Anonymous
Post 07/24/2018 10:28     Subject: Anyone is ok carrying a student loan debt?
Yeah I'm fine with carrying my student debt. All things being equal, of course I'd prefer to not have it, but I'd rather put my money elsewhere. I have about $50k remaining in student loans all at 3.5% interest. The payment is something like $400/mo. About 10 years out of law school, I don't even notice it anymore. Meanwhile I've funneled lots of money into my brokerage account over the course of those 10 years and I am building wealth rather than fretting about debt.
Anonymous
Post 07/24/2018 10:15     Subject: Anyone is ok carrying a student loan debt?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Why do you care what other people are doing? I never had student loan debt, no way would I take it out in the first place. However what does that have to do with you? Nothing.


Many have absolutely not choice but to get loans. OP is asking about the best way to manage it along with other financial goals.


Yes and for some people, getting a loan is absolutly not a choice they would make no matter what. So what?


And that's not what this thread is about. It's about managing the loans SOMEONE ALREADY HAS. Go start your own thread if you want to trash student loans.

OP, the interest rate on my loan is 5.75. DH and I are paying it down aggressively. Started at about 150K in 2002, but only paid the minimum until about 3 years ago. Then we started throwing all our extra money at it. We are now at about 35K and the end is in sight. Never had a problem getting approved for a morgatge or HELOC, car loan or credit card. We always managed to save for retirement as well. But when I think about how much better shape we'd be in now if I had tackled the loans sooner, I cringe. Tons of interest payments down the drain.

That being said, I would have been a lot more lax about paying them off if the interest rate was lower. But 5.75? I should have refinanced, but never did. Ah well. Live and learn.


No, the OP is feeling insecure after watching a YouTube video and is now looking for validation. If she wanted real suggestions, rather than the calming hum of the chorus from the peanut gallery on her unique situation she would have posted useful details.

I'm not trashing loans. My situation had no bearing on your or anyone else. My lack of loans is not a reflection on yours.
Anonymous
Post 07/24/2018 09:33     Subject: Anyone is ok carrying a student loan debt?
Depends. My student loans have 2-3 percent interest rates. Not something I'm worried about paying down aggressively. If they had higher interest rates? It would absolutely be more of a priority.

Also, I would never stop contributing to a 401K--in addition to the tax benefit, many employers match up to a certain percentage, and not contributing is throwing away free money.
Anonymous
Post 07/24/2018 09:00     Subject: Anyone is ok carrying a student loan debt?
Plus loans are now 7 percent
Anonymous
Post 07/24/2018 08:32     Subject: Anyone is ok carrying a student loan debt?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Why do you care what other people are doing? I never had student loan debt, no way would I take it out in the first place. However what does that have to do with you? Nothing.


Many have absolutely not choice but to get loans. OP is asking about the best way to manage it along with other financial goals.


Yes and for some people, getting a loan is absolutly not a choice they would make no matter what. So what?


And that's not what this thread is about. It's about managing the loans SOMEONE ALREADY HAS. Go start your own thread if you want to trash student loans.

OP, the interest rate on my loan is 5.75. DH and I are paying it down aggressively. Started at about 150K in 2002, but only paid the minimum until about 3 years ago. Then we started throwing all our extra money at it. We are now at about 35K and the end is in sight. Never had a problem getting approved for a morgatge or HELOC, car loan or credit card. We always managed to save for retirement as well. But when I think about how much better shape we'd be in now if I had tackled the loans sooner, I cringe. Tons of interest payments down the drain.

That being said, I would have been a lot more lax about paying them off if the interest rate was lower. But 5.75? I should have refinanced, but never did. Ah well. Live and learn.
Anonymous
Post 07/24/2018 08:07     Subject: Anyone is ok carrying a student loan debt?
I think it depends on how much student loan debt vs. how much you can reasonably expect to earn, options for paying it back, etc. So, $150K of debt for an MD is a lot, but it's also feasible that someone could pay it back vs. $80K for an M.A. with less lucrative job options. Federal vs. private loans matters, too.

Income-based loan repayment programs for federal loans can make the monthly payments fairly reasonable. But then, loan debt (and time in graduate school) can make it hard to save for a down payment, which affects house-buying capacity.

Overall, context matters. Saying all student loan debt is baaaad is a pretty extreme position, but it's useful to be informed about the options.
Anonymous
Post 07/24/2018 07:57     Subject: Anyone is ok carrying a student loan debt?
I have student loans and a mortgage and am not aggressively paying them down. I was okay with it for a while, but now that I hate my job and want to quit, I wish I had paid them off sooner. I’m basically stuck until they are paid off or forgiven.
Anonymous
Post 07/24/2018 05:01     Subject: Anyone is ok carrying a student loan debt?
Anonymous wrote:
Anonymous wrote:Why do you care what other people are doing? I never had student loan debt, no way would I take it out in the first place. However what does that have to do with you? Nothing.


Many have absolutely not choice but to get loans. OP is asking about the best way to manage it along with other financial goals.


Yes and for some people, getting a loan is absolutly not a choice they would make no matter what. So what?
Anonymous
Post 07/24/2018 00:29     Subject: Anyone is ok carrying a student loan debt?
Anonymous wrote:Why do you care what other people are doing? I never had student loan debt, no way would I take it out in the first place. However what does that have to do with you? Nothing.


Many have absolutely not choice but to get loans. OP is asking about the best way to manage it along with other financial goals.
Anonymous
Post 07/23/2018 23:09     Subject: Re:Anyone is ok carrying a student loan debt?
I disagree with Dave Ramsey and my debt free friends: I think responsible debt is good. That said, people should do what makes them comfortable.

I have a student loan and a mortgage, both with low fixed rates. I put almost all purchases on my credit card and pay in full each month. Works for me.
Anonymous
Post 07/23/2018 21:41     Subject: Anyone is ok carrying a student loan debt?
Why do you care what other people are doing? I never had student loan debt, no way would I take it out in the first place. However what does that have to do with you? Nothing.
Anonymous
Post 07/23/2018 19:28     Subject: Anyone is ok carrying a student loan debt?
I was able to keep my law school debt manageable. Under $40,000, which at the time was the cost of a luxury car. I was able to pay it off in less than 10 years. They were 20 year loans, and the interest rates were low. During that time, I invested in retirement as well. Maybe not as much as I could have. But I still did it. I also purchased a house. A very modest house. That house appreciated more than $100,000 so I had a nice amount to put down on a bigger house later. If I had waited to buy it, I wouldn't have had that opportunity.

If school debt is astronomical, it will have a serious impact on your life. And that amount is different for everyone. I have a friend who had $260,000 in debt. In those circumstances, I would pay off as much as I could, as fast as I could.

If you are comfortable with things as they are, I wouldn't worry too much about it.
Anonymous
Post 07/23/2018 19:07     Subject: Anyone is ok carrying a student loan debt?
I don't have any student loan debt but my DH (40) still has about $50K. We're fine with it. The monthly payments are low and we save a ton on top of it, even if our HHI is only about 200K. Our credit ratings are both 820+, and we are making good progress toward savings.
Anonymous
Post 07/23/2018 19:04     Subject: Anyone is ok carrying a student loan debt?
Big thread on Dave Ramsey here:
http://www.dcurbanmom.com/jforum/posts/list/736771.page

Short answer is that this method isn’t for everyone, but has definitely helped some people.

We didn’t finally pay off my husband’s student loan debt until our mid-40s, after we had bought six houses and only sold two. But the interest rate on it was crazy low.
Anonymous
Post 07/23/2018 18:58     Subject: Anyone is ok carrying a student loan debt?
I just watched Dave Ramsey show and it looks like he is really against any debt including the student loan debt. Does anyone else think it's ok to carry student loan debt and do 401k investments, buying a house etc? We own a house and do 401k contributions and travel, and student loan payments don't seem to bother us, but the show made me think that maybe we are doing it wrong.
Thank you in advance for any input.