Hi. Like most people, I didn't have money saved for college and it took me until the end of my college experience to actually start paying back my student loans. I graduated with about $64,000 in student loan debt. Ouch! Is the appropriate term. I would advise anyone who is looking to get a college education to not make a costly decision as I did. Here's why; not only is that an insane amount of debt but student loan debt whether it's through the department of education or a Federal Perkins loan provided through the school - it accrues interest. Starting at 2.75% ranging all the way up to 5% if it's a Federal Perkins loan.
When it's all said in done because of interest a borrower may end up paying an additional $20,000-$30,000 in interest (interest - Debt accrued on top of debt for a duration of money lent) in addition to the original $64,000 taken out in student loan debt. Interest is and will always be an enemy of mine
. I don't want you to be in bondage to it either. It's a huge detriment to paying back any type of loan. It basically works against you diminishing the hard earn money that you've scheduled to go towards the principal. There's usually some type of interest whenever you borrow money. Which makes sense from a lender's standpoint. The risk of not being paid and the generosity comes with terms and conditions.
Here's my game plan to fight this mess I've made throughout my 4.5 years in Private college. I've place a time that I would like to be completely out of debt. For me, it was no later than 2023. That would put me at about 28 years old. Since I've made that decision and grasp that the less I pay towards my student loans, the more I actually pay for them in the long run. I've decided to pay more, happily! In the past year, nearly 75% of my income has gone towards my student loans. I couldn't pass up on the no-interest compounding due to pandemic. This has allowed more of my hard-earned money to go towards the principal of the loan. Allowing me to pay the loan off faster. In the last year, I've paid off $30,000 worth of student loans. My goal is to now be completely out of student loan debt by next year. I'm paying as much as possible while the interest payments are suspended. Saving me thousands in the long run.
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