General Discussion

Glassunion

(10,201 posts)

32. What I outlined, she will not need to live with you for 10 years.

Fri Dec 13, 2013, 03:35 PM

Dec 2013

In what I outlined it would take her 3 years and 1 month to completely pay off the loan. July of 2017.

Based on what you stated her payment ($350) was, and that her loan amount is 30K, I am assuming that her APR on the loan is 7%'ish.

If she stays with you for X, and pays $800 each month on the loan while she is living with you, it will look like the following if she then decides to move out and then pay the minimum due.

6 Months, new monthly payment is $315
1 Year, new monthly payment is $278
1.5 Years, new monthly payment is $237
2 Years, new monthly payment $190
2.5 Years,new monthly payment $137
3 Years, new monthly payment $77

Also, she can save on even more interest by paying smaller amounts per month. So instead of paying $800 when it's due, she can pay $200 a week instead and that will also whittle away at not being charged the full monthly portion of the APR.

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So my daughter starts paying her student loan in January [View all] B2G Dec 2013 OP

the system is designed to help people fail FatBuddy Dec 2013 #1

She's freaking out B2G Dec 2013 #2

they have an income contingent repayment option FatBuddy Dec 2013 #4

We'll definitely look into that B2G Dec 2013 #7

Careful... KansDem Dec 2013 #19

I understand that B2G Dec 2013 #23

This repayment tactic was discussed over at Naked Capitalism. truedelphi Dec 2013 #27

I'm on an ICR plan FatBuddy Dec 2013 #41

Do you still have the phone number you called truedelphi Dec 2013 #44

i did this back during the dubya administration FatBuddy Dec 2013 #46

A big Thank You! n/t truedelphi Dec 2013 #50

You are correct. She may not be able to move out. Glassunion Dec 2013 #5

She can't/won't live here for 10 years B2G Dec 2013 #9

If you don't mind me asking Glassunion Dec 2013 #13

30K. Degree in Communications nt B2G Dec 2013 #16

What I outlined, she will not need to live with you for 10 years. Glassunion Dec 2013 #32

My DH tried to do that with Sallie Mae after he graduated. He was extremely lucky and got in through Hestia Dec 2013 #62

According to current law, there can be no early payment penalty on Federally backed student loans. Glassunion Dec 2013 #68

Wouldn't it also depend on her daily APR? Aren't school loans now like mortgages? Hestia Dec 2013 #63

I used a daily APR calculator. Glassunion Dec 2013 #65

A degree in Communications is valuable if you have a strategy. truedelphi Dec 2013 #33

Thanks for the hot tip B2G Dec 2013 #35

And they do give you jobs to do, truedelphi Dec 2013 #40

If the loan is 30k, then you can seriously lower the payment by ammortizing taught_me_patience Dec 2013 #34

That's an excellent point B2G Dec 2013 #37

If she's in business, her salary with move up fast taught_me_patience Dec 2013 #39

Thanks...she was thrilled. B2G Dec 2013 #56

Yr post is genius. Can you tell me who you talk to to do that? truedelphi Dec 2013 #43

studentloans.gov taught_me_patience Dec 2013 #45

How much does she owe? pnwmom Dec 2013 #55

That's a little melodramatic I think..... llmart Dec 2013 #73

Roommate(s). And a used car. LondonReign2 Dec 2013 #17

She has a 1999 car but will be considering a roommate now for sure nt B2G Dec 2013 #18

Are these federal loans or private? enlightenment Dec 2013 #20

They are federal loans...Sallie Mae B2G Dec 2013 #30

Just a comment - enlightenment Dec 2013 #49

As a parent, I would tell her to continue living with me pnwmom Dec 2013 #54

Not suppose to..... daleanime Dec 2013 #3

mine was $1000 per month right out of school... mike_c Dec 2013 #6

Insanity. nt B2G Dec 2013 #8

Suck it up... ScreamingMeemie Dec 2013 #10

Thank god she has employer healthcare B2G Dec 2013 #12

Who cares? We have more billionaires than any other nation! Egalitarian Thug Dec 2013 #11

What bothers me the most is that SheilaT Dec 2013 #14

She was well aware it would need to be repayed B2G Dec 2013 #15

I don't think that is so at all in most cases. ScreamingMeemie Dec 2013 #21

^^^this B2G Dec 2013 #26

You are nailing it, Sceaming Meemie. n/t truedelphi Dec 2013 #38

nobody forces any one to attend college or even have to borrow to do so beachbum bob Dec 2013 #61

And what you are talking about doesn't appear to be what is happening here. ScreamingMeemie Dec 2013 #77

rude? Countless threads on student loans beachbum bob Dec 2013 #85

Nowhere did the OP state that her daughter didn't intend to repay her loan. ScreamingMeemie Dec 2013 #86

Of course she's going to repay the loan B2G Dec 2013 #88

+1. lightcameron Dec 2013 #91

I was paying $462/mo when I got out Capt. Obvious Dec 2013 #22

Your DU name is most appropriate. B2G Dec 2013 #25

You're also entitled to at least 24months of forberance ... Rosco T. Dec 2013 #24

Well yes and NO! Forbearance is easy to get, but the clock is ticking on that loan. truedelphi Dec 2013 #36

That's not that bad Yo_Mama Dec 2013 #28

Its doable. She spent too much for a 30K starting salary, but she can get out of the hole. aikoaiko Dec 2013 #29

Many starting salaries are 30 K these days. peace13 Dec 2013 #51

She 'spent too much'? B2G Dec 2013 #64

It adds up quickly. peace13 Dec 2013 #81

True, $30K for 4 years of tuition isn't bad. aikoaiko Dec 2013 #82

Did she qualify for grant money? MoonchildCA Dec 2013 #83

What is her balance, ammortization, and interest (I assume 6.9%) taught_me_patience Dec 2013 #31

Here B2G Dec 2013 #42

She could probably consolidate, stretch it, and lower the payments aikoaiko Dec 2013 #47

I think you've got it backwards-interest rate is lower on the *subsidized* Stafford loans kath Dec 2013 #52

Message auto-removed Name removed Dec 2013 #66

The small one is do-able.. she may need to get a night job and devote all the income SoCalDem Dec 2013 #70

Did they mislead her when she borrowed the money? n-t Logical Dec 2013 #48

A bit off topic, but important advice - truedelphi Dec 2013 #53

If she lived with you and you didn't charge her rent pnwmom Dec 2013 #57

It's doable Proud Public Servant Dec 2013 #58

Is this a surprise? beachbum bob Dec 2013 #59

Message auto-removed Name removed Dec 2013 #60

a 30K salary right out of college is normal, sadly laundry_queen Dec 2013 #67

They must be shitty accountants joeglow3 Dec 2013 #79

Nope. All A students. Just not designated yet. laundry_queen Dec 2013 #80

There must be a glut of CPA's then joeglow3 Dec 2013 #84

easy SoCalDem Dec 2013 #69

Best of luck to her shenmue Dec 2013 #71

Thom Hartmann is right: we need a student loan jubilee. Ilsa Dec 2013 #72

Forgiven (paid for) by....? lightcameron Dec 2013 #92

How about a Wall St transaction tax or Ilsa Dec 2013 #93

Here is discussion over at Naked Capitalism about student loans truedelphi Dec 2013 #74

She may qualify for income contingent re-payment... $350 seems quite a lot JCMach1 Dec 2013 #75

Message auto-removed Name removed Dec 2013 #76

my friend's daughter is a 1st year DesertFlower Dec 2013 #78

Congratulations to her on finding employment!! WhaTHellsgoingonhere Dec 2013 #87

Thank you! She is thrilled too B2G Dec 2013 #89

Second job. lightcameron Dec 2013 #90