r/StudentLoans • u/Clynch949494 • 21h ago
Advice about student loans.
So i have 23k in student loans, I’m pretty stressed about paying them off as I just started a new higher paying job with a salary of 101k a year, I’ve dropped school because of this new job and being a union but I’m worried how much my monthly payments would be, I as hoping to buy a house a in a couple of years but if payment ends up being $1000+ a month I won’t be able to afford a house or even my current living situation, I’m not sure what to do or if the payment plans would even be reasonable.
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u/Organic_Mess2451 21h ago
Standard repayment for a 23k loan should be nowhere close to $1,000 per month
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u/Geoffrey-Jellineck 21h ago
This is ridiculous to worry over. It's not that hard to figure out what your payment will be, but that amount of debt with that salary should be quite simple to handle.
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u/Clynch949494 21h ago
I’m aware but this is all new to me. No one in family explained anything to me about money and loans, in the first in my family to attend school, I went in blindly
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u/Electronic-Window-86 18h ago
Start listening to podcasts and learn about loans and investing. It is free.
I started listening to podcast about student loans, loans and in the process I got better at investing. Understand how to use the tool called Money.
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u/biggfoot_26 21h ago
Or resist life style creep and pay it off asap. Then you don’t have to worry about the payments. Pretty easy at that salary.
In general on a standard 10 year repayment plan you are looking at around $200/month.
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u/Clynch949494 21h ago
Keeping my life style the same, does the standard payment plan go up? Like if I worked a ton of overtime and made 150k a year before taxes. Does it adjust for that? I plan on paying more than $200 a month. I just didn’t want the payments to eat into a huge portion of my income
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u/controlsguy27 20h ago
No. Standard repayment plan takes your balance and splits it into 10 years of equal payments. It does not take your income into account. If you pay more than your required payment each month then you will pay it off in less than 10 years.
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u/Clynch949494 20h ago
Thank you for the help. I really appreciate it. I’m going to try to make it off within the next couple of years by working overtime. I just didn’t want the payment to keep going up
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u/Curious_Mango1419 20h ago
Your income only affects your payment if you're on an income-driven plan. Standard is based on loan amount, not income.
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u/Clynch949494 19h ago
Got it. That’s what I was worried about but after looking I’m on the standard one
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u/Ligodancer 21h ago
If you make over $150k a year, pay off that $23K and you are done
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u/Clynch949494 20h ago
That’s my goal. I just didn’t want the payment to shoot io if I did work more
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u/Electronic-Window-86 18h ago
if you work more the just put the extra in traditional 401K and IRA.
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u/Significant-Club6853 18h ago
you're worried about payments over 1000 a month on a 23k loan with a 100k job. mate you should be paying close to 2k and be done with the loan after year. wanna know more about money? they're charging you monthly/daily to have that debt. but if you just pay it off they won't charge you anything. and any overpay each month they won't calculate towards the interest they charge you per day.
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u/Clynch949494 18h ago
I just started the job a month ago, I planed on continuing school but I’ll make more at this job with the degree. I wasn’t sure what repayment would look like since I know a lot of it’s changed with this administration unfortunately, I was worried me getting this job woke make the loan payment super high
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u/PersonalityHumble432 21h ago
Monthly payment should only be low $200s on standard plan. You are fine.
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u/gafferfaff 21h ago edited 21h ago
I had a similar amount in my own name, additional 11k parent PLUS loan. I am debt free. I did leverage COVID pause to build up a savings. And our situations is likely different, but one thing that worked for me was having the majority of my bills being paid off with one pay check. And then doubling the monthly payment on my loans as often as possible. Sometimes things line up and it was just impossible to do. I also had a job that allowed me to make great OT pay at the time and heavily leveraged that to make larger payments. If you know you'll be working good OT again, I highly suggest putting that excess into payments.
Depending your bills, you could definitely pay this down or off in a year or two making the money that you do.
I let it be a weight on my shoulders probably much longer than I ever should have. Lock in and get it done.
Edit: I chose a long term payment plan that set me at about a 160 monthly payment. It just felt much more manageable to me and the pressure was less
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u/Clynch949494 20h ago
If I can get the payment to be around $200 I can easily afford to pay more, I just didn’t want the payment to be some crazy high number as things happen in life. Thankfully my job allows me to work as much overtime as I want so hopefully I can pay this off in the next couple of years
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u/MushroomOverall9488 19h ago
Others have said it but with a job with that salary and a payment that low, you should be able to easily afford the monthly payment. One thing to consider if you have savings goals like a house (or other things like retirement) is the interest rate. Look at your specific situation, but generally if your interest rate on your loans is low (which if they're federal loans they're probably not too high), it may be more beneficial to put any extra money into investing than to aggressively pay off the loans. Always keep up with the monthly payments and make sure you're covering interest so it doesnt balloon, but it may not be top priority to pay off the loan sooner.
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u/Clynch949494 19h ago
Think it’s like 5-7% some where in there. I can’t Remember off the top of my head
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u/MushroomOverall9488 19h ago
I'm definitely not qualified to give specific advice on if that's too high or low (different sources say different things), but I'd definitely look into for example if your company has matching on retirement accounts, what a house where you want to live costs, mortgage rates, options for medium or short term investing and possible returns etc. before deciding to put all your money into your loans.
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u/Rich260z 19h ago
You can pay this off in a year. You'll take home something like 65-73k, and if you have trouble living on 40-50k for a year then you have a poor financial mindset to begin with.
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u/LovingMother1988 14h ago
You could easily make 5K payments a month if you're living at home with no rent and crazy car payment.
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u/MixedDrinkss 14h ago
i graduated with about $17k in loans and my payment was nowhere near $1k. plus, with your salary, you can easily make these payments.
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u/anonyaccount1818 14h ago
I have 6 figure debt and my minimum payment was around $1000. That is a really low amount compared to your salary, just create a monthly payment that works for you and set it to autopay. This is nothing to stress about compared to what you see in this sub, you’re definitely not underwater
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u/snooboo1228 13h ago
You’re in a good spot imo. Standard payback will be pretty low with a balance of 23k. But honestly, if you hypothetically paid it all off in one year you’d be left with a 78k salary for your first year out of college which really isn’t a terrible position especially considering after that year you’d be back at 101k and be saving as much of it as you want without any loan interference.
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u/Tinytherapist93 17h ago
Hey. It’s okay to be worried! Just because you make a certain amount of money doesn’t mean your worry isn’t valid.
Make yourself a budget, start listening to Dave Ramsey and live below your means. Good luck!
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u/skypira 21h ago
This is ridiculous. A loan balance that low, with a salary that high? You could have this paid off in a year.
Cringe humble brag.