If my interest rate was removed/reduce to minimal (1%) on my private loans it would save me $191 each month and I could even pay it off 3-4 years earlier than projected. I could be totally student loan debt free in 10 years instead of 15.
I got a paper in the mail today from AES about my private loans. on a total of $42,631 of student loans original balance. I have paid a total of $20,814 on them and my current balance is $43,180. $16,536 has gone to interest. I have a relitively low (compared to a lot I have seen posted here) interest rate.
Forebearance and Defferment are terrible yet mostly needed options. I was not informed enough as an 18-20 y/o going to college (first in the family) and taking out student loans. I was 17 y/o when I took out my first student loans. Nobody at that age is informed and/or mature enough to truley understand all the in's and out's of the student loan system and its forebearance/defferment options and what they will truley do to you and your loans.
Just seeing these numbers all worked out on my private loans makes me sick to my stomach. :x
I mean how messed up are private loans. You know, I was in your same situation however I only borrowed 80,000 and the people from Sallie mae sold me at the time that no interest would accrue during college. What a lie. I graduated with 121,000 to my name. Just private loans and then found out after graduating I had federal loans of 18K.
What a joke. Now I am struggling for the last 3 years to get a full time gig that pays for a film/television bachelor. I currently worked in NY for a year as an editing assistant for special effects house and advertising, then had to move back home with the parents because I had to pay the loan and couldn't rely on freelancing. No one wanted to hire full time.
When I was in Atlanta, no one was hiring an entry level AV coordinator or assistant editor. Everyone wants an editor with motion graphic experience. A HUGE DEAL that no one told us in film school. I graduated in 2007, you think that they would have been up to date on the job market, but I learned it all myself.
I ended working for dish network to try and get money. I had no job for 5 months in Atlanta and my money went from 1000 - 0 dollars.
I currently got a job in Va as an editor/ coordinator for this one company. They are non profit and only paying a salary of 35,000. Its good and I am blessed, but my monthly payments are 1012 dollars a month. I barely make that in a check. With car insurance, rent and food, transportation and health insurance, I am barely floating above water. I had 2 jobs, but had gotten laid off of the other one, so I am now back to not being able to pay anything. Just went into forbearance yesterday and was told that in 3 months, my bill will be 2 grand higher.
When will they HELP US!!
I mean, fine dont bail me out, but offer me a solution. Give us an income based repayment, hell do like the UK and give us 0% interest so we can just pay down the loan. I mean we are all trying, its not like we took this debt on knowing we wouldn't be able to pay it.
Hell, I'm suppose to be following my dreams and making better movies than I love you Beth Cooper. Well sorry, just got mad and have no one to talk to. My friends and family have no debt. I was the first to graduate in my entire family. I graduated with a lot of rich kids, whos parents bought them porches to go to college in while I had my 90 honda prelude haha.
but you're in good company and amongst friends here! So many others are in the same boat as you, my friend, and I hope it gives you some sort of comfort to know that you're not alone and that we're collectively working to change everything that's wrong with the situation you just described!
Just to clarify, how is your loan balance higher now than it was when you started?
Currently, as per your loan term, your payments are going only to interest since you are on a long term plan?
I agree that the interest rates are astounding. When I consider how much I owe and the interest rate, I realize I will be paying double to triple what I owe. Its amazing that they can make education so expensive to begin with and then add on these predatory interest rates.
Have you heard about Jesse Jackson's movement called Reduce the Rate? I think that we should support both movements, hopefully one will work.
http://www.reducetherate.org/
I've got over $100,000 in private loans. I was 23 and still didn't know anything about how loans worked and nobody told me what my minimum payments were going to be. They charge interest and late fees like it's a credit card, yet unlike any other private loan in this country, you can't discharge it in bankruptcy. There's no way, no way that's constitutional...I have no idea how it has not been struck down. These guys don't want us to pay them off. They want us to be late so they can charge fees and add more interest and then default us...knowing that no matter what, they will still get their money.
Why should they be the only private companies in the United States that gets paid no matter what...no risk. They even get more garnishing and collection rights than other creditors. It invites predatory lending and corruption. It is revolting.
That's just it. They never tell you what your payments will be when you get out of college. It's a deceptive scam intended to force you into a form of debtor's prison as they own you and you just cannot move on with your life until they're paid first. It's also clearly predatory lending, and should be investigated and fixed if it weren't just so darn profitable for the companies who lean on the politicos.
Isn't it funny how a $20,000 car can and on average is paid off in five years or so, yet a student loan for that amount yields higher interest and longer repayment schedules (up to 10 to 20 years) to compound to greater profits for lenders? WHEN I get another job, my monthly student loan payments will actually be higher than a new car payment for a car of the same value (approx. $20k, but growing by the day due to interest compounding while I seek a new job), have more fees, and take ages longer to repay.
Denny you are so right on... but money talks... and these lenders are powerful and have lobbyists that live at the whitehouse steps.... that is why we can have power in our numbers and we need to keep this group going and growing... great comment.
defermnet and/or forebearance while I was in college. The money I made working through college paid my utilities and living expenses. therefore the interest was capitalized on my loan.