usage - are you actually carrying a balance month to month on your credit cards? It sounds like you are making regular payments but not actually paying it in full? If so that should absolutely be your first priority - it's much more expensive money and a bad habit. The $3000 loan is pretty modest, has a reasonable rate, and regular payment plan. Once you get the credit cards paid off you can pay off the loan.
[Post New]04/09/2011 12:04
Anonymous
OP here-

I buy everything on my AMEX, let the bill come, pay it off. Repeat monthly. I don't ever have interest accruing on anything I put on my cards.

Since you are all so nosy, I've been married 4 years, getting ready to start working on baby #1, I pay my Aunt and Uncle $1000 a month for rent so it's not just given to me, and just because my grandfather sat on his money till he died does not mean my family necessarily has money. My parents are very comfortable but would never give out money to us. We believe in working for what we have. I worked full time through school and haven't received any financial aid from my parents since I was 18.
[Post New]04/09/2011 12:07
Anonymous
Anonymous wrote:
My main goal right now is to buy a new car after the loan is paid off, but to make a 25% downpayment on it. My parents were HORRIBLE at money when I was little, so they really tried to make me and my siblings money conscience. Apparently it made me a money freak



If you are really a "money freak," you'd pay cash for the car...

Seriously, I think it is great you've avoided most debt- $157k for a college degree would have been a catastrophe. You're obviously proud that your family helped you out. Why not keep up the avoidance of debt by avoiding car debt?
[Post New]08/12/2011 02:08
Adam
Member Offline
I have seen many students were confusing about how to get their students loan fast. You can easily visit your college financial officer. Most colleges have their own loan providers they deal with, so chances are good that this will be a reputable company or you can come up to your own private bank. Complete the loan application form and submit it together with your student recognition card. Please note that your student identification card needs to be valid for current semester which you are registered for.
[Post New]08/12/2011 08:09
Anonymous
Anonymous wrote:OP here-

I buy everything on my AMEX, let the bill come, pay it off. Repeat monthly. I don't ever have interest accruing on anything I put on my cards.

Since you are all so nosy, I've been married 4 years, getting ready to start working on baby #1, I pay my Aunt and Uncle $1000 a month for rent so it's not just given to me, and just because my grandfather sat on his money till he died does not mean my family necessarily has money. My parents are very comfortable but would never give out money to us. We believe in working for what we have. I worked full time through school and haven't received any financial aid from my parents since I was 18.


Yes, it's a regular rag to riches story. Didn't all the characters in Horatio Alger's stories start out with a six-figure inheritance they could use to fund their educations?
[Post New]08/12/2011 08:10
Anonymous
Anonymous wrote:
Anonymous wrote:OP here-

I buy everything on my AMEX, let the bill come, pay it off. Repeat monthly. I don't ever have interest accruing on anything I put on my cards.

Since you are all so nosy, I've been married 4 years, getting ready to start working on baby #1, I pay my Aunt and Uncle $1000 a month for rent so it's not just given to me, and just because my grandfather sat on his money till he died does not mean my family necessarily has money. My parents are very comfortable but would never give out money to us. We believe in working for what we have. I worked full time through school and haven't received any financial aid from my parents since I was 18.


Yes, it's a regular rag to riches story. Didn't all the characters in Horatio Alger's stories start out with a six-figure inheritance they could use to fund their educations?


Sorry, forgot to mention the subsidized housing. That's always a component of the self-made woman.
[Post New]08/12/2011 08:21
Anonymous
Just pay it off. We graduated in 99, I graduated from grad school in 01, and we bought our first house in 02. Sold it in 05 for massive profit. Paid off all student loans and then still had left over for a down payment on a new place.

I dont' get why you wouldn't just pay it?
[Post New]08/12/2011 08:37
Anonymous
Anonymous wrote:Just pay it off. We graduated in 99, I graduated from grad school in 01, and we bought our first house in 02. Sold it in 05 for massive profit. Paid off all student loans and then still had left over for a down payment on a new place.

I dont' get why you wouldn't just pay it?


Because this isn't 2002, when banks gave mortgages to anyone with a heartbeat. I bought in that era, too. When I was listing our assets on the application, I remember the loan officer saying, "don't worry about filling all that out." He also told us we were "under borrowing." OP wants to build a credit history, which some pp's above have noted, can be an issue when applying for a mortgage. DH and I just went through the mortgage application process, and even with a 35% down payment, an income well into six figures, and seven figure savings, was like the Spanish Inquisition. OP is being cautious, but wise.
[Post New]08/12/2011 08:42
Anonymous
8:37 here -- and I meant to add, we also had a credit score over 800 and an excellent payment history with the same bank.
[Post New]08/12/2011 08:57
Anonymous
Since you guys resurrected this thread, I'll let you know that I paid off my loans in June and bout a new car 2 weeks ago. I had to put more down on the car because I didn't make enough payments on my prior installment loan (student loan). Not a big deal in terms of the car, but if I had jumped straight to a house I wouldn't gave gotten approved for as much as I'd like.
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