Thursday, July 30, 2009

Montly Student Loan Debt Roundup

I just started this feature at the beginning of the month and I'm anxious to post a second month to see if there's any progress on my student loan debt. And since the first of August is a Saturday I'm putting it up two days early.

Subsidized Stafford*
Start 07/09 Last Month This Month Difference
$41,454.63 $41,454.63 $41,390.05 -$64.58

Unsubsidized Stafford*
Start 07/09 Last Month This Month Difference
$34,376.12 $34,376.12 $34,322.56 -$53.56

Private Undergrad Loan**
Start 07/09 Last Month This Month Difference
$26,393.79 $26,393.79 $26,177.70 -$216.09

Defaulted Private Loan***
Start 07/09 Last Month This Month Difference
$25,190.84 $25,190.84 $24,670.84 -$520

Perkins Loan****
Start 07/09 Last Month This Month Difference
$8,665.23 $8,665.23 $8,514.27 -$150.96

Law School Loan*****
Start 07/09 Last Month This Month Difference
$1,710.70 $1,710.70 $1,625.31 -$85.39

Grand Total
Start 07/09 Last Month This Month Difference
$137,779.31 $137,779.31 $136,700.73 -$1,078.58

*Note, the interest rate for these loan has been decreased from 4.875% to 4.625% by signing up for direct pay!

**My parents pay this loan. The interest rate is 4.13%.

***My previous calculation was a little off. There is no interest on this loan since it's technically not a loan anymore, just a payment agreement.

**** @5%

***** This is the smallest but most annoying loan at 8% interest. I am currently paying double the minimum payment each month and hope to knock it out completely in this calendar year, pleasing both Dave Ramsey and Suze Orman fans.

I am pleased to say that my student loan debt has decreased over $1000 this month. Sure...that includes $260 in financial error on my part but the good news is it can only go down from here! I feel like my Stafford Loans aren't going down as much as they should but it's probably chalked up to the problem I noted before about paying on different days on the month screwing up how much of your payment goes towards the principal. Now that I'm direct pay I'll be checking to see if more progress will be made.


Anonymous said...

It's nice of your parents to help you out with one of your loans.

Do you feel tempted buy new gadgets like the 32gb itouch? I do but over the last three months I've been trying to put what little money I have left over, after paying essential bills, into equities. I'm not buying any new gadget until mid next year.

Money Funk said...

Nice progresss on the SLs!

My repayment starts soon. So, I'm on this wicked budget to try and get money for my SL payment by paying off a crap load of money in 18 weeks. Least, I won't an extra 2 payments to hassle with when the time comes. But the holidays are going to be tough!

Keep up the great work. I wish I had two * next to my loan. :)

Angie said...

I am curious as to why you just don’t pay off the 8% loan, especially at such a low balance. If you used the money you currently put towards your wedding fund (or windfalls like getting your security deposit back) you could have it paid off in 3-4 months. Then go back to saving for wedding fund at a higher amount. You seem to be scrimping on your budget other places, why not find $40/month by getting rid of this loan and saving the interest? Plus then it won’t bug you so much!

Sallie's Niece said...

@Angie, that's a valid point. I do plan to knock it out in 2009 but haven't figured out how to do that and still save for the wedding. I don't have the money to pay it off completely right now. But I will consider your suggestion and let you know what I decide.

Angie said...

I know how it is. I'm struggling the balance between saving for a wedding and paying off high interest loans too. Its all a balance and deals with your comfort level. I think to cope with that I made a strict wedding budget and the rest towards loans. I think mines quite lower than yours though just but a quick look at the numbers. Good luck! Looks like you are doing pretty well!

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