What’s the quickest way to pay back student loans?
Foojy asked:
My basic plan is too pay back as much as I can, as fast as I can after I graduate and hopefully knock them out within 6months - 1year. Even if I have to live with my parents and eat ramen the whole time to do it. I just really don’t want to owe money. I’ll probably have about 10k in federal loans.
My basic plan is too pay back as much as I can, as fast as I can after I graduate and hopefully knock them out within 6months - 1year. Even if I have to live with my parents and eat ramen the whole time to do it. I just really don’t want to owe money. I’ll probably have about 10k in federal loans.
My question is, can I pay it back like that? Asap, or do they require you to do drawn out monthly plans?
Tags: Asap, Money, Whole Time
December 2nd, 2009 at 3:26 am
in financial aid they have two options…..the government takes care of all your money loan or you can get a grant from the school you in. with a grant to can start paying after 6months that you have graduated and they ask you how much you want to pay a month so you don’t have to worry about that
December 4th, 2009 at 9:48 am
Yes, you can pay it like that. And that’s the best way to do it.
Having an outstanding loan is like throwing money away because if you just pay the minimum, then the interest you accrue can be as much or more than the minimum payment leaving that thing hanging over your head the rest of your life (or most of it) if you don’t make an effort to not go out and buy lots of stuff and pay the loan off instead.
December 6th, 2009 at 12:03 am
If your income fluctuates because you’re self-employed, you can also set up an income-sensitive or income-contingent repayment plan. As your income rises and falls, so does the amount you owe. Under the income-contingency plan available through the Department of Education for direct-loan borrowers, any balance remaining after 25 years is forgiven, although the amount forgiven will be taxed as income. One caveat: Alternate repayment plans will cost you more in interest because you’ll pay back your loan over a longer period of time.
December 9th, 2009 at 2:11 am
I don’t see why the loan company will not accept a fast repayment. I think 10k is easily payable in 1year. Also consider consolidation to reduce your monthly interest rate. But be careful and shop around first and ask for advice.