topic Re: $220,000 in student loan debt in General Credit Topics

$220,000 in student loan debt

Anonymous — Thu, 12 Jun 2008 03:34:01 GMT

So, I have about 220K in student loan debt, variously consolidated and not, from 4%-7.5%, which obviously shows on my CR as "installment." I have several CC's: Credit Union, (2000/9000) Chase Visa Signature $0 (I know), a Key Bank Mastercard 2000/9000 (Citi), B of A x 2 (3500/5000 and about to BT 2000/5000), Discover (6500), AmEx Green, and just changed Amex Delta to Blue Cash. I also have some 'sub-prine' ones which will be paid off soon: HSBC/Discover ($0), Juniper ($1500), and CapOne ($600). I have an unsecured LOC at $25,000 which reports as a credit card. Besides the obvious (paying down the balances to decrease util), is there anything else I need to do to off-set the student loan debt? Should I just open more TLs to make the util look better? Or chill ? I have some old (over 4 year) lates, and a few new accounts, but nothing terrible on my CR. I know the high revolving debt is killing me (but it's all been moved to low interest), I just can't pay it all off at once. I just opened the AmEx green and made the Blue product change. I'm tempted to app for the Hilton card, since I stay there all the time, but I'm afraid to spook AmEx (the BT to B of A wil bring my balance there to zero).

Re: $220,000 in student loan debt

Anonymous — Thu, 12 Jun 2008 04:43:02 GMT

If your concerned about your scores-

Quit apping and take that world class education and pay that debt off-

Re: $220,000 in student loan debt

Anonymous — Thu, 12 Jun 2008 04:55:17 GMT

The Student loan debt $ amount means little to FICO unless you are late (Even though this is MORE than I owe on my house)

Re: $220,000 in student loan debt

Anonymous — Thu, 12 Jun 2008 05:00:24 GMT

First off...what are your scores?

Don't be concerned with your Installment debt. It is looked at differently then revolving and doesn't hurt near as much.

Pay down the revolving credit cards and yes, stop applying for more credit.

Pay on time every time and let time take its course.

"Chase Visa Signature $0 (I know)" What does this mean?

Re: $220,000 in student loan debt

MattH — Thu, 12 Jun 2008 10:10:33 GMT

Ouch, that's over twice the balance on my mortgage! If you can stand to continue living like a student for a few years before enjoying the well-earned fruits of your education then you could pay it down surprisingly quickly with frugality.

Re: $220,000 in student loan debt

fishbjc — Thu, 12 Jun 2008 13:12:12 GMT

Do NOT be late on those student loans...ever.

Stop apping.

You should be fine, those student loans aren't giving you too much fico grief.

Congratulations on furthering your education!

Re: $220,000 in student loan debt

Anonymous — Thu, 12 Jun 2008 14:46:43 GMT

For all of you who find this amount shocking; it was medical school, and not an expensive one. What it got me was a job taking care of kids with disabilities making $86,000.

Re: $220,000 in student loan debt

Anonymous — Thu, 12 Jun 2008 15:30:04 GMT

@Anonymous wrote:
For all of you who find this amount shocking; it was medical school, and not an expensive one. What it got me was a job taking care of kids with disabilities making $86,000.

Don't take everyone's shocked reaction to your SL as an insult. I think it's more indicative of shock at how much a good education costs nowadays!!!

(For DH, two years of private/military school, 2 years of U/G and 4 years of G, we've taken out about $50K!! ... so you see what I mean about the "nowadays" remark!)

Also, you seem to be the anomaly here ... most SLs that posters describe are in the area of $40K!!

I think you'd incur the same level of shock over at the mortgage forums if you posted that you have a $600,000 mortgage!!

Re: $220,000 in student loan debt

Anonymous — Thu, 12 Jun 2008 17:37:14 GMT

Funny, I can't afford a mortgage.

Re: $220,000 in student loan debt

haulingthescoreup — Thu, 12 Jun 2008 17:55:03 GMT

My older daughter is headed to med school and will probably graduate with a quarter million dollars' worth of debt, not counting a year in between years 3 and 4 to go elsewhere for an MPH. She plans to go into global public health, which isn't exactly a big-bucks field either. Kudos to both of you for going into areas really needing help, as opposed to giving Botox injections or something.

Good luck, and anyway, as the others said, concentrate on the revolving debt and just be sure to keep current with the student loans. They seem to be in a special category, even within installment debt, and they probably aren't having that much affect on your scores, odd as that sounds. The main thing that anyone can do over time for their credit is to remain squeaky clean in terms of timely payments, and be judicious in acquiring additional credit. Be really choosy when looking at new credit, as in "Do I want to see this thing on my credit reports for the next ten-plus years?"

If you have time, you might want to read the High-Achievers thread in my siggy. For young people (I'm 53 --everyone's young!), it can get you thinking about where you want to be over time.

Re: $220,000 in student loan debt

Anonymous — Thu, 12 Jun 2008 17:59:32 GMT

Thanks. I'm not all that young. I went to medical school when I was almost 30, and had two kids already, which is how I ended up almost forty with a negative net worth and 13 years of higher education : )

Re: $220,000 in student loan debt

Anonymous — Thu, 12 Jun 2008 18:13:39 GMT

@Anonymous wrote:
Thanks. I'm not all that young. I went to medical school when I was almost 30, and had two kids already, which is how I ended up almost forty with a negative net worth and 13 years of higher education : )

Wow!! Then you REALLY get a pat on the back!!!

Hubby's had several potential employers offer to send him back for his PhD and he's refused every one!! He already did 6 years and wouldn't do another single year if you paid him a gazillion dollars!!

Of course, I think that's because due to being in the gov, he has training durn nigh every month. A couple of months ago, it was training on how to dispose of lead paint chips. Irony: Paint chips, lead or not, have absolutely NOTHING to do with his job!! He's a Program Manager!! He either spends his time in meetings or coordinating testing!!!

Re: $220,000 in student loan debt

MidnightVoice — Thu, 12 Jun 2008 18:40:41 GMT

haulingthescoreup wrote:

If you have time, you might want to read the High-Achievers thread in my siggy. For young people (I'm 53 --everyone's young!), it can get you thinking about where you want to be over time.

Oh to be 53 again!!

Re: $220,000 in student loan debt

MattH — Thu, 12 Jun 2008 19:27:50 GMT

MidnightVoice wrote:...Oh to be 53 again!!

http://en.wikipedia.org/wiki/Oliver_Wendell_Holmes,_Jr.

Holmes, in his last years, was walking down Pennsylvania Avenue with a friend, when a pretty girl passed. Holmes turned to look after her. Having done so, he sighed and said to his friend, "Ah, George, what wouldn't I give to be seventy-five again?"

Re: $220,000 in student loan debt

haulingthescoreup — Thu, 12 Jun 2008 22:38:52 GMT

@MidnightVoice wrote:

@haulingthescoreup wrote:

If you have time, you might want to read the High-Achievers thread in my siggy. For young people (I'm 53 --everyone's young!), it can get you thinking about where you want to be over time.
Oh to be 53 again!!

53 = young enough to want to, and old enough to know better.

I am referring to applying for new credit, of course.

Re: $220,000 in student loan debt

MidnightVoice — Thu, 12 Jun 2008 23:29:09 GMT

haulingthescoreup wrote:

53 = young enough to want to, and old enough to know better.

I am referring to applying for new credit, of course.

I am not as good as I once was, but I am good once as I ever was

Re: $220,000 in student loan debt

Anonymous — Thu, 12 Jun 2008 23:36:31 GMT

Yea I thought med school was only $120k Yikes. I guess you take all those years of interest and it adds up a lot more.

Re: $220,000 in student loan debt

Anonymous — Thu, 12 Jun 2008 23:54:01 GMT

Well, when your first student loan was in 1989...plus they don't tell you that you have to take three licensing exams ($300), three board exams ($7000), pay state licensing fees ($$$), maintain memership in professional organizations, and defer your loan payments but accrue interest during all the years of residency while you are working 80 hours a week but only making $40K.

Re: $220,000 in student loan debt

haulingthescoreup — Fri, 13 Jun 2008 00:08:36 GMT

From DD#1's financial aid offer:

Class 2012

My sincere congratulations on your acceptance to Albert Einstein College of Medicine. We are pleased to offer you the following financial aid to assist you in defraying your educational expenses.

Fall Semester 2008 / Spring Semester 2009 // Academic Year 2008-09

Tuition $21,182 / $21,182 // $42,364
Fees $1,208 / $1,208 // $2,416
Total $22,390 / $22,390 // $44,780

Financial Assistance
* * * * * *

Stafford Loan Requested
Subsidized $4,250 / $4,250 // $8,500
Unsubsidized $19,333.50 / $19,333.50 // $38,667
Total $23,583.50 / $23,583.50 // $47,167

total award: $59,480 (more than needed, but you get the idea)

edit: forgot to add, but the housing is insanely cheap! ~$2500/ year. Good luck finding that anywhere else in the Bronx!

Message Edited by haulingthescoreup on 06-12-2008 05:08 PM

Re: $220,000 in student loan debt

Anonymous — Fri, 13 Jun 2008 00:37:49 GMT

It's hilarious that it's called an award. Congratulations, by the time you're finished with your grueling training, it will have cost you over $250,000, and yet people will sneer at you and insist that you must be rich. My loans will be paid after I am eligible for Social Security-I'm thinking of trying to get a discount by having Socialy security send the direct deposit over to Sallie Mae.

I'm really not this bitter. I love my job and my patients, but I don't think people realize what a sacrifice it takes, and then physicians are so dogged in society. It's kind of disheartening. But don't tell your daughter that. I'm hoping for change.

But tell her I said strong work on Albert Einstein; she'll get an awesome medical and cultural education. WTG.

Message Edited by holuh3 on 06-12-2008 05:37 PM