Student Loans

[Jenksismyhero]

Is the standard term a 10 year term? I never changed the term, but with the pace of how I am paying them off there is no way they will be paid off in 6 more years.

 

About 40k of my students loans are private and about 19k are federal. The federal has an int rate of about 6%, my Discover private student loan is surprisingly only 3.12%, but I only have about 7k of debt on that one. My chase private loan of 31k has an int rate of 4.76%. How strange is it that my federal student loans have the highest int rate?

 

I think it depends on the type of loan, at least with federal loans. I have a bunch of loans, some were on 10 year terms, others (I think some of my consolidated loans) were 25. Not sure about private.

 

My interest rates range from 1.75% to 6.5%. It varies based on when you obtained them I think. Back in the early 00's they were giving away money for free practically. Then that started to rise right before the recession.

 

My wife (masters degree) and I (law degree) have an ungodly amount of school loans. I'm planning for us to have everything paid off by the time we're 40, which is f***ing depressing, but we'll see what happens as we add more kids (and more ridiculous day care).

 

 

[kevo880]

I think it depends on the type of loan, at least with federal loans. I have a bunch of loans, some were on 10 year terms, others (I think some of my consolidated loans) were 25. Not sure about private.

 

My interest rates range from 1.75% to 6.5%. It varies based on when you obtained them I think. Back in the early 00's they were giving away money for free practically. Then that started to rise right before the recession.

 

My wife (masters degree) and I (law degree) have an ungodly amount of school loans. I'm planning for us to have everything paid off by the time we're 40, which is f***ing depressing, but we'll see what happens as we add more kids (and more ridiculous day care).

 

That would make sense that the federal is a 10 year term and the private is longer. My monthly payment on the federal is higher than my Chase private loan even though it is about 12-13k less in total debt. I just did the calculation and it will be paid off in 5.9 years, which would be 10 total. With the amount I pay on my Chase loan per month it will be paid off in about 11 years, which would make it 15 total. The Discover one calculates to being paid off in about 7 years, which would put it at about 11 years total...odd.

[dasox24]

Unfortunately that is capped at a certain income level.

 

I made the mistake one year of deferring (forbearance) for about 6 months when I moved out here and took a new job so I could get a handle on what my expenses would all be, etc. Boy was that a mistake...seems like I was paying off that interest forever.

Yep, if you make $80,000 and are a single household, you can't deduct the student loan interest. Even if it's not very common for people to make that right out of school, after a couple years, that number could be very feasible depending on your field of work.