It might help if I clarify
I guess because I LOVE small houses, I don’t think of mortgages in the hundreds of thousands anymore 🙂
Our student loan balance is currently at $65K. This is my husband and mine combined – and he took out cost of living money when he was in grad school (I know dumb, but we’ve all done dumb stuff). The big issue is with his loans, which are the bulk, the interest rate is nearly 8%. It’s ridiculous. Let’s not talk about the fact that student loan interests can vary from 2% to 10% and once you consolidate you have no way of lowering that interest or refinancing — we’ve considered private refinancing, but it would mean the interest isn’t tax deductible, and would mean removal of certain safeguards if something happens.
So, with that balance and that interest rate, it will be years. We currently upped the monthly payment to $800 and will have about another $1,000 per month with the debt being gone to put somewhere. Glad others have similar thoughts to build up the FFEF first. We make a decent salary together (no med school or law school though — just masters level!) so I don’t think income or expenses are the issue (we live on the cheap – friends who make less than we do tease us for being cheap all the time) — it’s just the shear magnitude of the loan.
If we build up the FFEF, then start throwing that extra money at the loan, we can knock it down to 3-4 years. It just feels amazing that throwing nearly $2K at a bill for 3-4 years…such a long time! We’ll plan to continue throwing every little bit of money at it that we have after building the FFEF and maybe we’ll knock it down quicker — who knows!
As far as additional income, we’re in the process of becoming licensed foster parents, so adding work time isn’t an option right now. (in fact, I may go down a bit in hours meaning a little less income)
Thanks for the support – we’re trucking along – I guess I just hoped at this income level and having disposable income right now that we’d be able to knock it out quicker!
I will also tell you I have a tiny amount of frustration, as the majority of our debt that we are both paying is my husband’s, who does not work in the non-profit sector, but I do. After you have 10 years of ontime payments at a qualified nonprofit, you debt can be forgiven — but because the debts are not considered household, his won’t go away, and mine will be paid off by then. 🙂
I can’t begin to tell you the party I will throw when the student loan debt is GONE!!!