Debt-Free Living

3 Tips for Kicking Sallie Mae to the Curb

If you graduated in the spring, guess what? Your student loan grace period is almost up, and payments will kick in soon. Just in time for the holidays! How fun! Here are my tips to help you stay on track and pay off those loans as quickly as possible.
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  • Yuck, that means I’ve been paying off student loans for a whole year now! Luckily I’ve been on the debt snowball plan and have 40% of my loans paid off. This time next year I’ll be debt free!!!

    • Trista

      How much if ya don’t mind me asking?

      • Hi Trista! I don’t mind. My original debt balance was $44,000, which was $38k in student loans and $6k in credit card. I have paid off $17,600!! The real kicker? I’ve only been on the debt snowfall plan for 8 months. 🙂

        • Christy

          That would mean you pay approx $2000 per month towards these debts. I doubt most people would have that kind of disposable income. That’s good that you are able to accomplish this kind of feat.

          • Mignon Murray

            You be surprised how much disposable income one can find on any salary when living on a budget.

          • That’s correct – it’s about 50% of our monthly income. My husband and I are only living off of his income so that we’re able to accomplish this. It stinks to put your entire check to loans, but it’s a short term sacrifice.

    • Sallie Mae can suck it

      Sallie Mae is a damn scam. They interest out the Ass after 6 months.. And they double ur debt after 4 years. They can either kill me or go to hell. Eitherr way.. I win!

  • Student loans are depressing, but they got to go.

  • Tammy Brown

    Doesn’t your dad teach in FPU not to take student loans to go to school?

    • Valerie

      Of course he does, but that doesn’t mean that everyone followed that great advice. 🙂 I wish I would have known better. Sallie Mae sits on a chair in our living room and taunts us. Grad and professional school were very expensive and now we are paying for it.

  • pmalbu

    gah so much of this stuff is such common sense.. nalso, it’s not always about paying it off as soon as possible. Say, for instance, you have a loan at 3.5% (I have one of these). And then say you have a Roth IRA set up that is getting 8-9% ROI yearly. Then it makes more sense to throw money into the Roth than to pay ALL of your student loans ASAP (since 8%-3.5% = a net of 4.5% income). nnWhile she does have a decent one size fits all approach, it is certainly lacking in some areas such as well rounded investments and how they play into the big picture

    • Michael Henke

      You are not taking into consideration risk. Risk of losing job, stock market going down, etc.nnThink about the extra xxx each month after the student loan is paid off you could throw at retirement and if the person lost their job they wouldn’t have to worry about still paying on the student loan.nnIf you were good at numbers you won’t be in the mess with a student loan and debt.nnnnIt doesn’t make sense to have 100k in a roth if you have debt and can’t handle emergencies.

      • pmalbu

        It’s all about balance Michael :)nnnYes, you do have valid points: there are certain variables like stock market losses and job loss. However, I would encourage you to spend some time researching the many investment options out there. As far as Roths go, you can get very conservative ones and also very risky ones – it’s all what you are willing and comfortable to risk. So, if you make a conservative investment (doesn’t have to be a Roth per se, could be a Mutual Fund or straight up stocks or bonds) and are still getting a higher ROI than you interest rate for you student loans, then it makes a lot more financial sense to do so rather than throw all of your money into paying of the student loan right away. Unfortunately it is weird to think about it this way and logically it makes more sense in people’s minds to pay off the loans as fast as they can (common misconception, but that is what we grew up learning and hearing and so we have that instilled in us at a young age). Before I learned about investments and how the financial world of investing works, I was of the same opinion.nnnI think that the 100k you mentioned was probably an exaggeration so I will ignore addressing that. nnnLastly, the sooner you start investing, the more money you will have to retire on. Plain and simple. Doesn’t matter if you have outstanding student loans; if you can be investing “smartly” (key word) then you will be far ahead of the game.

        • Michael Henke

          We are agreement in investing but not in the step in which to invest. Listen more to Dave and it’ll come to you.

  • Kimberly SG

    We have been paying off student loans for 15 years ($60,000). We consolidated (husband and mine) many years ago and are now stuck at 7.25%. The monthly payment wasn’t hard ($388), but for 10+ years it was depressing. A year ago I started paying an extra $500 each month and finally see the balance moving rapidly down. My husbands answer all these years was, “let’s get the credit cards paid off and then throw all that money to the student loans” We had been to the Dave Ramsey Financial Peace University classes, but my husband just can’t do without when he wants something, especially eating out, so SHOCK our credit card is never paid off… I decided that since I was the one who handles all the paperwork, bill paying and finances, that I was going to do it my way and stop asking him for his opinion. He was not happy at first, but after a year of paying more to the student loans, he is seeing the progress. The side benefit is that the credit card is still getting paid, but since it is closer to the limit than he likes, he is being more careful about using it. We are now down to less than $35,000 which seems like a lot still, but considering just over a year ago it was still near $50,000, I am excited knowing in less than 4 years we (I) will have this AWFUL loan tackled once and forever—Just in time for the twins to go off to college–UGH. I guess I know where that extra money will be going:)

  • Debbie Kravel-Thompson

    I just kept deferring my loand and 20 years later they have doubled and its oh so painful paying them. I’m considering living in a van to do it. Lol.

  • redhand32

    My wife and I are 66 years old. I had to retire. My wife works full-time, and can’t retire because we co-signed for my son’s Sallie Mae loans. Because my son could not earn enough following the recession we are on the hook and pay most of the Predatory loans. I expect my wife to drop dead on the job because retirement is not in the cards. At that point, I will take my own life. Perhaps my son will be able to earn enough; I doubt it. Of course when both of us are gone the vulture will confiscate our property and then try to beat it out of son.

  • redhand32

    What Congress and the Administration don’t seem to care about is that the Student Loan debt crisis is like raising taxes during a recession/depression. It literally sucks the stimulus out of an age group that is supposed to be thinking about, marriage, new/old homes first purchase, children. In other words, work for construction workers, the folks that make appliances (who aren’t in China), baby cribs, new communities that need public services, etc. In other words, the people that should be buying new stuff can’t buy it. So, they don’t make it. The people that would have made this stuff or provide services instead are now unemployed/underemployed at McJobs along with the student loan debtors competing for their low-paying jobs. It’s like every student debt household is a “miniature version of Greece or Puerto Rico” because of the Sallie Mae loan sharks and the government. Permanent austerity.