$201.73

legion · 04-13-2009, 09:59 AM

This is the remaining balance on my student loan, per the statement I got today.

It's time to pay the sucker off. 8 years and 11 months ago I graduated from college. At that point, the loan was over $12,000. I just dread calling for the payoff amount, as it was a major hassle when we paid off my wife's student loan a few years ago. It took multple phone calls to various parts of the Department of Education that had different hours in different timezones. We often got referred to people that couldn't (or wouldn't) help us. Let's hope it's better this time around.

onewhippedpuppy · 04-13-2009, 10:11 AM

Lucky SOB. I've knocked close to $20k off of mine since graduating last May, but I started with a bit over $40k.

That was throwing EVERYTHING I have at it, my wife doing some part-time accounting work, and my doing some construction side stuff on holidays and vacations. Oh yeah, and I sold a few cars.

Danimal16 · 04-13-2009, 10:14 AM

Chris,

I have found that it is almost easier these days to send them a snail mail. Saves you the time of having to get the phone tree from Hell and it also puts them on formal notice.

911Freak · 04-13-2009, 10:17 AM

[QUOTE=legion;4603801]This is the remaining balance on my student loan, per the statement I got today.

It's time to pay the sucker off. 8 years and 11 months ago I graduated from college. QUOTE]

Congrats!

onewhippedpuppy · 04-13-2009, 10:18 AM

I've paid off multiple small loans and it hasn't been difficult. Call, negotiate through the automated maze, get the total, mail a check.

legion · 04-13-2009, 10:18 AM

Yeah, I've been paying the same $150 a month steadily for years.

I think it's weird how they amortize the interest, because the payment dropped over the life of the loan. It started out at $147.57 and was around $30 before I got so far ahead with pre-payment that it went to zero. IIRC, the loans were due to be paid off originally in May of 2010, but I refinanced four years ago, which streched the payoff to 2015 or something.

Now I'm debating whether to throw the money into a savings account, my 401k, or my Roth IRA. I don't want to get used to having it. I'm leaning towards savings account as I want to finally build decent cash reserve. In the past year I've gone from always having credit-card debt to paying it off every month. I'd like to go in the other direction and actually have some emergency cash. (I have some, but not as much as I'd like.)

911Rob · 911Rob's Garage

Good News!
That's gotta feel sweet!!!

The Gubmint sent me a letter about a year after grad and said that due to my scholastic achievements they were gonna foot the bill for me. Paid them all off. I'll never forget the moment I opened that piece of mail

(top student awards; ha, ha.)

onewhippedpuppy · 04-13-2009, 10:21 AM

Personally I think you should build up a savings account cash reserve FIRST, then move on to the "real" investing. Savings account interest sucks, but the money is liquid and safe. Build up that cash nest egg, don't touch it, then start sinking money into 401k, Roth IRA, etc.

onewhippedpuppy · 04-13-2009, 10:22 AM

Quote:

Originally Posted by 911Rob

The Gubmint sent me a letter about a year after grad and said that due to my scholastic achievements they were gonna foot the bill for me. Paid them all off. I'll never forget the moment I opened that piece of mail

(top student awards; ha, ha.)

You suck.

I could have bought your 993TT (i.e. my dream car) for what I paid in student loans.

herr_oberst · 04-13-2009, 10:25 AM

I'd suggest a money market, if you can throw in some extra sheckels, better interest, and easy to get to if your money if you need it. 90 or 120 days of the ol' cash reserves is a great idea right now. THEN build up your Roth.

911Rob · 911Rob's Garage

Quote:

Originally Posted by onewhippedpuppy

You suck.

I could have bought your 993TT (i.e. my dream car) for what I paid in student loans.

Ha, Ha Matt.
Story of my life buddy

I was (still am) a perfectionist in college. Paid off in the end. Didn't have a clue until I opened that letter. Too bad I didn't borrow more? Ha!

Tishabet · 04-13-2009, 10:32 AM

Graduated in '02 with $17k in loans, and the end is finally in site. Cannot imagine being in the position of some of the folks who graduate with $100k+.

legion · 10:48 AM

Quote:

Originally Posted by Tishabet

Graduated in '02 with $17k in loans, and the end is finally in site. Cannot imagine being in the position of some of the folks who graduate with $100k+.

My sister's best friend graduated with around $96,000 in student loan debt. After switching majors severals times while at Columbia, he finally graduated with a degree in film after seven years.

He fell off the grid. He sublets his apartment and he works for cash as a mover (among other odd jobs). He paid his student loan for the first few months at something like $1,200 a month and said screw it and restructured his life so he couldn't be found to repay.

pwd72s · 04-13-2009, 10:43 AM

Quote:

Originally Posted by legion

This is the remaining balance on my student loan, per the statement I got today.

It's time to pay the sucker off. 8 years and 11 months ago I graduated from college. At that point, the loan was over $12,000. I just dread calling for the payoff amount, as it was a major hassle when we paid off my wife's student loan a few years ago. It took multple phone calls to various parts of the Department of Education that had different hours in different timezones. We often got referred to people that couldn't (or wouldn't) help us. Let's hope it's better this time around.

That's funny...Cindy & I had the same problem when we wanted to pay off our house. The very same bank branch that gave us the loan, and getting them to state a firm payoff amount was like pulling teeth!

onewhippedpuppy · 04-13-2009, 10:54 AM

Quote:

Originally Posted by 911Rob

Ha, Ha Matt.
Story of my life buddy

I was (still am) a perfectionist in college. Paid off in the end. Didn't have a clue until I opened that letter. Too bad I didn't borrow more? Ha!

I went to college in my mid-20s with a wife and two kids. Working full time while also a full time student getting an engineering degree, 4.0 wasn't happening. I suppose I could have just chosen to not see my kids for 4 years, but in the grand scheme grades aren't all that important. Just that lovely piece of paper.

911Rob · 911Rob's Garage

I agree Matt, but excuses are a dime a dozen buddy.
I had a wife and one kid at the time

It wasn't about the grades; it was about "positioning" with the instructors. I simply did not accept their methods of stereo typing students with grades. One instructor defined me as..."Oh yeah, McKibbon, you give him a 99% grade and he's still not happy" By my 2nd year my name was branded as top student.

One of my secrets was an after hours teaching class I hosted for my fellow classmates. If you want to learn something really well, teach it.

Lots of stories and life lessons learned.
30 years later, not much has changed

legion · 04-13-2009, 11:06 AM

I got a 3.8 almost every semester: Four A's and one B. There was usually one class every semester that I'd have to double my study time for that class to get from a B to an A. As I was working part time (20 hours a week) all through college, was a double-major, and needed to spend some time decompressing and having fun (MUCH less than my friends). I usually decided that wasn't worth it as I'd have to cut out all fun time and start cutting into sleep time...

red-beard · red-beard's Garage

Quote:

Originally Posted by legion

Yeah, I've been paying the same $150 a month steadily for years.

I think it's weird how they amortize the interest, because the payment dropped over the life of the loan. It started out at $147.57 and was around $30 before I got so far ahead with pre-payment that it went to zero. IIRC, the loans were due to be paid off originally in May of 2010, but I refinanced four years ago, which streched the payoff to 2015 or something.

Now I'm debating whether to throw the money into a savings account, my 401k, or my Roth IRA. I don't want to get used to having it. I'm leaning towards savings account as I want to finally build decent cash reserve. In the past year I've gone from always having credit-card debt to paying it off every month. I'd like to go in the other direction and actually have some emergency cash. (I have some, but not as much as I'd like.)

Inflation protected treasury mutual fund

Man, that's a mouthful!

You won't find anything that is this liquid that will produce this return and be accessible in a couple of days.

onewhippedpuppy · 04-13-2009, 11:18 AM

Quote:

Originally Posted by 911Rob

I agree Matt, but excuses are a dime a dozen buddy.
I had a wife and one kid at the time

It wasn't about the grades; it was about "positioning" with the instructors. I simply did not accept their methods of stereo typing students with grades. One instructor defined me as..."Oh yeah, McKibbon, you give him a 99% grade and he's still not happy" By my 2nd year my name was branded as top student.

One of my secrets was an after hours teaching class I hosted for my fellow classmates. If you want to learn something really well, teach it.

Lots of stories and life lessons learned.
30 years later, not much has changed

No excuses here, I worked my ass off. Quite frankly, a 4.0 was not my top priority. In engineering you either get the right answer or the wrong answer. Not much "positioning" you can really do. In hindsight I don't regret a thing, in my current job and the others I was offered there wasn't a single conversation in regards to my GPA. While others didn't work so they could focus on that 4.0, I had an internship that has been invaluable to my career. Most of the people that work for me probably had better grades in school than I did.

However, your approach is part of the reason I had an A in all of my business classes. Plus they were easy.

competentone · 04-13-2009, 12:15 PM

Quote:

Originally Posted by legion

My sister's best friend graduated with around $96,000 in student loan debt. After switching majors severals times while at Columbia, he finally graduated with a degree in film after seven years.

He fell off the grid. He sublets his apartment and he works for cash as a mover (among other odd jobs). He paid his student loan for the first few months at something like $1,200 a month and said screw it and restructured his life so he couldn't be found to repay.

I wonder if he is planning on trying to stay "off the grid" for the rest of his life?

There may be more bailouts to forgive the loans made to "losers" like him, or inflation may help to eliminate what he owes (if he has a fixed interest rate), but that loan will never "go away."

If he tries to get back "on the grid" 20 years from now, the loan will be there waiting for him.

Personally, I hope he has a variable interest rate!