Starting Over

4 Dec

Well, it finally happened.  They found me.

The graduate student loan company.

My Income-Based Repayment plan for my Master’s degree came due in November.  This meant I had to drag out my 2012 tax information and reapply. (Boy are there some bad memories associated with that pile of paperwork. The HR company that handles my paychecks made a clerical error that led to a $4,000 tax bill.  I’m still not over this.  I actually Googled how much a kidney sells for these days.)

The good news is that I made more in 2012 than I did in 2011.  The bad news is that the loan company took that as a sign that I could start sending them money. $158 each month, to be exact.

So, after a year off of student loan payments, I’m back on the treadmill of never-ending interest.  My current loan balance is $73,296.75.  My initial loan amount was for $60,000.  We’re not here to get into the bad financial decisions that led to that initial amount, but yeah.  2009 wasn’t my best financial year.

Fun fact- students pursuing a degree in a medical field are allowed to borrow over the legal student loan limit.  Funner fact- students can override the legal student loan limit with one click on an online survey. One click. By a 22 year old kid. Suddenly the student loan crisis makes a lot more sense, huh?

Anyway, my goal is to pay off these loans by the end of 2020. (My current balance is 6 times higher than my undergrad balance, therefore I get 6 extra years.) There’s also a failsafe built into this plan- since my loans were issued after 2007, any remaining balance can be forgiven after 120 consecutive minimum payments. If I don’t make it by 2020, at least I know the loans will be gone by 2024.

Rather than go all out like I did in 2011, I’ve decided to set yearly goals. After all, this repayment is going to be a marathon, not a 12-month sprint. So, for my goal for 2014 will be to get the balance under $68,000.  For those that hate math, that means a monthly payment of $458 per month, for a total of $5,493.87 to be paid by the end of 2014.

You guys ready to dive back into the agnst-inducing world of student loan monthly payments?  The posts will be just as weird as 2011, and on a more regular schedule than 2012.  Beyond that, I make no promises.

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2 Responses to “Starting Over”

  1. Aydee December 12, 2013 at 9:15 am #

    Does that calculation per month include interest? Don’t know what you’re rate is but with mine, it comes out to $12 interest a day for 67K ::sobs at realization::

    • Katie December 12, 2013 at 9:23 am #

      Yes, it does include interest. My rate is 6.8%. I locked it in when i got the loans, so it wouldn’t go up on me.

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