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F

fan_from_texas

Senior Member

2,693 posts
Oct 1, 2012 12:03 PM
Who else is carrying (or has carried) the burden of student loans?

I just made my final payment to Sallie Mae last month--approx. $150k paid off in 4 years, so I'll hopefully never see another student loan again in my life. Still, it feels kind of bad to have devoted so much of my life to paying off that debt only to be in a spot where I feel like I'm finally level again.

Has anyone else paid off their loans? What (if anything) did you do to celebrate? I bumped up the contribution to C's 529 plan, but otherwise we haven't changed much yet.
Oct 1, 2012 12:03pm
Automatik's avatar

Automatik

Senior Member

14,632 posts
Oct 1, 2012 12:10 PM
Wow man...congrats. Hell of a total to pay off in only 4 years. I've been paying on them for 2 years now and finally making some headway.
Oct 1, 2012 12:10pm
sleeper's avatar

sleeper

Legend

27,879 posts
Oct 1, 2012 12:15 PM
Impressive.
Oct 1, 2012 12:15pm
Commander of Awesome's avatar

Commander of Awesome

Senior Pwner

23,151 posts
Oct 1, 2012 12:16 PM
I was lucky, only had to take out about $5k in student loans which I paid off in about 6 months after graduating.
Oct 1, 2012 12:16pm
FatHobbit's avatar

FatHobbit

Senior Member

8,651 posts
Oct 1, 2012 12:16 PM
I only had about $8k in loans, but it was still nice when they were paid off.
Oct 1, 2012 12:16pm
Automatik's avatar

Automatik

Senior Member

14,632 posts
Oct 1, 2012 12:23 PM
I'm f'n buried. Studying abroad killed me.
Oct 1, 2012 12:23pm
derek bomar's avatar

derek bomar

Senior Member

3,722 posts
Oct 1, 2012 12:24 PM
I have 50 approx (10 under, 40 grad) that I am taking my time with as I am not in a position to pay them off early right now (just got married/bought a house). I will probably start paying extra on it soon though.

Sidebar... if the gov't ever wanted to jump-start the economy, they'd forgive student loans (or a portion over a certain $ amount). That'd be titties.
Oct 1, 2012 12:24pm
gorocks99's avatar

gorocks99

Senior Member

10,760 posts
Oct 1, 2012 12:28 PM
Only about $80k to go here, ha. Worth it though. The grad degree that makes up most of that burden took me from a dead-end field that my undergrad would've funneled me into (tv journalism) and into a much more lucrative one (market research).
Oct 1, 2012 12:28pm
O-Trap's avatar

O-Trap

Chief Shenanigans Officer

14,994 posts
Oct 1, 2012 12:32 PM
I have about $50K to go.

Damn private school tuition. ;)
Oct 1, 2012 12:32pm
G

gut

Senior Member

15,058 posts
Oct 1, 2012 12:36 PM
I'm paying like 2.25% on my loans. Why in hell would I pay that off early?
Oct 1, 2012 12:36pm
O-Trap's avatar

O-Trap

Chief Shenanigans Officer

14,994 posts
Oct 1, 2012 12:39 PM
gut;1284548 wrote:I'm paying like 2.25% on my loans. Why in hell would I pay that off early?
Because 0% is lower than 2.25%. ;)
Oct 1, 2012 12:39pm
Scarlet_Buckeye's avatar

Scarlet_Buckeye

Senior Member

5,264 posts
Oct 1, 2012 12:45 PM
About 60k to go and feeling every sad penny of it :(
Oct 1, 2012 12:45pm
S

Sonofanump

Oct 1, 2012 12:48 PM
derek bomar;1284542 wrote:Sidebar... if the gov't ever wanted to jump-start the economy, they'd forgive student loans (or a portion over a certain $ amount). That'd be titties.
No.
Oct 1, 2012 12:48pm
F

fan_from_texas

Senior Member

2,693 posts
Oct 1, 2012 12:48 PM
derek bomar;1284542 wrote:I have 50 approx (10 under, 40 grad) that I am taking my time with as I am not in a position to pay them off early right now (just got married/bought a house). I will probably start paying extra on it soon though.

Sidebar... if the gov't ever wanted to jump-start the economy, they'd forgive student loans (or a portion over a certain $ amount). That'd be titties.
I've heard people talk about this, but I'd be livid. I mean, we made some major sacrifices to pay off our loans early, and if suddenly the gov't just waved a wand and reduced outstanding loan balances . . . that would seem really unfair.
gut;1284548 wrote:I'm paying like 2.25% on my loans. Why in hell would I pay that off early?
Our loans were at 6.8%, but if they were at 2.25%, we'd still pay them off early to improve cash-flow. In my field, my income is likely to be highest these first few years, then once I'm fired or quit, I'll take a 30-50% paycut. Better to pound out the debt early, even if there's some opportunity cost with low interest rates.
Oct 1, 2012 12:48pm
B

BR1986FB

Senior Member

24,104 posts
Oct 1, 2012 12:53 PM
Count me in as one of the few who only had to take out smaller amounts. Paid off long ago.
Oct 1, 2012 12:53pm
sleeper's avatar

sleeper

Legend

27,879 posts
Oct 1, 2012 12:53 PM
I think the government forgiving student loan debt is entirely possible; but it'll be for minorities only because all white people are rich and owned slaves.
Oct 1, 2012 12:53pm
S

Sonofanump

Oct 1, 2012 12:54 PM
fan_from_texas;1284569 wrote:I've heard people talk about this, but I'd be livid. I mean, we made some major sacrifices to pay off our loans early, and if suddenly the gov't just waved a wand and reduced outstanding loan balances . . . that would seem really unfair.
It would seem and would be unfair. You signed the loan, you knew the terms, you pay it back. But of course in today's world, it is quite possible that it happens since we are overtaxed to pay for programs that are not needed or for private business bailouts.
Oct 1, 2012 12:54pm
G

gut

Senior Member

15,058 posts
Oct 1, 2012 12:58 PM
fan_from_texas;1284569 wrote: Our loans were at 6.8%, but if they were at 2.25%, we'd still pay them off early to improve cash-flow. In my field, my income is likely to be highest these first few years, then once I'm fired or quit, I'll take a 30-50% paycut. Better to pound out the debt early, even if there's some opportunity cost with low interest rates.
There's a TON of opportunity cost with such a low rate. Besides being able to easily double or triple that return in the market, it is the cheapest and most affordable debt, cheaper than even a mortgage. It's like why pay off $20k in student loans only to take out an extra $20k in a mortgage at a higher interest rate? Why pay 4.9% on a car just to pay off a loan at 2.25%?

6.8% is a different story. Makes sense to pay that off as quickly as possible.
Oct 1, 2012 12:58pm
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like_that

1st Team All-PWN

26,625 posts
Oct 1, 2012 1:01 PM
I was fortunate enough not to have any loans. In fact I finished both degrees with a good amount of money left.
Oct 1, 2012 1:01pm
sleeper's avatar

sleeper

Legend

27,879 posts
Oct 1, 2012 1:03 PM
gut;1284585 wrote:There's a TON of opportunity cost with such a low rate. Besides being able to easily double or triple that return in the market, it is the cheapest and most affordable debt, cheaper than even a mortgage. It's like why pay off $20k in student loans only to take out an extra $20k in a mortgage at a higher interest rate? Why pay 4.9% on a car just to pay off a loan at 2.25%?

6.8% is a different story. Makes sense to pay that off as quickly as possible.
You are under the assumption that the person has an additional 20k in capital to finance the mortgage. Unlikely.
Oct 1, 2012 1:03pm
G

gut

Senior Member

15,058 posts
Oct 1, 2012 1:03 PM
sleeper;1284578 wrote:I think the government forgiving student loan debt is entirely possible; but it'll be for minorities only because all white people are rich and owned slaves.
At least not for anyone with a job or making more than a certain amount. Kind of like a "you tried and failed...we're sorry so let us pick-up the tab".

You can't forgive student loan debt any more than you can mortgages. Now I agree something will happen, but what that probably means is student loans will now be able to be discharged in bankruptcy. That means higher rates for everyone.

There's a bubble in student loans and all of gubmit making. I can't think of a single reason why the gubmit should be involved in that business. Student loans are a $1T+ failure. They haven't made college more attainable or affordable, they've just squeezed out some private money and billed the taxpayer for the cost of that.
Oct 1, 2012 1:03pm
sleeper's avatar

sleeper

Legend

27,879 posts
Oct 1, 2012 1:08 PM
gut;1284593 wrote:At least not for anyone with a job or making more than a certain amount. Kind of like a "you tried and failed...we're sorry so let us pick-up the tab".

You can't forgive student loan debt any more than you can mortgages. Now I agree something will happen, but what that probably means is student loans will now be able to be discharged in bankruptcy. That means higher rates for everyone.

There's a bubble in student loans and all of gubmit making. I can't think of a single reason why the gubmit should be involved in that business. Student loans are a $1T+ failure. They haven't made college more attainable or affordable, they've just squeezed out some private money and billed the taxpayer for the cost of that.
Spot on. Especially the bolded.
Oct 1, 2012 1:08pm
T

Tiernan

Senior Member

13,021 posts
Oct 1, 2012 1:13 PM
I'll be on the F'n news as a crazed gunman mowing down State Reps if the Govt forgives Student Loans. All us old Fkrs had to pay years and years and now all you young dooshers need to do the same.
Oct 1, 2012 1:13pm
derek bomar's avatar

derek bomar

Senior Member

3,722 posts
Oct 1, 2012 1:16 PM
since when has the gov't worried about being fair?

Also, while it isn't "fair" to those who've paid off their loans - what's the difference between forgiving that and the Fed buying up shitty mortgage loans off of banks books? It'd just be a more efficient way to inject stimulus into the economy, and it would impact people personally and more broadly rather than large banks.
Oct 1, 2012 1:16pm
G

gut

Senior Member

15,058 posts
Oct 1, 2012 1:18 PM
sleeper;1284591 wrote:You are under the assumption that the person has an additional 20k in capital to finance the mortgage. Unlikely.
Doesn't matter whether it's $2k or $20k. Point is you pay-off your most expensive debt first, but at 2.25% there's absolutely no reason to pay it off. Like I said, 6.8% is a different story. That's a rate where I'm much more indifferent, being a decent enough return (when it's guaranteed) on my money, and there's a lot of debt that is cheaper than that.
Oct 1, 2012 1:18pm