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Old 11-15-2010, 11:11 PM
SixSeventyOne SixSeventyOne is offline
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Join Date: Nov 2010
Location: New York, USA
Posts: 3
Default Huge student loan payments ... Am I looking at it the right way?

This is my story: I come from a poor family. I have had a knack for computer stuff but never really considered college until I was brainwashed into thinking I'd make $70,000 a year. Of course, when you tell a 16 year old he can make that much money by going to college he'll do it! My family was right in that zone ... too "rich" for financial aid but not enough money to send me to college.

I ended up taking on $45000 in student loans for a SUNY degree (4 year). Wonderful, isn't it? On top of that, I'm only making $35k a year, bringing home $500 a week after absurd NYS taxes and health "benefits"

The monthly payment are starting next month, they will be $530. I have many small loans that only have 10 years to be paid off. Everyone says REFINANCE ... while it would help in the short run, I can see it only hurting me. As it is, if I take what I have out the entire 10 years I'll be paying $16k in interest. Stretch that out even longer ... absolutely not.

I absolutely, positively hate HATE this area where I live. I NEED to get out of here. It's just such a depressing place. Unemployment is somewhere around 200% and taxes are above 300%. Though, I hear the next county over is trying to raie sales tax to 500%!

There's more money to be made elsewhere but I can't move until I pay off these loans, which requires more money, which requires me to move ... See where I'm headed?

So ... This is an estimate of what I'm looking at ... bear in mind, this is split up among 10 or so small loans
11K @ 6.8
11K @ 6.3
11K @ 5.0
11k@ 3.25

I had to buy a vehicle. It was a $6,000 vehicle that I paid CASH for. No more debt. Right choice? I think so! Repairs / Maintenance / etc are done in my driveway by me.

There is no frugality about me. I'm just downright cheap. That's good as well, right? My expenses are around $700 a month (Rent/Gas/Insurance).

My Plan
Hopefully by April, I can have $15000 in the bank saved up to pay off the $10,000 @ 6.8. That would eliminate around $125 a month. Help me be a bit more free. Then the extra will be going into savings. It won't be much extra a year but it will help.

What should I do? Should I bite the bullet and refinance or deal with a few years of H----- around here and get rid of these?
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Old 11-16-2010, 02:20 PM
cjscully cjscully is offline
Join Date: Oct 2010
Location: California USA
Posts: 90
Default Re: Huge student loan payments ... Am I looking at it the right way?

Whether or not you should refinance depends on the rate and fees charged to refinance. For example, if you could refinance all of your loans at the 3.25 rate you are in better shape because your minimum monthly loan payment goes down. If you them made the same monthly payments you're making now and put the overage to principal your loans would be paid off much faster than if you leave them alone.
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