Another "Student Loans are HISTORY!!!"

iVillage Member
Registered: 09-06-2007
Another "Student Loans are HISTORY!!!"
5
Wed, 11-30-2011 - 2:46pm

I am dying to share with SOMEONE out there - I have paid off all my student loans just this week!!!

iVillage Member
Registered: 04-10-2003
Wed, 11-30-2011 - 2:58pm
YAY FOR YOU!! HAPPY DANCE!! What a great feeling to have no student loan debt hanging over you when you graduate! That's awesome. I paid of my one loan (it was at $5k when I started) and now have "the Big One". This one was at almost $30k when I started. In total I've paid off about $12K. I am playing with numbers now to determine whether to aggresively target the large loan with every extra penny I have OR put the money in RRSPs and then take the refund and apply that to debt. I have to admit, I'm a bit torn on this one :)

Bex -

iVillage Member
Registered: 09-06-2007
Wed, 11-30-2011 - 3:07pm
That would be hard. I'd have to put half to RRSP and half to paying down the debt, or some combination. Basically I would NOT do whichever option includes no contributions to RRSP.
iVillage Member
Registered: 09-06-2007
Wed, 11-30-2011 - 3:08pm

I held off on my retirement contributions while I went back to school, but only because I knew I was going to pay the student loans off very soon. Now I'll go full force on retirement.

iVillage Member
Registered: 10-01-2008
Wed, 11-30-2011 - 3:21pm

CONGRATULATIONS!!!

Norma


"Patience is the best remedy for every trouble"- Plautus


iVillage Member
Registered: 04-10-2003
Wed, 11-30-2011 - 3:21pm
I did the math a few weeks ago. If I only pay $275 a month (the minimum payment plus the $50 snowballed from the other loan) it will take me . . . wait for it . . . 40 years to pay it off!!! And that is assuming no interest rate increases! Egads.

In order to pay it off in three years, I would need to pay $7850 a year, or $655 a month.

I played around with different scenarios. If I keep paying $275 a month, I still need to come up with $4550 (roughly) each year lump sum. This would mean putting approximately $10k away per year to equal an RRSP refund of that amount. This is above and beyond the ~ 8k that I have take off my pay :s

Not sure this is feasible at this point, so I think my plan of attack (as convoluted as it may be is):
Pay the $275 a month.
Flake $100 a month to cover the interest (somehow it makes me feel better knowing the the $275 is all principle)
Put any extra in RRSPs and apply the refund to the loan.
Any large lump sums (i.e. bonus next year) will be a game time decision.
Its the best of both worlds (I think) :)

Bex -