Beginner’s Guide to Repaying Student Loans

  • Posted by a hidden member.
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    May 17, 2014 5:55 PM GMT
    NYT: Too many people, including plenty of brand-new college graduates, fall far behind on their student loan payments for no good reason.

    How many? The Department of Education does not supply much data on late payments. But the student loan expert Mark Kantrowitz, using data from lenders, estimates that between one-quarter and one-third of borrowers are late paying their first student loan bill.

    Whatever the numbers, they add up to a normalization of tardiness that can damage the credit scores of young adults. And one big reason it’s happening is the fact that many among the indebted simply aren’t sure how many loans they have, how and when to pay them back correctly and how to find and use programs for people who can’t afford the full payments.

    What follows is a basic guide for rookie student-loan debtors that can keep people out of some of the most common types of trouble.

    http://www.nytimes.com/2014/05/17/your-money/paying-for-college/a-beginners-guide-to-repaying-student-loans.html?hp
  • tj85016

    Posts: 4123

    May 18, 2014 7:24 PM GMT
    class%20of%202014%20student%20debt.jpg
  • tj85016

    Posts: 4123

    May 18, 2014 7:25 PM GMT
    one word: fucked

    young%20people%20earnings%20and%20studen
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    May 19, 2014 1:02 AM GMT
    Interesting guide and there are definitely options available for students to better manage their debt or at very least make monthly payments affordable.

    My college did a great job at educating students on this subject... Requiring every graduating student to partake in a seminar/workshop specifically designed to teach us about our options and strategies that best suit individual needs.

    I doubt that every school is as involved as mine was though.

    woodsmenHow many? The Department of Education does not supply much data on late payments. But the student loan expert Mark Kantrowitz, using data from lenders, estimates that between one-quarter and one-third of borrowers are late paying their first student loan bill.


    I am kind of not surprised hearing this. It took me 8 months to find a job after graduating. After six month grace period, I began paying off my student loans using my savings (which have been, and still are quite negligible).

    I bet many graduates are in similar if not worse situation, but, instead of doing something about it they ignore it in hopes of securing a job in near future.
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    May 19, 2014 4:06 AM GMT
    Step 1: Live on Ramen noodles and sleep on park benches for 10+ years.

    Step 2: Go back to college after the first year just so you won't have to keep living like that.
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    May 19, 2014 2:35 PM GMT
    When I hear baby boomers telling us how they built their lives from nothing.

    901ab.jpg
  • basnik

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    May 19, 2014 3:53 PM GMT
    thanks for starting th thread. it is so helpful to everybody
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    May 19, 2014 3:58 PM GMT
    I just wrote a check each month.
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    May 19, 2014 4:00 PM GMT
    Dallasfan824 saidI just wrote a check each month.
    Here they just take it from your account, but I bet most people never make more than the minimum payment, so they're really just paying the interest.
  • Import

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    May 19, 2014 4:42 PM GMT
    shawnathan said
    Dallasfan824 saidI just wrote a check each month.
    Here they just take it from your account, but I bet most people never make more than the minimum payment, so they're really just paying the interest.

    exactly what they do here as well. U can set it up to where the lender will automatically debit your account each month, and like u said--- minimum payments covering mostly interest and paying down very little principle setting u up for paying over decades. Never really escaping debt, enslaved.

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    May 19, 2014 4:45 PM GMT
    basnik saidthanks for starting th thread. it is so helpful to everybody
    I have been here for a year and I realize that the demographics of RJ has a lot of 20-30 somethings. Wanted to help focus on these issues.
  • Nobrand

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    May 19, 2014 5:23 PM GMT
    Folks need to realize that the first two years are best spent at a local community college which doesn't cost as much as the large colleges and universities. The Pell grant will cover most tuition cost and books, (which are best rented), found out this the hard way...After wasting a semester at a major online school, which required a student loan, then found out that most of the credits were not transferable...so I learned more than I intended too! icon_redface.gif
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    May 19, 2014 5:26 PM GMT
    There were a lot of crappy things about growing up in the 1960s and 70s but one thing was better: my full-year's tuition at a top university (U of Michigan) was $800. I was able to pay for my education out of my tips as a piano player in cheap dirty cocktail lounges.
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    May 19, 2014 5:47 PM GMT
    Many graduates are fuckups.
  • metta

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    May 19, 2014 5:49 PM GMT
    My father died when I was in my first year of college. I decided to move back home and go to a local state (cheaper) college. I worked my way through school and had $0 debt when I came out. It did take me a little bit longer to do it that way.

    I'm a little surprised that the chart is not much higher when seeing what people are paying for private colleges... $60k+/yr ($240k+ for a 4 year degree).
  • HndsmKansan

    Posts: 16311

    May 19, 2014 6:48 PM GMT
    Repaying loans is certainly critical to a decent credit rating. When a loanee gets done with school, it can seem easy to dismiss loan repayments in favor of other obligations that seem more pressing.

    Your credit rating is CRITICAL guys, for so many things in your future... car loans, a house, even getting a decent apartment may be affected by a poor credit rating. Job opportunites can be affected. As a part of being a financial advisor, I just don't focus on savings, but I talk to my clients about credit, I'm not a credit counselor, but start early... and build a decent credit scene, it will pay off.

    So repay the loans if at all possible or talk to your lender and see if terms can be negotiated.
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    May 19, 2014 8:01 PM GMT
    shawnathan saidWhen I hear baby boomers telling us how they built their lives from nothing.

    901ab.jpg


    HA!
    +1
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    May 19, 2014 8:03 PM GMT
    Sharkspeare saidThere were a lot of crappy things about growing up in the 1960s and 70s but one thing was better: my full-year's tuition at a top university (U of Michigan) was $800. I was able to pay for my education out of my tips as a piano player in cheap dirty cocktail lounges.


    Its about $15-20k a TERM now.
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    May 19, 2014 9:43 PM GMT
    'Muricaah, f yeah!

    (I hope my contribution to this discussion will help as many of you guys as possible.)
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    May 19, 2014 11:51 PM GMT
    strip
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    May 20, 2014 12:25 AM GMT
    It's also happening here in Canada. Plus, the job front for recent grads can be hit or miss.

    Typically the next step after finishing college or university would be the job, and then finding a place of your own. Even that is getting dicey, since any hopes of a downpayment to lessen one's mortgage burden can be dashed with student loan repayment and mortgage terms (at least here in Canada). And, real estate ain't getting cheap icon_neutral.gif
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    May 20, 2014 2:03 AM GMT
    Find yourself a great hacker and government document maker to provide you with brand new identities. icon_cool.gif
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    May 20, 2014 2:41 AM GMT
    Disgusting. Wish I'd gone to any European country where college is free. >_> Study abroad AND come out with no debt! Sounds good to me.
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    May 20, 2014 3:39 AM GMT
    I have no debt and just graduated with my BSc. in Communications(Journalism)
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    May 20, 2014 4:05 AM GMT
    Import said
    shawnathan said
    Dallasfan824 saidI just wrote a check each month.
    Here they just take it from your account, but I bet most people never make more than the minimum payment, so they're really just paying the interest.

    exactly what they do here as well. U can set it up to where the lender will automatically debit your account each month, and like u said--- minimum payments covering mostly interest and paying down very little principle setting u up for paying over decades. Never really escaping debt, enslaved.



    Unless parents are covering it -skillful grant writing etc... Working students aren't very common from my experience not at university level covering their expenses entirely.

    Enslaved people are easier to bully :/