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Hi, I'll probably need to borrow about $250,000 for med school. How do I minimize the amount of rape I receive?
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Dec 29, 2006 05:46
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| # ¿ Apr 28, 2024 07:40 |
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Question about repaying student loans. From what I understand, the loans I took for each semester of school are counted as seperate loans and billed / paid on their own each month. Also, that the unpaid accumulated interest from one loan does not spill over into the others. Since I qualify for IBR, any unpaid interest in excess of my minimum monthly payment is not capitalized and I don't pay interest on that interest. So is it benificial to target one loan for all my extra payments - so I can work down the principal and reduce my overall monthly interest, while allowing the rest of the loans to accumulate interest? From a numbers game, here is my current student loan balance:  $150,000 in loans, and I have a job that pays $50,000 a year. Yeah thanks Obama! I'm currently 2 weeks from graduation and still have a 6 month grace period. During this grace period, I plan to make monthly payments of ~$600-1000 into the last loan on the list "Direct Loan - Unsub 1-08", $28700 principal and $1167 accumulated interest to work off the accumulated interest and decrease the principal. Then, in 6 months, during repayment period, I can pay the miminum IBR ~$430/mo on all of my other loans to keep the interest from capitalizing, and direct all of my extra payments, probably another $400/mo towards that last loan to pay down some of the principal. Is this a solid plan?
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May 15, 2013 23:26
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6.8% fixed on all. I don't qualify for PAYE, IBR is estimated at around $450/mo. The last thing I want is this huge non-tax deductable, non-dischargable debt hanging over me for the next two decades.
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May 16, 2013 05:29
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spwrozek posted:Just add more money to your payment and make sure it goes to principle, not paying ahead. This. Only catch is you have to pay off any accrued interest before hitting the principle. Remember, only principle generates interest, so only knocking down the principle gets you a future return on your investment. If you have multiple loans (i.e. 1 for each semester), target your entire payment towards a single loan, so that you can cut through any accrued interest and take a chunk off towards principle. i.e. Loan 1: 10,000 principle + 2000 accrued interest Loan 2: 10,000 principle + 1500 accrued interest Loan 3: 10,000 principle + 1000 accrued interest Loan 4: 10,000 principle + 0 accrued interest If you have $2000 to spend, putting it all into loan 4 gets you down to 8000 principle, or a return of 6.8% annually. If you put it on Loan 3 instead, you only knock $1000 off your principle, so your return on your $2000 is 6.8% * 1000/2000 = 3.4%. If you put it all on Loan 2, you're only knocking down $500 of principle or getting a return of 6.8% * 500/2000 = 1.7%. If you just divide it evenly among all loans, you waste all the money on the accrued interest and your effective return on investment is zero.
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Aug 13, 2013 07:50
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Tesla Insanely Coil posted:Thanks for the feedback. It just feels unfair that I can't trust the student loan servicer's information unless it's something with my signature. The entire student loan industry is designed to extort as much money from you as possible and gently caress you in the rear end the second your back is turned. Trust no one.
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Aug 18, 2013 19:05
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| # ¿ Apr 28, 2024 07:40 |
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I think a double major in Japanese and Economics would be a lot better for getting a job in that sector of the industry. From what I understand, Japanese business is different enough from Western business that a deep understanding of the language, history, and culture would be crucial for success. Wouldn't want you to step on any toes by accident over there. This is assuming you're studying Japanese for business purposes not just personal enjoyment of course. Otherwise definitely major in Econ. Think about it, if you were the HR manager, would you rather hire an Econ minor or major? INTJ Mastermind fucked around with this message at 06:27 on Aug 24, 2013 |
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Aug 24, 2013 06:25
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