@Anonymous wrote:
@BluePoodle wrote:
@CreditCuriousity wrote:I will die with my SL's... No one they can collect from, other than I guess my estate before iit goes to whomever is in line first and still alive. I have no desire to pay down at 3.x percent loan in a fast amount of time.. I f I wanted to buckle down for 2 years could pay it off, but meh as stated why at such a good rate
They die with you. No one is responsible for SL's unless they are private loans that someone else co-signed for. That being said, I agree that if you have other things to do with your cash then paying off 3% loans is not really a priority. But she is also putting away $ in savings. Most of her student loans are also 3 to 3.5%. She does have one that is 4% and I think another close to 6%. We are going to pay off smallest first and use snowball effect and not worry about % so much.
I expect her to get married in the next year and I know they are talking about buying a house so haveing less in loans gives them a larger budget for mortgage if they want to do that.
Actually, although I wish that was the case for all states in the US, I don't think it is. For example, community property states, a spouse is responsible equally or equitablly for debts even if they are not cosigned or attached in any way, afaik...
http://www.creditcards.com/credit-card-news/map-community-property-laws-by-state-1282.php
also:
"But in addition, debts incurred by you or your spouse during your marriage (regardless of whose name is on it) are generally deemed to be community debts and both spouses are considered equally liable. This means that even if the credit card debt was incurred by your spouse alone, you may be on the hook for it. However, keep in mind that debts incurred by your spouse prior to marriage or after separation or divorce are not community debts.
Also, each state weighs different factors and may have additional rules regarding when an obligation is considered a community debt. Usually, if the debt was incurred for something that benefited your marriage, it will likely be deemed a community debt. But if it was a purchase that only benefited your spouse, there is a greater likelihood that it will not be considered a community debt.
Currently, the following states follow community property rules: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In Alaska, married couples can agree to treat their property as community property."
I will say that since this post borders on credit scoring, and as someone with multiple student loans still reporting, I had a decent boost (15-30+ points dont remember) from adding a new installment loan last summer. I don't have car loans on my reports anymore either.
As far as I can see its fine...sounds like she has enough accounts to not ding her for total utilization. I've done it, but never more than 30-40 util on a card for a car, and went in with a plan, which you have...Her utilization will heal if it you do see a dip..but at that age it is making me wonder. I would hope at her age that the car purchase didn't go over half of her limit. Hoping it didn't max out the card. If it did, so be it, but its with barclays, a box of chocolates....
Regarding the repayment of the student loans, when you say we, do you mean her paying, but really its your plan? If you mean mutual paying or you... Save your money. Put it in a high yield checking account. Help them out with home searching and maybe the downpayment. She is, afterall, an engineer, and surely will be able to handle paying them on her own, with your great plan. Easy and simple always wins the race with student loans if you can stick to it. Kudos for not caving in to consolidating!
All of her student loans are Federal, which would be discharged at the time of the borrowers death. I realize other types of loans may not be the case. And they might also depend on if the loan was taken out when the borrower was married too as well a state of residency.
Her Barclay CL is $6,200 so she is over 50% and it will be interesting to see how it effects her score. But it will be short term.
The payment plan for her Student loans or any debt is her plan....after 4 years of college of me suggesting that her first year out she live at home and work to pay off as much as possible in her debt before she moves out on her own. Since she and i are very close and she actually loves being at home after over four years of living in another state than me while at college, she doesn't have a problem with it.
I have no intention of paying on her student loans it is her debt and I have paid more than my share of her education throughout her life since she has always attended private school even for college. This is her bill and she has a plan to pay it with a career that will afford her to do so. Just as the car is now her debt and she will be paying for it.
There may be better ways of paying if off slowly and investing, etc but those are not our ways. The debt is relatively small compared to many who graduate from college, only $29K. For an engineering degree that is small and she only has an under grad. She may decide to go to grad school as some point and having her student loan paid off would be nice if she decides to do so.