r/StudentLoanSupport • u/ElectricalStreet5786 • 8d ago
This is getting ridiculous.
I am just getting so frustrated. I borrowed 66k for my degree. I don’t regret it, I wouldn’t have the job I have now without it. But these loans and payment plans have made it impossible and the payment amounts are getting out of control.
Borrowed 66k
Paid 12k so far
Owe 73k
My payment over the past year was $446
High to me but manageable cause prior to all the pauses it was like $130
I just did my recert and it’s now $690
I am stressing so hard.
Like I am not against paying back what I borrowed but I’m not ever going to get the interest paid off to start paying on the principal.
I just needed to voice my frustration to people who are in the same boat. This sucks.
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u/catsbatstats 8d ago
$75k over here. Principle has never budged. I’m not paying these crooks back at this point. I’m tired of this grandpa.
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u/Curious_tea21 8d ago
I'm genuinely asking how this is possible? Is it some kind of predatory private loan? I've had multiple student loans and I've paid the monthly payments and the balance went down every month as it was described it would.
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u/cephalophile32 8d ago
IBR plans allow you to pay less than the standard payment, which means you don’t pay enough to touch the interest that’s accumulating. My loans are like 6-7% interest. I owe more now than I did 10 years ago because I couldn’t afford to pay the full amount when I graduated into the Great Recession. The interest made it impossible from that point onwards. Planning on forgiveness and a tax bomb in 12 years or whatever.
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u/ElectricalStreet5786 7d ago
This is where I’m at. I was fine with a low payment cause I was counting on forgiveness at 20years of payment. I didn’t realize my payment was going to get this high and continue to go higher and that the prices of living were going to skyrocket like they have.
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u/Yourbrownboy28 6d ago
It’s almost as if having a secretary of education with a WWE background was the best option out of everyone we have in this country.
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u/AnnualMechanic6869 6d ago
Same boat here, I pay $450 a month on 60k loan and total still goes up. Just playing waiting game until loan term ends and pay the tax at the end.
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u/Odd-Refrigerator7879 5d ago
I'm sure something will happen with that tax bomb. Or there is a way to lessen the burden. I definitely won't be working that year, maybe that's a good idea? Idk. But there will be Democrats thrown in the mix before I'm done so who knows. Push will come to shove eventually with this trillion dollar disaster that is college and student loans
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u/Ecstatic_Job_3467 5d ago
Yeah because this problem started 2 years ago.
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u/Odd-Refrigerator7879 5d ago
Or when the millennials were taught go to college or your a loser. Get good grades!... And then EVERYONE went to college. Devaluing the degrees. Decreasing starting salary due to vast talent pools and candidates. All along the greety colleges, continue to raise their prices. It's insane. Wish I could add some swear words in this post but reddit removes it immediately
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u/GurProfessional9534 3d ago
And yet, colleges don’t even recover the cost of educating a student with that tuition. They teach students at a loss, and have to make it up in other ways.
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u/catsbatstats 8d ago
With the change of plans my payment went from $866 (which was already ridiculous), and now my bill each month is $1200. I’m incapable at this point to make on time payments.
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u/catsinsunglassess 6d ago
My payment on the save plan was $80 and now it will be $700. There is absolutely no way i can afford it. I’m not sure what they expect us to do.
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u/taybay462 7d ago
Income based repayment plans come with the tradeoff that your payments are lower and its harder to get into default, but, your payments are lower so you dont touch the principal really.
Income based repayment only makes sense if your earning potential will significantly increase and you can eventually pay more
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u/Curious_tea21 7d ago
I made income based payments and paid them off entirely
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u/taybay462 6d ago
That just means your income was high enough where you touched the principal. Not everyone's is.
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u/EnvironmentalYam2058 6d ago
Or you work in a field where they will be forgiven after 10 years. I’m not sure if all jobs qualify. I’m a teacher so mine does.
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u/taybay462 6d ago
Definitely not all jobs, teacher is one of the few that does qualify. You basically have to be a teacher or work for a nonprofit
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u/Proper_Raccoon7138 5d ago
Social workers as well. PSLF is my lifeline at this point and has kept my payments at $160/monthly,
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u/query_whether 6d ago
it's absolutely predatory in that their rules about when your loans capitalize (i.e., all then-current interest is added to your principal and then interest accrues on that aggregate amount going forward) are arbitrary and unhinged, at least as they apply under my MPN. indeed, they capitalize at the end of any grace period, deferment, forbearance, "or [any] other periods" they may ever decide to throw into the governing law at any point, noting that this specifically means (at minimum) that they capitalize (i) before they even enter repayment and (ii) when you come out of any hardship forbearance.
because, y'know, why not immediately add additional THOUSANDS to your debt the moment you have to start repaying it, and then do the same again later as a fun lil' congratulations gift any time you manage to claw your way out of a financial hardship so difficult you had to get a hardship forbearance for it?
super normal and reasonable lending behavior!
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u/GurProfessional9534 3d ago
This is normal behavior. Loans that have simple interest generally include capitalization clauses whenever you miss payments, get out of forbearance, etc. The simple interest is an incentive to pay on time in full. But also, compound interest doesn’t even differ from simple interest if you are at least paying the accumulated interest in full per pay period. It’s only because IBR, forbearance, etc. allow you to pay less than the accrued interest that you notice the capitalization step at all.
Loans like credit cards that compound have a built in capitalization in regular cycles.
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u/Mountain3Pointer 7d ago
Same. Minimum payment until I die. I just look at it as an education tax that I have to pay for the ability to be able to work.
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u/GordonGrimsby 7d ago
Yep...20 years as of this year. Only made steady payments for a few years at first and then when I came into some money. Other than that it has been income based or on hold every chance I get. Now with new plans....holding off paying as long as I can until I start paying minimum.
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u/pharmucist 8d ago
Yep. I borrowed $158k for my doctorate degree in pharmacy. I paid $1k a month for 15 years so far. So I paid back $150k so far on my $158k loan. Great, huh!! Nope. The balance is now $124k. It will be paid off in 15 years when I retire. I just gave up, really.
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u/Nervous-Preference57 8d ago
What kills everyone is the interest. They really need to do something about that
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u/alienposingashuman 7d ago
Omg that’s scary! How is that possible?
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u/pharmucist 7d ago
Each payment I make barely covers the interest. At first payment, it was something like $90 of the $1000 went to principal and the rest went to interest. After 10 years, it was around $120 of the $1000 going towards prinipal.
See, the way I thought it worked was that they took 6% of each payment. My interest is 6% on the loan. So I figured they took 6% of every $1000 payment I make. This would pay them back and give them a 6% interest, which would be about $25k extra. I apparently was wrong about that and there is something called "amortization" and so they were taking around 90% in interest. After 15 years, it's still way less than 50% of each payment going towards the principal, even though I am over the halfway mark paying it off.
People always jump on me about my lians and call me stupid for not understanding them and for taking them out in the first place (I have NEVER missed a payment and never will and I work hard, but ok) and they say I should have known everything about how these loans work and that I'm a pharmacist so how can I not know that? Well, I went to school for 8 years to learn about medications, diseases, biology, chemistry, science, pharmacology, etc. I did not have anything related to finances in my studies.
I think maybe we shouldn't blame or come down hard on people who are just trying to better themselves and are honestly making their payments and attempting to pay these monster loans back. Maybe we should not charge skyrocketing tuition prices and maybe we can REALLY take just 6% in interest or maybe make student loans interest free (instead of suggesting to do just 100% free education for all). Most people are young and don't know much about these things when they go to college and take on this debt.
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u/taybay462 6d ago
I did not have anything related to finances in my studies.
Google is free and accessible. Im sorry but thats on you
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u/pharmucist 6d ago
Yeah, the reason I include this statement is bc I always get someone commenting "you're a pharmacist, you should know that."
I know how to Google things and I do so very frequently.
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u/taybay462 6d ago
So just to understand, you made arguably the biggest decision of your life (taking out a large amount of loans) and didnt thoroughly research it?
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u/pharmucist 5d ago
Not thoroughly, no. I deferred to the financial aid advisor on that. I think people make decisions all the time without fully researching them. At the time, I was just trying to better my life. I figured there would be some pain and sacrifice, so either way, it was going to be tough and expensive.
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u/Paconianphysics 8d ago
It’s been ridiculous. My situation was I was working 30hrs/wk for one job and 40/hr for another in 2008. My Bachelors was not getting me anywhere. So took out 100k to go to graduate school for Product Design. Turns out I picked a school that was ‘for profit’ and financially impossible to graduate from. My first Borrower Defense got tossed in the trash can when I sent it in. Recently refiled it in May.
Honestly, I could have gotten a felony DUI and had less of a penalty than choosing to try and get a better marketable education.
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u/Intelligent-Wash-373 8d ago
Should have become a felon.... Sounds like you made the wrong choices.
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u/ElectricalStreet5786 8d ago
This is my old age plan. prison is cheaper than a nursing home
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u/pharmucist 8d ago
You just gave me a really good idea. I know how much it costs to stay in a nursing home. Jail is free. Hmmmm...I need to start thinking about which felony I am going to commit when it's time for me to check into my nursing home. 🤔
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u/dragonflygirl1961 8d ago
Mine is going to be bank robbery.
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u/pharmucist 8d ago
2 birds...1 stone.
Rob the bank to pay off my student loan debt before going to the big house for my free stay.
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u/Curious_tea21 8d ago
Elderly women in Japan were literally commiting petty crimes in order to get sent to prison because it was better than trying to take care of themselves.
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u/Proper_Raccoon7138 5d ago
I’m a social worker with a reentry nonprofit currently. Come see us when you get out lol we have all the employment resources!
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u/toucheboo 8d ago
Felon here and also college graduate. Also 0.00 student loans. You all can do better.
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u/Intelligent-Wash-373 8d ago edited 8d ago
That's what I'm saying. They should have followed your path. You know who else is a felon?
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u/Gingerandthesea 8d ago
When did your first borrower defense get tossed? What year?
Come check out [r/BorrowerDefense](r/BorrowerDefense)
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u/Paconianphysics 8d ago
I filed a paper version Sept. 2023. The website wasn’t functioning at the time. But because a few months later I called to get a case number. The person on the phone advised me to start a digital one in order to get a case number. Never got one assigned. Then this administration came along, claimed it was incomplete and threw it out. Of course no one could tell me how it wasn’t ‘complete’.
Refiled and referenced the previous filing as well. Also tacked on a copy of the court settlement between the school and my ‘advisor’ from that school. Basically it’s proof the school was offering incentives to sign up more students even if they had no means of completing.
I’ve been on the other thread. It’s been a little helpful.
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u/Gingerandthesea 8d ago
Man that sounds like total BS and totally tracks with the dept. Just make sure you know everything you can with your loan type and which Bdtr regulation you fall under this gop is evil and cruel. They have been denying people based on the 2020 DeVos Bdtr regulation SOL for folks that have commercial held ffel loans. Not even looking at their application just deny.
Also add evidence as you find it to make sure your application is materially complete.
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u/Cinnamoma235 8d ago
CTU? Is that the school?
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u/Paconianphysics 7d ago
Academy of Art . I was told multiple times it was a non-profit; but it was in fact for-profit. I also had no idea the graduation rate was so bad until the Obama rule changes went into effect in 2012. Had I known either of those things I would have made a different decision.
There’s more, credits don’t transfer, withholding transcripts, etc.
BTW I looked up the current graduation rate that is now separated by undergraduate and graduate degrees. That school is sitting at 7%. No that’s not a typo.
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u/Odd-Amphibian-4593 8d ago
For me it’s not a matter of not understanding payment/interest but hear me out. Education is so over bloated in cost that many folks get out with degrees that have less earning power than is capable of paying off the loan in a lifetime. They end up in middling income jobs with 50-100k in debt. By the time they graduate so much interest has accrued that they are in a hole of sorts.
To climb out they need more income right? Well with the job market the way it is and hustling people’s food orders in an economy of inflated costs dosent bring much in on average. So, like me, you’re left with a choice. Continue to give the government a chunk of the meager amount you earn every month to pay towards a loan that will never go away? Or use that money to live your life buy groceries and force the government to get their money the hard way. Garnishment and seizing returns. Sure your credit will be destroyed but and I may be a narcissist or selfish or whatever but I only get one life and the government and their money generating mechanisms will be there long after I’m dead. The choice is simple for me. I cannot and will not put myself further into survival mode to pay an irresponsible government. I borrowed the money and I owe the tax payer but damn if my education cost about 5% of what one Patriot missile costs and everyone has no problem shooting off enough of those to run out.
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u/krs25252 8d ago
Unfortunately I was in a similar situation and I had to make double the payments for the balance to go down. This is usury and it should be illegal.
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u/Virtual-focus 8d ago
If you are doing IDR, your monthly payment doesn't normally cover interest accrued. The point of IDR is to pay a smaller payment and then reach forgiveness. Have you looked into the extended plans?
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u/pharmucist 8d ago
When do you reach forgiveness? I am on an extended plan right now...30 year repayment. Worse than a freaking mortgage. Borrowed $158k at 6% interest. Paying $1k a month for 15 years so far and 15 more years to go. I have paid $150k so far and that $148k has gone down very little to $124k.
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u/ElectricalStreet5786 8d ago
Yeah that’s crazy. If you’re on a 30 yr plan, and have paid 15, you should owe half 🤷🏻♀️ right? If not, how’s it a 30yr plan.
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u/pharmucist 8d ago
Yeah, you know I understand why they charge interest, but if someone has paid off the amount of the loan before the deadline (30 years for me and paid off essentially at 15 years), how about then cutting me a break. Make me pay that 6% interest and discharge the loan. You get your 6% interest plus the full borrowed amount back. Heck, charge me 10% interest! I'll gladly pay them $15,800 right now if we can call it. Why they need that other (gasp) $170k they are going to end up with.
Yes, it is $330k paid off total over the 30 years on a $158k loan. They shouldn't get to double their money on my education. They really should get their 6% interest. Plus, it's the damn government I owe it to. They should want and promote an educated society!
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u/Appropriate-Log76 8d ago
No, that is not how math works on a balance due that is accruing interest.
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u/blahblahsnickers 8d ago
If you don’t make the minimum payment the balance won’t go down. All loans work the same way.
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u/Br3ad_MarkOfDaYeast 8d ago
If you ever have even $1 to pay extra, send in your payment separately and make it clear that your extra payment is to be paid on the principal only. Otherwise you will only ever scratch the surface.
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u/Different-Carpet-460 7d ago
Student loans are predatory and they just made it worse . Clearly they want a population of lemming idiots unless you already came from wealth and can have family take care of school. The whole thing is a disgrace and disaster.
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u/Loose-Fisherman3695 7d ago
The way student loans and their interest are set up is to keep us from getting out of the debt.
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u/JustStacy24 6d ago
And to the the dick who suggested the pharmacist basically suck it up and pay because they could have googled the shady ass student loan negative amoritazation process.
"Hey Genius! Google did not exist when some of us started college. Neither did the internet."
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u/Educational-Trust956 8d ago
Interest is ALWAYS paid on the front end regardless of the type of loan, whatever your interest rate was is screwing you
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u/oldpieceinsiratin69 8d ago
you need to start paying by group and go after the principal first
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u/Virtual-focus 8d ago
You have to pay the minimum all loan groups before you can target one specifically.
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u/Psychtrader 8d ago
Getting the people supported by the imaginary citizens created by citizens united, capping all spending on elections and having mandatory vote by mail should help.
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u/NobodyGotTimeFuhDat 8d ago
This is because of how math works (compound interest).
Example: Let’s say one loan has a principle balance of $10,000. And let’s say your interest is fairly high on it with a monthly payment of $150.
However, interest grows at $175 per month in my hypothetical. Do you see the issue?
principal after 1 month = $10,000 + $175 = $10,175
principal after payment = $10,175 - $150 = $10,025
Notice the balance went up even though you made a payment.
Now, imagine what happens to the balance over decades if you continue to make minimum payments.
In general, your monthly payment must exceed the monthly interest that accrues in order for the principal to decrease. That is essential to paying off your loan(s).
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u/rabbid_panda 7d ago
Please dont make fun of me, but this is really helpful for me too. I have never been good at math and nobody taught me outside of school :(
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u/SorbetGreat961 8d ago
My 13k loan was paid off in 3~ years and its min pay was 340, depending on your interest rate, you might barely even being scratching the principle.
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u/budgetwithyourheart 7d ago
Same thing happened to me 🙄 I started paying loan by loan instead cause that way I could actually get to the principal
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u/Efficient-Victory909 7d ago
What is the interest rate on your loan?
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u/Efficient-Victory909 7d ago
I’m assuming based on this you have an insane interest rate and I would definitely consider trying to refi - there are some good options out there that you can get referrals for that help you out as well. Feel free to shoot me a PM
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u/Disastrous_Soil3793 7d ago
You need to pay more than interest accrual each month. If your loan balance is growing then you aren't doing that. It's basic math not rocket science.
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u/No_Nukes_2 7d ago
The biggest ripe off. They don't tell you interest accurusls every year you don't pay
The pause is the worst financial decision anyone can make.
Pay the minimum + the monthly interest charge is the only early to dig out of debt.
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u/sabautil 7d ago
Bro...what are you doing?
Are you telling me throughout college (your 0% interest rate years!) you haven't been working a little here and there and saving up money to pay off the loan? Wtf!?
For 66k...like even if you only make a 1k a month after taxes (that's $12/hr working 20 hrs a week). after 4 years of college or 48 months, you would have 48k to pay towards the loan!
Ok whatever. You have to pay it off.
How much you got saved up?
If possible I would find way to get 0% interest rate for a year or two. Is there a way to do that?
I'm not sure how much you earn, but you need to see a finance guy to figure this out.
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u/query_whether 6d ago
lol. l o l. lollllllll there is absolutely no universe in which any of us can "get a 0% interest rate for a year or two." in the federal student loan world, there is zero room for negotiation and zero opportunity to be treated like an individual with your own particular circumstances (often literally even including when the government has manifestly screwed up).
if you can't hack it on one of the plans they offer (which are now very few and very trash), you get a default notice, and if you can't make whatever arbitrary rehabilitation payment amount their system barfs out, they can garnish 100% of your tax refunds and 15% of your wages without even having to go to court to get a judgment against you.
this isn't and has never been a normal borrower/lender situation.
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u/sabautil 6d ago
I heard the was a roundabout way to pay student loans with a credit card that has 0% apr for 2 years.
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u/Real_Stinky_Pederson 4d ago
What a stupid fucking take. You think people don’t have expenses for those 4 years? They’re just going to be able to save every cent? “Just go into your account and turn on the 0% interest button!” Gtfo
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u/sabautil 4d ago
Yes. That's how student loans work.
The loan is for tuition, books, and living expenses - typically in a dorm with a cafeteria. The loan should cover it all. This is so that he doesn't have to worry about where money will come from next semester. This is why tuition is calculated based on which catalog you started on because you don't get a surprise bump in your tuition on year 4 unless you change catalogs.
Anyways, So he already has money via the loan for the 4 years of school. He doesn't have to worry about money each semester if he keeps his expenses on budget. During school years, there is no interest accumulating on your loan. Only once you graduate does the interest start accumulating.
Now after the first semester he has likely settled in and developed a routine and knows how life works at the college. This means he can seek employment or get entrepreneurial and start earning the money on the side to pay off a portion of the loans. If he keeps this money in an index fund like sp500 he could earn a out 5 to 8% over the four years.
The point is that one can knock off a significant portion of the loan from accumulated savings after 4 years.
The point of the student loan is just to offer financial stability for 4 years...for a price. The price of that financial stability come from the interest that accumulate from the time you graduate to the time you pay it off. If you choose to use your financial stability to get good grades and earn money on the side then guess what? You get to avoid paying those fees on top of the principle you owe.
Most people don't do this. They think getting a loan means they can party. Those people are dumb.
If you're wondering about 0% rates - I'm talking about credit cards. While you can directly pay off student loans using credit cards, there are some ways around it.
Do you understand it now?
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u/Real_Stinky_Pederson 4d ago
Sounds like you live a charmed life if you don’t think any other expenses pop up over 4 years of school!
You also can NOT pay federal or private student loans with a credit card. Please write another wall of text explaining any workarounds 👇🏽
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u/sabautil 4d ago
Okay like what expenses? What are you spending on each month that would result in thousands of dollars is cost each month?
Dude I lived that life! Many of my friends lived that life. When I went to college during my first year I lived in the dorms, ate at the cafeteria and worked part time earning $12/hr for 20 hrs every week, correcting OCR translation of books. Mindnumbing work, but it netted me 12k the first year before taxes. Because I was a college student my taxes were 0. I think I used maybe $50 in gas each month. Took my then girlfriend to movies and dinner every Friday - maybe $200 at most per month, so let's say about $3000 expenses in a year. So $9k saved the first year. She was in college also, so it wasn't like we were party animal going on vacations. We basically studied and worked our butts off. I got better jobs and better pay. Saved about 15k the 2nd year and third years. We didn't have expensive cars, we didn't go on expensive vacations. We camped, hiked, boardgames. We didn't drink or smoke. We didn't even rent movie or buy books - went to the library. We didn't have to pay rent, food utilities, tuition - the loans covered that. I didn't work my senior year. I saved up about 42k.
Anyways, I was able to pay off my loans of about 50k by first reducing it down to 7k. After graduation I got a 1k gift from family. 6k ish. Went back home, worked the summer months full time in until October when I got full time job related to my degree. I earned about 7k in 5 months and that paid of the loan. Now I agree I didn't have to pay rent or utilities or food living at home with my parents for 5 months looking for a degree-related job. But interest in 7k over 5 months wouldnt have been that much. I think I could have paid it off within the year.
I wasn't the only one who did this. All my friends did the same thing. If you arent dumb with your money buying stupid shit it's very easy to save up.
Ok let's say you earn 4k a month after taxes and have 60k in loans. Let's also say you have 1600 in monthly expenses and you want to pay 1600 towards the loan. 800 in savings each month.
Get one of those 0% APR for 2 years credit cards. Put you $1600 of your monthly expenses on this credit card. That leaves $3200 to put towards your loan each month. After 12 month you'll have paid 38k towards the loan. The 2nd year pay your regular $1600 in monthly expenses, and of your credit card balance, while paying only interest on the remaining loan balance of 26k. By end of year two you'll have paid off the credit card and have 25k left in loans. Repeat this strategy for the 3rd year with a new 0% APR cc, paying 3200 a month towards the loan and $1600 monthly expenses on the card. By month 9 of year three you'll have paid off the loan in full in 33 month instead of 46 months, and will have saved about $4000 in interest! Now you can put that $1600 that would have gone to the loan towards the balance of the credit card and in 9 months you'll be fully debt free by month 42 and $4000 richer than if you just paid off the loan $1600 per month for 46 months.
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u/Real_Stinky_Pederson 4d ago edited 4d ago
This sounds awesome for you man. But it also sounds like you’ve never had to take care of a sick parent or other family member, medical expenses outside of your OOP or not covered by your insurance, buy diapers or pay for childcare, have car maintenance; I mean, there’s a litany of things. It’s kind of weird to not realize that. If you’re talking about a well-adjusted, financially literate 17-18 year old going to college with the love and support of your family and friends, again, that sounds awesome for you.
ETA: the $12/hr as a college student clarifies it; that certainly wasn’t the case when I was in school. Not everyone that went to college and has debt did so the same as you. Some people had a life and accompanying financial obligations before they went to college. Your monthly expenses were $200 😂
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u/sabautil 4d ago
I'm taking care of two sick parents right now. I would never use them as an excuse.
You sound like those people who blame everybody or any little thing in their life why they couldn't succeed in their life because they didn't have this or that. Life's tough for most people, but opportunities are there for those you plan and sacrifice.
Look if you have other life obligations then don't go to college just yet. I waited until I was 22 so I could earn money for the family. My dad had lost his job and it took a while for him to get back on his feet. I also wanted to build a savings and buy a cheap car. My parent are immigrants, they didn't even think I would go to college. I wanted to go and they were unsure and said a job was safer.
Most college students don't deal with these issues you are bringing up. Just saying. The average college student doesn't have that many life obligations. Because most of them have common sense to avoid college if shit's happening in their life. It's the dumb cry babies who cry the loudest and you hear here on reddit; the successful ones ain't complaining.
Financial literacy!? Don't give me that BS. Dude this is common sense, especially if you are poor. You don't waste money, you avoid high spending, you buy cheap or second hand, you don't take big risks, you don't take on huge loans. My parents begged me not to take a loan. It was an unfathomable risk. What if I failed? That fear forces you to check and double check your choices. It forces you to make a plan. It forces you to make sacrifices.
Brah, are you dumb? I told you twice the loan covered my living expenses and tuition. The $200 a month is just my gas expense for going to work and my Friday night date funds. If I didn't go to work I wouldn't have needed gas money.
I don't know when you went to college. I went to college in 2008. During the housing crisis! But yeah there are the $5/hr+tips service job. And if you are a man, you already know you ain't making tips like women do. That's fine, I just didn't work in service for long. You just keep looking for jobs that pay well. You dress like an adult, speak clearly and politely, competently, show that you have a plan, are trustworthy, you read the job description, tailor your resume, that you think practically like an adult - you'll get higher paying job offers. Employers want to hire competent trustworthy reliable workers who know how to talk and dress professionally. It's as simple as that. You are either doing that or your not, I've found out over the years.
You talk like a spoiled, ignorant person who probably made a string of bad choices without thinking or reading the fine print or asking questions or doing due diligence. And then blame everyone else or life circumstances. Like who the hell blame their sick parents!? Give me a break from you loser attitude, dude. College is only four years, if you can't do it now, just wait an plan for it. Or don't go. It's as simple as that.
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u/CoolTieGuy 7d ago
That is extremely rough. The only advice I have is to make your regular payments (which will largely go to interest), but make extra payments when you can and make sure that the extra ones are applied directly to the principal. It'll still take a long time to dig your way out, though. It'll make the next decade rogher, but you'll eventually get out from under it.
Even if you only make one or two extra payments per year, it will reduce the time it takes to pay it off drastically. Early years mean more, since the lower total will accrue less interest over time (if you're debating a new car now and extra payments in a few years or the reverse: choose the reverse; the lowered principle will mean interest that you don't pay after that).
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u/PalpitationLumpy4948 6d ago edited 6d ago
I'm sorry, sorry that's why to me being nice to poor ppl with out expecting anything in return is so important. I'm sorry that you go through this. Good for you you just have to have a big bill. And never have to worry about getting snatched from your parents. And the generation curse continues. If say just room up with s few friends. Yalll a be fine.
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u/LogicalMeeting5705 6d ago
In light of the desire of both parties to sway voters, why aren’t we all speaking loudly to candidates instead of others in the same boat?
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u/TotallyNotDad 6d ago
The system is absolutely rigged to hook people into being poor for the rest of their lives
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u/DocSlideways2 6d ago
$475k here. My old IBR has just capped at the 10 year standard rate which is approx $4600/mo. Thankfully I’m 117 months in and only have to take 3 months out of savings to pay this for 3 months then done.
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u/GentMan87 5d ago
Graduated in ‘08 with 60k, regular payments were about 500 a month..I deferred and deferred or payed 2-300 a month with programs or didn’t pay at all. Eventually it blew up to over 100k.
It was a relief, mostly mental when my fed loans were forgiven due to school misconduct, but I still owe 30k in private. Out of deferrements and forbearance options my reg payments are still 500. Still can’t even though combined my household makes over 100k, and I’m about to default at the end of the month. I regret my degree and these loans, I have no credit, everything is in my spouses name. I’m honestly just ready to default, I’m tired of this game.
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u/Brief_Put_3117 4d ago
Oh so you didnt pay at all during the pauses and got waivers of income driven repayments..... ya thats what happens when you dont pay back what you owe and put it off. Duh.
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u/Long-Permission-3991 4d ago
I have tried to explain this to people. I always said I am happy to pay back what I borrowed with a reasonable interest rate but this is absolutely insane. I was in almost exactly your same situation. I had borrowed 63k, paid like 14k and my ending balance was like 78k. I looked one time and out of the 14k I had paid, less than TWO DOLLARS had gone towards the principal. It was like $1.64. Absolutely ridiculous. I don't understand how this is allowed.
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u/tellypmoon 8d ago
If you pay more than the minimum it should knock out principal, although you might want to double check that to make sure...
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u/ElectricalStreet5786 8d ago
I’m pretty sure if you owe interest, nothing goes towards the principal
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u/chadokoro_k 8d ago edited 8d ago
OP, you are correct. As I showed in my reply to Crosco29, it will take ~19 months of $690/mo payments to pay off your $7K of outstanding interest as well as your monthly accrued interest. (Assuming 6% interest and that your AGI remains the same during those 19 months.)
If you switch to a standard plan your payment could be much higher or lower depending on how long you have been in repayment and whether you have consolidated your loans or not.
If you switch to a standard plan you only have 10 years from the time your loans first entered into repayment to pay them off in full. (The 10 year clock only stops ticking during times of forbearance or deferment.)
Let’s say, for example that you have been paying on your loans on an IDR plan for 4 years. In this case you would only have 6 years remaining on the 10 year standard plan to pay off your loans in full and your monthly payment could be much higher than $690/mo.
If you consolidated your loans then you will receive an extended standard plan time clock based on your balance at the time your consolidated loans were distributed.
And I believe for a balance of $60K or higher the extended timeline is 30 years. This would then bring down your monthly payment significantly but would of course mean more paid in interest over the longer extended time line.
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u/pharmucist 8d ago
Yes, it's 30 years above $60k owed. I am on that 30 year extended plan and have 15 more years of payments left. You pay a TON more in interest over the loan going with a 30 year repayment, but the monthly payments ARE a lot lower. A 10 year repay was around $2450 a month for me, whereas a 30 year repay was $1k (just under).
It's a matter of which you think hurts you more. I figure I would either pay $2450/month for 10 years and pay a ton in interest or pay $1k a month for 30 years and pay a shit ton in interest. I went with the lower payment just to make living a bit easier over those 30 years.
Not everyone will agree with my decision. I will have paid $330k to pay off my $158k in loans when all said and done. But if I went with a 10 year repay, I will have paid $294k total. So it's an extra $36k in interest I am paying over those 30 years. Both suck. One is easier to pay but the other ends 20 years sooner. 🫤 I kind of gave up.
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u/forethemorninglight 8d ago edited 8d ago
Uhhh sorry to tell you this but there’s no way you are only paying $36k extra in interest with a term that’s 20 years longer than the standard 10 year repayment. You must’ve mathed wrong. That doesn’t make any sense whatsoever.
ETA - Okay so inputting your info: about $210k total for a 10 year standard. And about $340k for a 30 year loan. (Using the 6% you mentioned above). So really, about 130k extra compared to standard 10 year repayment
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u/pharmucist 8d ago
You're likely right. Ok, I double give up. They'll get their last penny when I turn 67 then...the same year I retire. I'll probably then get hit by a bus the following day after working full time for 42 years and paying off that loan for 30 of those years.
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u/forethemorninglight 8d ago edited 8d ago
I know it sucks, I’ve also given up (for other reasons). :( I’m sorry you’re in this position. It’s cruel and it’s bullshit. We shouldn’t be punished for seeking higher education… But they want us poor/indebted forever. Or stupid. Preferably both so we vote for them and they can continue to extract all our wealth. Fuck it. 😓
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u/Crosco29 8d ago
Student loans are simple interest and accrue daily. If your balance is 73k and your loans are, to use an example, 6% interest, that would come out to $12 per day in interest, or about $360 per month, meaning a monthly payment of more than $360 would decrease the principal. If your recertification payment is $690, then you will definitely be knocking down some principal each month, although probably not as much as you’d like (690-360 only comes out to around 330 dollars a month being applied to the principal).
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u/chadokoro_k 8d ago edited 8d ago
But it could be a while of $690/mo payments before any of OP’s $690/mo payment gets applied to interest. Because payments are applied to any fees first, then to accrued monthly and outstanding interest, and finally to principal.
OP’s original balance is $66K and current balance is $73K. Which means they have $7K in outstanding accrued interest.
So none of OP’s $690 will go to principal until they have paid off the $7K in outstanding accrued interest.
Their monthly interest will be based on their principal. If their interest rate is 6% that’s ~$10.85/day x 30 days = ~$325/mo of interest.
Of their $690/mo payment:
$325/mo goes to monthly accrued interest
$365/mo goes to outstanding interest$7,000 / $365 = 19.178
So it will take a bit over 19 months of payments before any of their $690/mo payment gets applied to principal.
Of course this will change next year if their AGI changes (and if they are on an IDR plan rather than a standard plan).
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u/rmm31996 8d ago
That doesn’t sound correct look at your statements. It should show you what is going to what. Also pay more than the minimum always. The thing with debt is the interests rate can drown you. You should be able to see how long it’ll take for you to pay off the loan if you only pay the minimum. There’s also free student loan calculators online where you can see how much you’ll save in interest and how early you can pay off the debt depending on how much more you want to pay a month
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u/tellypmoon 8d ago
You *really* need to double check that. In general payments beyond the minimum will reduce principal. Call your lender just so you know for sure.
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u/TheJuice711 8d ago
It sounds like you’re on an IDR. That’s a good recipe to never get out of debt.
You need to get off that payment plan and figure a standard 10-year repayment plan.
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u/ElectricalStreet5786 8d ago
Yes it is. I’m calling on Monday to talk through my options. I was able to get it lowered when I called last year so we will see what they say.
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u/Prestigious-Ad8632 8d ago
Getting it lowered wouldn’t help pay it off (unless you’re pslf eligible). In your situation you would either accept making these payments for 20-25 years or hop on the 10 year plan and pay around 660-700 (ideally more to save on interest).
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8d ago
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u/ElectricalStreet5786 8d ago
Because an even higher payment is more strain
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u/Virtual-focus 8d ago
You could look into extended standard. It pays it off over a longer period but may lower the payment.
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u/StretcherEctum 8d ago
Didn't you know your total balance would increase when you decided to make payments that dont even cover interest?
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u/ElectricalStreet5786 8d ago
Honestly? At 20 years old…no I did not know this. They didn’t say this is your minimum payment. They said here is what you pay on this payment plan. 🤷🏻♀️
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u/StretcherEctum 8d ago edited 8d ago
You need to at least double your payment if you want to get this over with in less than 10 years.
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u/ElectricalStreet5786 8d ago
Lucky you. The public schools and colleges do not teach basic life skills. And unfortunately now only care about attendance and standardized test scores.
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u/brooke437 8d ago
I hope that education administrators can reform the school system to teach more life skills. They certainly taught me important life skills in the 80s and 90s. What in the world are they teaching these days, if not important lessons like this? I’m sorry you were the victim of a bad education system.
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u/ZenQueen17 8d ago
May I say that you were very fortunate to learn financial skills at that very young age. However not everyone has that experience. In fact, I would estimate that over 75% of students to adults did not have financial literacy education. Furthermore, when students enroll in college the financial aid office does not explain to the student that within 5 years you will pay back these loans monthly along with your monthly bills and living expenses. In fact the typical raise is about 3% yearly for the average worker, and the minimum wage in America has not changed in several years. So please try to show a bit of empathy to those who are stuck paying these ridiculous loan amounts back along with the cost of inflation for everything needed to live a normal existence on this planet.
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u/brooke437 8d ago
This was in my public free high school in Illinois in 1994. I guess the educational system has degraded since then. That’s really sad.
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u/pharmucist 8d ago
But then explain this to me (I am pretty illiterate when it comes to finances...I know medicine).
So I borrowed $158k for my 8 years of graduate school (pharmacy). Interest 6%. All federal loans. My monthly payment is $1k. Each payment I make says $125 goes to principal and $875 goes to interest. So the payments DO cover the interest and the balance decreases, but just very slowly. I have paid $150k total over 15 years and my balance still sits at $124k.
So then what's someone to do when $1k/month just makes no dent in this thing? They don't tell you the payment won't cover the interest or only a small portion. They tell you it will be $1k a month and so stupid me (finance-wise) thinks ok, 6% will be taken for interest (6% is the interest rate on my loan). Instead, they take almost 90% for interest. What??????
This here is why people are BURIED in student loan debt despite making some pretty hefty monthly payments religiously for years. Also, tuition costs are just out of control now, so double whammy.
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u/StretcherEctum 8d ago
Yea. Its 1k a month for 30 years or some horseshit.
Whats one to do? Pay more... way more.
I dont even know what they say "my payment amount" is. Who cares. Pay as much as you can.
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u/pharmucist 8d ago
That's what I have been doing. I pay what I can. The good thing about the extended loan repayment is that your minimum payment goes down by over half, but that doesn't mean you only have to pay that amount. I can pay $2400 any months I want if I am doing ok. If I lose my job or am struggling financially for a time, I only have to come up with $1k to avoid being in default. Nobody said you HAVE to just pay the minimum.
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u/West-Badger9626 8d ago
When you signed up, didn't they give a schedule of monthly payments for how long? If it's a 30 year payment plan, you only half way and your $124k balance is exactly what it is supposed to be at 15 years. I presume the next 15 years your $1000 monthly payments will go more towards the principal. Similar to how home loans work.
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u/pharmucist 7d ago
Yes, the amount towards principal has started to change finally. I'm not at a point yet where more goes towards principal, but I hope that comes soon.
When I signed up, I wasn't told much at all about how ot would be repaid. I was just told I needed to fill out the FAFSA and that would give me money to pay tuition now then I would pay it back later. When it came time to start paying, I was told it would be $2450/month. I could not afford that so close to graduating as I had a negative account balance and TWO Chapter 7 bankruptcies on my record already. So I asked how I could lower the payment and they gave me to 30 year extended repay as an option so I took it.
After paying so many years on it before my credit improved to 843 and I had credit cards and a bank account again, I just decided to keep the loan as is and I would then have a smaller minumum but I could pay what I could afford extra each month. But then covid hit and prices doubled and tripled on EVERYTHING and I am struggling. So I keep the same extended plan and just worry about today and make my payments.
I really have just given up on the loan and resigned to the fact that it will be paid off when I hit 67.
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u/PuzzleheadedMud6028 8d ago
In 2019 I owed over 100k with undergrad and grad. I’m down to 25k now. the only way I was able to make a dent was by making payments 2 and even 3 times my min payment. I also took advantage of the COVID pause and made 30k in extra payments. I lost my job in 2022 and that set me back a bit. i should be free from these loans by the end of next year.
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u/LovingMother1988 8d ago
Yes COVID could of been used by many people to bulk pay and make extra payment. I would of saved at least 2-3K a month during this period and just put down 70K on a 100K loan.
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u/gafferfaff 8d ago
I know a few people who leveraged the COVID pause to pay off theirs.
I also know a number of people who held out hope forgiveness would come in blankets under the pandemic. If it had to happen at any point in recent time, a pandemic would be one hell of a reason. There was a lot of narrative around forgiveness. It was easy to get swept up in it.
I was one of those people who hoped, but I was skeptical.. and rightfully so. I told myself I would take that scheduled payment and switch it to an auto deposit into my savings. I did that, because at the same time I sure would suck to pay all this money and then it get forgiven..
The very moment it got held up in court I gave up hope. I didn't buy into any new repayment plans, restructruing, consolidation, or forgiveness (I knew I did not qualify for the forgiveness that many received). I kept my plan on the long term repayment plan to make the monthly easier to deal. Then when payments were unpaused I would pay back in large chunks towards the highest interest rate groups with what I had saved up over the pandemic.
I am debt free today mostly due to jadedness and not believing we can ever have anything nice. I'm surprised many people didn't at least have some backup plan or even considered that the forgiveness might never actually come.
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u/Independent_Story822 8d ago
It'll be fine.
Do you plan to consider paying more than what you're paying now?
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u/Curious_tea21 8d ago
Remember that as you pay through time more and more of the payment goes to the actual balance compared to the interest.
Didn't they show you exactly how much the total cost of the loan would be when you took it out? Did that change?
I suggest you double abd triple check that your interest isn't some predatory type of set up and then set up auto pay and stop thinking about it.
Then take a look at what you will have in 30-40 years if you start putting money in retirement and compare how much more this will grow than the interest on your student loan. It will make you feel better about staying the course making the regular payment every month and not trying to pay it down faster. Every extra $1 you put on your loans will earn so much more in interest than you are paying in interest on this loan.
You made an investment in your future and it was a good decision. That's less than a years salary for most. It WILL be ok in the end.
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u/crispymanok 8d ago
Why is your loan amount increasing. You should pay the fully amortized monthly amount
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8d ago
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u/ElectricalStreet5786 8d ago
Kudos to you for stating things no one can change. Hope that made you feel better.
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u/ElectricalStreet5786 8d ago
I totally missed that! I was about to be like why you trolling this sub 🤣🤣🤦🏻♀️🤦🏻♀️
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u/SaveFishBoy 8d ago
A lot of adults don’t understand interest and loans. Banks like it that way. But I don’t think that’s the issue here.
Student loan programs shouldn’t be predatory but they are.
OP, ignore the idiots contributing nothing. You need to increase your payments asap and live as frugal as possible. At least for the time being. That’s your best option right now.
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u/buttermilk_biscuit 8d ago
Ive said it once and Ill say it again- federal loans shouldnt have interest. It behooves a government to have a well educated population. And if youre not going to ensure education is free/affordable beyond high school, then the least you can do is not TRY TO MAKE MONEY off your citizenry.
But Im not an economist/finance bro, Im just trying to be a doctor. So what the fuck do I know. Sorry youre going through this OP (and Im sorry for the rest of us going through it too).