Does anyone know if they've changed any laws concerning student loans? My wife has been burdened by one for several years now, has already consolidated and can't find a way to refinance it at a lower interest. Thanks for any suggestions. Paul F B
Hi victory tea (that'll be a "retirement" tea in 2085??
What kind of rate is she paying?
What kind of credit history?
Is there a credit union locally for membership in which you might be eligible, or are you members of one now?
Paul, I don't know what kind of rate she is paying, but most student loans are pretty low. I know it probably doesn't help, but it took me almost 12 years to pay all of mine off. It may feel like a burden now, but what would the options be if she didn't have the education?
I focused on not having other debts during that time. Only drove cars I could afford to pay cash for. Didn't create any credit card debt. It is really the loan or other debts causing such a problem? Tell her to just keep chipping away at it. I did have friends who did a home refinance while rates were down since that was lower interest than the loan on the education.
The loan is 8%, her credit hx is impeccable. Doesn't seem like the principal is going down. It's a 20 yr. loan.
In 2085 I'll be 139 yrs. old, so my retirement should be substantial.
I liked what you said, also, Gloria. Paul F B
My husband and I are in the same boat. We both graduated 7 yrs ago and had 2 loans each. We are both down to 1 loan each. Just last month both our loans went from about 4% to 8%. GRRR! We do get to declare the interest paid on our taxes but 8% is a bit higher than we are used too.
The only thing I could think of is the things that Gloria mentioned and that we are also just chipping away at it slowly. Alot of my friends have paid theirs off already but they had less of a loan and only one person (husband or wife) had loans so it was half the amount as us.
Hey, at least I know other people are in the same boat now. I feel like ours will never be paid off. However I know that I wouldn't be where I am today if I didn't have those loans! We could pay off one of our loans but then we would have no savings and we feel that a "rainy day" savings is far more important than being loan free.
Sorry if I was somewhat abrupt.
If you think in some non-traditional ways, would it be possible to find a loan at a lower rate of interest?
Some credit unions offer reduced rates to straightforward but not affluent people, e.g. students (or recent graduates), with good prospects.
Good wishes as you seek ways to make this situation work best for you.
ole joyful (about 159 in 2085)
An option that may work for some:
If you own a home, you could refinance at a lower rate, take out cash from the equity in the home, and then pay off the student loan. This way, you get a lower rate (if you can find one) and still get to deduct the interest off your taxes.
Here's a funny from my past. I borrowed a massive $5K at 9%. I will probably remember the payment amounts until I keel over ($51.15 and $51.90/mo.). I rounded the payments up to $60 for each. As I recall, I paid the balance off about a year early. Is there any way you can "round up" the monthly payment?
This was what really rammed home the lesson of paying to principal for me. It always seems so overwhelming, but if you simply keep your head down and keeping pulling into the collar you'll get there. The best day is when you begin to see the amount of the payment go more to principal than interest.
Thanks for all the suggestions. Seems like home equity loans are about to drop once again, so that is a possibility. I know at one time some graduates were working on a law change so that a student could seek lower student loan percentages, despite previous consolidation- must have fell by the wayside. Lastly,
Ole Joyful, I never perceived your remarks as being abrupt and ,even if I did, at your age you certainly have the right to abruptness as well as many other rights us mere 60 y.o.s have yet to earn. I say this with true respect and there is no sarcasm intended. Paul F B