Comments on: A Student Loan Prepayment Plan, and Other Small Miseries

By: becks

becks — Tue, 04 Nov 2008 19:39:13 +0000

"That would be my savings. I can’t save more anytime in the foreseeable future unless, for a while, I save less." Keep in mind that while you are "saving less," any additional payments are actually earning you income. Paying down that principal is an automatic return of ____% (insert student loan interest rate here)

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By: Queercents » Blog Archive » Welcome to Your Student Debt

Queercents » Blog Archive » Welcome to Your Student Debt — Mon, 15 Sep 2008 21:26:05 +0000

[...] are. Which is awesome and not cruel of the universe at all. It’s counterintuitive and frankly kind of miserable to throw additional money on a huge minimum payment, but you’ll be happy to get that minimum down. I gambled more than I realized when I chose to [...]

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By: Queercents » Blog Archive » Hey, This Financial Planning Thing Actually Works…

Thu, 10 Apr 2008 01:05:49 +0000

[...] the rounds of my accounts this week, I was pleased to discover that after a few months on a regular prepayment plan, the minimum payment on my private student loan has dropped a sweet twenty [...]

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By: Amy

Amy — Sun, 23 Mar 2008 05:18:07 +0000

Melissa -

Thanks for reminding me that I am graduating into a recession – with not as much debt as you did, but still, a significant chunk of change every month paying off my education.

Ever wonder, in retrospect, how much every class that you skipped cost you?

<3 Amy

P.S. Found you. Not creepy, at all. *hugs*

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By: Queercents » Blog Archive » Six Month Review: The Big Girl World

Queercents » Blog Archive » Six Month Review: The Big Girl World — Wed, 12 Mar 2008 15:14:58 +0000

[...] A Student Loan Prepayment Plan, and Other Small Miseries [...]

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By: Prosper Roundup — Superbowl Edition

Prosper Roundup — Superbowl Edition — Sun, 03 Feb 2008 17:06:08 +0000

[...] Melissa at Queercents gives A Student Loan Prepayment Plan, and Other Small Miseries [...]

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By: Nina

Nina — Thu, 31 Jan 2008 06:45:13 +0000

"This makes it more important that I put my energy into freelancing and writing–that side income is still tiny for me, but it’s my best shot for getting ahead in both savings and debt." Melissa: You're smart to be thinking about alternative income streams. If you're spending your time making money, then you can't be spending money. You'll get those loans paid off in no time!

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By: Melissa

Melissa — Thu, 31 Jan 2008 00:24:02 +0000

@AJ: ahahahahahahahahaha have I tried a spreadsheet? Might I, perhaps, have some kind of spreadsheet somewhere? Might I have a series of detailed spreadsheets leading back to sometime in 2002... (K, that's a lie. The series is intermittent and only occasionally detailed. But yes, since entering the Big Girl World I've been tracking everything with our good friend Excel and it has been a lifesaver.) @Julie: Yes, I'm DEFINITELY happier in the long term spending this extra money on prepayments than happy hours. (I think.) @Larry: It isn't the interest rates that's so burdensome, it's the tendency to have borrowed a shocking amount as the principal! But yes, I am paying down the higher rate, smaller balance private loan first. The federal loan is like a huge thundercloud in the distance, I prefer not to think about it. @Debbie: Yeah, running those calculations was what made me decide to start prepaying in the first place. It IS pretty inspiring.

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By: Julie the Graduate

Julie the Graduate — Thu, 31 Jan 2008 00:22:29 +0000

I'm so glad that you posted about this! I'm still in my grace period, but I'd like those loans to disappear ASAP!

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By: Debbie M

Debbie M — Wed, 30 Jan 2008 22:36:39 +0000

My favorite psychological maneuver, at least during the first half of a loan payback period, is to recalculate the date when the loan is paid off. For example, if you can calculate how much of your current payment is going to principle (that's the depressing part), then if you can pay that much extra, you're cutting a month off the end of your loan (that's the exciting part). When I first got my mortgage, only $30 was going toward principle (more like $60 in today's money). So paying off an extra $100/month meant cutting off over three months from the end of my loan.

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