How Would You Service a $140k Student Loan Debt?

23 posts / 0 new
Last post
just another pe...
just another perl hacker's picture
Offline
Joined: 06/21/2011
Hat Tips: 12
Posts: 8
How Would You Service a $140k Student Loan Debt?

just as the title states, how would you service a $140k student loan debt?

1) pay interest and principle aggressively to retire the debt obligation.
2) pay interest only and carry the principle debt until my death or the death of the dollar; whichever comes first

3) ?

i have no other debt, aside from these [unsecured] student loans.

for the past year or so, ive been paying interest only viewing this position as my ultimate dollar short...

comments, insults, feedback, advice all appreciated.

Edited by admin on 11/08/2014 - 06:06
just another pe...
just another perl hacker's picture
Offline
Joined: 06/21/2011
Hat Tips: 12
Posts: 8
so i guess im the only

so i guess im the only asshole that debt financed my edu. or, mods pls move if its in the wrong forum. =/

jrobb316
jrobb316's picture
Offline
Joined: 06/15/2011
Hat Tips: 932
Posts: 86
The forums seems to have died

The forums seems to have died lately, i don't know if many read them regularly like when they were new... honestly I don't know what what to say.  140K is more than my house and thats like 700 a month without escrow.  I guess I would pay the minimums because the interest on student loans is tax deductible so at least you have that going for you.  If you are able to get some awsome job I would try and pay it off faster.  I had a student loan, granted it was only a small fraction of that, and it took me 8 years to pay it off.  Good luck

saigongold
saigongold's picture
Offline
Joined: 06/27/2011
Hat Tips: 517
Posts: 46
Thats a massive loan to have

Thats a massive loan to have after university, man that works out at around 90kGBP wow!

How did you manage that or is that normal for USA?

Get a job and get the best deal you can elsewhere and get it paid off asap or leave and work abroad. Just pay the interest til you decide and get yourself some physical PM's because with that sort o debt you dont want fiat lying around in any banks for creditors to see!

SilverFocker
SilverFocker's picture
Offline
Joined: 06/14/2011
Hat Tips: 2577
Posts: 297
There really is no answer

to your question that will solve your problem. I just hope that 140K was worth the education in that, it will translate into a job with the pay which will allow you to justify and pay that amount.

Student loan debt has morphed into a crazy retarded mess for anyone wanting a education. The PTB has made the loans almost automatic that it has become a worse situation than the Sub-Prime mortgage mess, with the exception that SL's are forever........you may have highlighted the unsecured loan part , but you will never shake the obligation other than a complete pay off. 

How fast you choose to do that is up to you. Good Luck.

just another pe...
just another perl hacker's picture
Offline
Joined: 06/21/2011
Hat Tips: 12
Posts: 8
heres how you get there from

heres how you get there from here.

1. debt finance undergrad at private school.

2. after graduation, work and defer loans as interest piles up. =/

3. when deferment runs out, go back to a private university and debt finance the tuition. undergrad loans continue to compound.

4. after grad school, defer the loan bundle another two years.

5. time runs out.. $900 monthly min payments.

fortunately, i have what i consider to be a kick ass job and can allocate 1300$ monthly to service this debt.. with the wind of a collapsing dollar in my sails, i could have this paid off in 8-10 yrs or so.

and to a previous reply, i am unable to deduct the interest portion of my payment. =/

doing it again, i would have gone to public schools and paid cash.. it would have been worth had i paid less and in cash; which i probably could have done. =/ 20/20
 

tmosley
tmosley's picture
Offline
Joined: 06/14/2011
Hat Tips: 14948
Posts: 1674
Flee to another country and

Flee to another country and never return to the US.

This is what I would do now if I hadn't put down roots.

JP McManus
JP McManus's picture
Offline
Joined: 06/16/2011
Hat Tips: 57
Posts: 17
Here's an option

Deeeeeeeee-fault.  And get a new identity. 

kemp
kemp's picture
Offline
Joined: 06/19/2011
Hat Tips: 552
Posts: 52
Haha, I love some of these

Haha, I love some of these answers here.

Well since you aren't Greece a default is not likely in your future. Also, nothing you can do will cause your obligation for this loan to go away, not even bankruptcy so my advice is to put as much as you can comfortably towards the principal. From your description of how the debt accumulated you are plainly aware that putting it off ends up costing more and more over time being aggressive in the payoff would be my advice.

Your plan sounds like a prudent one.

Green Lantern
Green Lantern's picture
Offline
Joined: 06/15/2011
Hat Tips: 34221
Posts: 3771
There are alot of unanswered

There are alot of unanswered questions in America's future.  Will the bank you took the loan from go insolvent?  Will the dollar collapse making the money they gave you worthless?    Can you pay off your loan at $1300 per month and have money to participate in the gold bull market?  I would want to maximize my money making capabilities in the bull market and thus I might pay the minimum for awhile.   

Check out these video's by James Martinez.  I haven't viewed them in awhile.  If I remember correcdtly, he coaches people to fight with the banks and not pay back their debt understanding they will not be able to ever use a credit card again.    We might have a future where nobody takes a loan for school or a house and you'll be buying property, farms, houses, cars and boats for pennies in a hyperinflationary situation wtih gold coins. 

http://youtu.be/_2ZLOvYccs

__________________

Green Lantern
Green Lantern's picture
Offline
Joined: 06/15/2011
Hat Tips: 34221
Posts: 3771
for whatever reason, I've

for whatever reason, I've trouble with the copy/paste function with this site.  Reposting the videos

__________________

dollyhansen
dollyhansen's picture
Offline
Joined: 10/18/2011
Posts: 1
Discussion about debt,

Discussion about debt, bankruptcy, loan, student loan,  and other money matters is indeed a very serious one. It must also involve the advice and help of a legal council. In 1980, brand new rules for municipal bankruptcy were submitted. Since then, 243 specific cities have filed for the security. Harrisburg PA started filing for bankruptcy protection this week. In the courtroom, the mayor of Harrisburg has filed a demand that the bankruptcy be declared unlawful. The fight over the filing is sure to continue for at least a couple weeks. I have heard of this news. Harrisburg Mayor says bankruptcy filing is not legal, his view may earn a lot of comments, reactions, or even violent reactions from the public.
 

just another pe...
just another perl hacker's picture
Offline
Joined: 06/21/2011
Hat Tips: 12
Posts: 8
thanks all for your replies..

edit.. double posted same msg. =/ 

just another pe...
just another perl hacker's picture
Offline
Joined: 06/21/2011
Hat Tips: 12
Posts: 8
thanks all for your replies..

thanks all for your replies.. i think ill take green lanterns advice and service the interest for a while until im comfortable with the size of my PM stack... 

after which ill revert back to a more aggressive principal payment schedule...

or, perhaps ill debt finance a post-grad degree and defer pmts for another 4 years.. j/k ;)

asymptote
asymptote's picture
Offline
Joined: 06/16/2011
Hat Tips: 395
Posts: 48
I think the answer is Sydney,

I think the answer is Sydney, Australia... lol

Since the USD is around parity, this might give you an idea o how much you an make down here:

www.seek.com.au

Sydney is about as close to the US is you are going to get unless you like ice. :)

CreditCrumbs
CreditCrumbs's picture
Offline
Joined: 07/18/2011
Hat Tips: 2435
Posts: 356
My advise

just another pe...

student loan is not dischargeable at bankruptcy, so I would treat it very conservatively. Time-tested advise from Proverbs 6:1-5 below:

 1 My son, if you have put up security for your neighbor, 

   if you have shaken hands in pledge for a stranger, 
2 you have been trapped by what you said, 
   ensnared by the words of your mouth. 
3 So do this, my son, to free yourself, 
   since you have fallen into your neighbor’s hands: 
Go—to the point of exhaustion—[a] 
   and give your neighbor no rest! 
4 Allow no sleep to your eyes, 
   no slumber to your eyelids. 
5 Free yourself, like a gazelle from the hand of the hunter, 
   like a bird from the snare of the fowler.
 
Eternal Student
Eternal Student's picture
Offline
Joined: 06/14/2011
Hat Tips: 2162
Posts: 86
My two bits

There's a lot to be said to moving to another Country. But don't flee; go there by taking charge of your life and what you want to do.

But that option isn't desireable for many, especially if you have a well paying job. So for me, personally, I'd be accumulating as much reserves as possible. That means paying the interest only, and be absolutely certain you socked the rest away. Most people fail to do this, and let the money burn a hole in their pockets.

Credit is imploding, and this destruction is about to get much worse with Europe's debt crisis. That cash on hand will offer you the ultimate flexibility. After that, inflation is going to kick in, and the cost of paying off the loan will be much more affordable. But we're talking about years here.

So I would store up as much cash as possible, if I were in your position. That will help you survive a job loss, or even fund moving to another Country. And be sure to stay out of any other debt if at all possible, as servicing that debt will eat up even more of your cash on hand.

For a specific goal, I'd target looking at saving a years' worth of expenses, before looking at doing anything else.

NCdirtdigger
NCdirtdigger's picture
Offline
Joined: 06/15/2011
Hat Tips: 85
Posts: 29
drag it out as long as possible

Buy PMs, pay interest, maybe a little principal occasionally to show good faith. Wait for devaluation of the dollar to pay the bank back with some pieces of nearly worthless FRNs at a later date. F@@@ 'em!

lilbromarky1
lilbromarky1's picture
Offline
Joined: 06/15/2011
Hat Tips: 2464
Posts: 292
jrobb316 wrote: The forums

jrobb316 wrote:

The forums seems to have died lately, i don't know if many read them regularly like when they were new... honestly I don't know what what to say.  140K is more than my house and thats like 700 a month without escrow.  I guess I would pay the minimums because the interest on student loans is tax deductible so at least you have that going for you.  If you are able to get some awsome job I would try and pay it off faster.  I had a student loan, granted it was only a small fraction of that, and it took me 8 years to pay it off.  Good luck

The forums got slow because everyone is crazy about posting in turds daily blog comments section.  That is also where you seem to earn the "easiest" hat tips.  So its like a self perpetuating situation.

The only thing I can see that would resolve would be if Turd started posting in the forums.   People will naturally follow him wherever he goes on this site.

__________________

Like my ideas? Check our blog at: http://backtobasicseconomics.blogspot.com/

Poor Boy
Poor Boy's picture
Offline
Joined: 06/15/2011
Hat Tips: 70
Posts: 56
Sorry, but there is no

Sorry, but there is no ethical escape from the obligation and I'm sure that you agree otherwise, why ask the question.

You took the money, spent it and agreed to pay it back with interest.

I also think that Kemp has offered you the best advice. 

rock collector
rock collector's picture
Offline
Joined: 06/14/2011
Hat Tips: 2216
Posts: 178
$140,000 Student Loan

I agree with Poor Boy. You borrowed the $$, you exchanged it for something of value (not everyone does) and it's ethical for you to be paying it back. 
The problem with "interest only" payments is that the total cost of the loan goes up every month by whatever that payment is.  Assuming that you cannot print money in your basement, this is a negative.
Also, I think it was said that the student loan cannot be deducted from income for your taxes. That's 2 big reasons not to let this loan go any longer than necessary. (From the lender's point of view, he would probably love for the interest payments to go on forever).
The minimum payment may include a portion towards principal. In any case, it makes sense to plot out a course (number of years to pay it off) that poses no undue burden and where the loan principal is significantly reduced over time. 
And the loan balance still might be inflated away if hyperinflation does appear down the road and your income can mostly keep up.
Just my 2 cents. Good luck.

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Topic locked
Syndicate contentComments for "How Would You Service a $140k Student Loan Debt?"