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I started my student loan journey a year ago in this post, August 2015. It is now September 2016, 11 months in. If I really want to be on my 36 months plan, that means I have 25 more months to go. That breaks down my math of $24k/25 = $960/month. It didn't sound possible when I did the math, but now that I really think about it, it could be. Just gotta #werkwerkwerk. It makes me feel great that I can actually put money toward my savings, but it's not really savings when it'll end up going to student loans eventually.
After reading so many blogs about student loans, I finally called Navient, my loan service-r, to see if I can pay with a credit card over the phone. I found out that they accepted it; Vias & Mastercard for sure! I am so lame T____T for not making a payment last month when I just got my BOA card, because my promotion was no interest for charges made 60 days from account. Here are a few things I found out:
- You can only use your card to make the monthly payment total, NOT payoff a balance. It could be different for you; we all have our own paths and luck.
- However and therefore, when you pay with your bank account, you are able to pick where you want your payment applied
- There are no credit card fees for federal/government loans! (yay to me!)
- There are fees for private loans
- With or without a credit card, when you're ready to pay off a specific loan, it must be instructed. If you don't do this, it'll be applied evenly to all the loans.
- Now I'm wondering if I can do auto-pay on my card, but I think Navient specified that it only allows a bank account on auto-pay.
I was influenced by this idea from the lifehacker blog, "if you pay your student loan with a credit card every month (assuming they accept it) with the amount you were going to pay towards it anyway, you can boost your credit score and get rewards." That means that you have to have the amount you were planning to pay anyway in your checking account because if you don't, instead of a 6.5% interest rate hitting you, it's 21%+ credit card. I also enjoyed reading from studentloanhero.
It's a bad idea, but I believe I will be responsible enough to do this, so I've decided to go this route. I plan to pay my monthly balance with my credit card, because of reason #1, and then I will pick the loan I want to pay additional with my checking account because of reason #2. So I'm really paying like $600/month, just 2 separate times and some bogus rewards points from my card too.
I recently thought about how different my life would be if I didn't have this or when I'm done with this. I'd work part time...I could do that now if I wanted to, but I really just want to get rid of this. I would just have more money to do what I want with it. If there was no interest in this, I wouldn't mind. But the interest is ridiculous. My balance was $25,747, paid $3120, $1876 was applied and $1244 went toward interest. I can't stand the idea of $1244*10 years (the time they give you) = $12,440 toward interests. That's a car for my future kid, lol.
I mean, I'm just really thinking ahead as a future mother. I don't want student loans to be my motivation to work and also be stuck at work. I love family and I want to be able to work part-time so I have time for my children; so my income goes to them and not loans; so I can afford a house (as in a loan) for them; so I can just be the 1000% person I've imagined myself to be; so I can stay home and watch Netflix even if I don't have children; so I can take off work and go MIA whereever and however long I want because I don't need a job to pay for student loans; so I can be free. That's what this is really about, freedom from debt; debt that ripples you to have a job; ripples you to do 9-5; ripples you to not have vacation; ripples you to be stuck; ripples you to be miserable.
That's what it means to payoff my student loans. Anyway, this be my plan and I don't care who sees this; I mean, only 10 people actually read my blogs :D.
I recently thought about how different my life would be if I didn't have this or when I'm done with this. I'd work part time...I could do that now if I wanted to, but I really just want to get rid of this. I would just have more money to do what I want with it. If there was no interest in this, I wouldn't mind. But the interest is ridiculous. My balance was $25,747, paid $3120, $1876 was applied and $1244 went toward interest. I can't stand the idea of $1244*10 years (the time they give you) = $12,440 toward interests. That's a car for my future kid, lol.
I mean, I'm just really thinking ahead as a future mother. I don't want student loans to be my motivation to work and also be stuck at work. I love family and I want to be able to work part-time so I have time for my children; so my income goes to them and not loans; so I can afford a house (as in a loan) for them; so I can just be the 1000% person I've imagined myself to be; so I can stay home and watch Netflix even if I don't have children; so I can take off work and go MIA whereever and however long I want because I don't need a job to pay for student loans; so I can be free. That's what this is really about, freedom from debt; debt that ripples you to have a job; ripples you to do 9-5; ripples you to not have vacation; ripples you to be stuck; ripples you to be miserable.
That's what it means to payoff my student loans. Anyway, this be my plan and I don't care who sees this; I mean, only 10 people actually read my blogs :D.
The reason why I wrote 1 & 2 for the ones I'm tackling is because of the photo below. I can really delay my interests cost by going back to school and getting another degree, while making my normal payments, like what this post is saying. But then I'll have to pay 6 credits worth of classes also, which is the cost if I just actually make my payments instead of delaying it.
Here is their contact number when you're ready to make a payment
Call 800-722-1300
Monday – Thursday 8 am – 9 pm ET and Friday 8 am – 8 pm ET
1-12 $821
1-13 $1717
Declaration Date: 9-24-15
End Date: 9-24-18
10-25-16 Update. Next target: $3,064.30 in 3 months, January 2017. That number is going to go down to $18,378. I just can't wait to see this balance amount go down. I am using the debt avalanche method, paying off your loan with the highest interest first. Because the accounts with the highest interest rates will grow the fastest. You’ll save the most money by paying off your loans with the highest interest rate. Read that < article and you'll know if the snowball or avalanche method is for you.
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finances
Life
studentloans
Call 800-722-1300
Monday – Thursday 8 am – 9 pm ET and Friday 8 am – 8 pm ET
1-12 $821
1-13 $1717
Declaration Date: 9-24-15
End Date: 9-24-18
10-25-16 Update. Next target: $3,064.30 in 3 months, January 2017. That number is going to go down to $18,378. I just can't wait to see this balance amount go down. I am using the debt avalanche method, paying off your loan with the highest interest first. Because the accounts with the highest interest rates will grow the fastest. You’ll save the most money by paying off your loans with the highest interest rate. Read that < article and you'll know if the snowball or avalanche method is for you.
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