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Hey all, I have a student loan...well several. Unfortunat...

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Hey all, I have a student loan...well several. Unfortunat...

Hey all, I have a student loan...well several. Unfortunately, they were for way too much and now I'm in the process of paying them off. They're quite a bit. Anyone know of a way to take a big bite out of these instead of slowly paying them back. I've already taken on a 2nd job so I can focus on these. It's not that hard, but I know it'll pay off in the end. Suggestions?
Message 1 of 4
3 REPLIES
Contributor

Re: Hey all, I have a student loan...well several. Unfortunat...

I thought I read a few years back that you could consolidate your student loans. Perhaps you can give them a call and see.  Also, during the Clinton years there was talk about performing community service in liu of monatary payments. I'm not sure whatever became of that, perhaps someone on this site knows.
Message 2 of 4
Valued Contributor

Re: Hey all, I have a student loan...well several. Unfortunat...

The Clinton loan payments were if you took a job w/ Jobcorps. However if I rememer right it was only up to like 2000.
 
You don't really make much money working for Jobcorps. I would consolidate if you can.
Message 3 of 4
Valued Member

Re: Hey all, I have a student loan...well several. Unfortunat...

My two cents:
 
1)  If you consolidate, you can lock in a fixed rate that (might) be lower than the variable interest rate you are currently paying on a number of different loans. 
2) Student Loan interest is deductible on your taxes for incomes up to 50K a year (single filer) up to $2500 (per 2006 taxes).  Ergo, interest for a Student Loan is "better" than interest for a car loan or credit card, per se.
3)  There are different pay-back options for federal loans (Regular, Graduated, Extended).  Particularly with a larger, consolidated balance, you can stretch these out for up to 25 years.  You pay more in interest, but you can live a little.  And again, interest is deductible.
4) For many student loan lenders, you can decrease your interest rate by making a) consistent on-time payments over a certain period of time and b) using THEIR automatic pay system.  Know your benefit eligibilities, it'll save you money.
5) Certain occupations with certain contingencies are eligible for student loan forgiveness, eg teaching in a federally designated teacher shortage area.
6) Certain occupations/conditions are eligible  deferrments for a period of time (e.g. Peace Corps, graduate school, tax-exempt orgs, etc).  If eligible and you still want to make payments, you can pay down the overall principal without incurring interest.  I had a full time job and the company was paying for a master's degree for me.  I took 6 credit hours a semester and was able to defer my student loan interest during this period.
 
Most of this information pertains to federal student loans, regulations for private loans varies greatly.  Always contact your lender to find out what you might you qualify for. 
 
And, one more cent:  if you have any debt out there with a higher interest rate than your Student Loans, pay that off first. 
 
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