I'm about to empty my bank acct and drop $20k to slay my student loans

[UberEatsDriver]

I wouldn’t pay all of it @ once...nor should you just pay the minimum...it just doesn’t seem prudent to dead all your savings like that...if $20k is what you owe pay like $1000-1500/mo. and keep shyt in the bank for a real emergency if needed god forbid...you’ll be out of debt in a year/year and a half

You technically do not have any savings if you are riddled in debt. Once you get rid of debt you can easily and quickly get those savings back starting in 1 month since that heavy load will be off your back.

 

[UberEatsDriver]

When Bernie forgives student loans next year

you gonna be

how do you know this is going to happen?

 

[UberEatsDriver]

You can negotiate if you default or if you have a private loan (certain companies will do it).

negotiating is easier with federal loans. Private loans are the worst loans to get for school especially if you end up getting a job that pays crap when you graduate.

 

[NaijaProdigy Redux]

What’s the interest rate on the loan (and what kind of loan)?

Theres a potential arbitrage between the market return and interest payment

Having no liquidity is never a good idea

 

[concise]

exactly! Wipe off debt as fast as possible so you can be debt free and save up for emergencies

And what if an emergency pops up before he gets that 20k back? Before he gets even 2k back?

You can use your debts to your advantage if you know what you're doing.
You can pay off your debt early in half the time, or less, if it makes you so nervous.


It is far better to have 20k in debt and 20k on hand than to have 0 debt and 0 on hand.

 

[™BlackPearl The Empress™]

Need more info.

But I wouldn't part with a whole 20k and leave myself with no cash. I'd probably just make higher loan payments to get that A1 credit until I had more cash than the loan...maybe when I had an additional $5000...then I'd pay if off.

 

[UberEatsDriver]

And what if an emergency pops up before he gets that 20k back? Before he gets even 2k back?

You can use your debts to your advantage if you know what you're doing.
You can pay off your debt early in half the time, or less, if it makes you so nervous.


It is far better to have 20k in debt and 20k on hand than to have 0 debt and 0 on hand.

it’s an option.

you can create a second savings account while paying off your student loans to make sure you have back up money for emergencies when wipe off your debt one time.

many students who are smart with money actually do this already.

 

[goatmane]

My mouse is hovering over the button rn

Someone anyone give me a good reason not to click

Debt free life vs payment plans. I could save this for a down payment on a home tho...

U trolling bro? If not, go talk to a certified financial planner and get ur mind right

Breh theres really an easy choice. Are you shytting me... get the damn house

Save your money

If you got 20k, you most likely financially healthy enough to pass a credit check and get refinanced.

That way, you lower your payments AND get your house

 

[Astroslik]

negotiating is easier with federal loans. Private loans are the worst loans to get for school especially if you end up getting a job that pays crap when you graduate.

How do you negotiate a federal loan without being in default?

 

[UberEatsDriver]

Another option is to calculate your emergency expense and deduct that from your student loans so you can half to 75% off.

When it comes to student loans there is no time to waste. Nobody should be attached to that type of bill for half their life.

a student loan is not comparable to a car finance, personal loan or collection bill.

it given the opportunity to wipe that debt off please do it.

student loans are like a barrier that slows your progress down in life.

 

[UberEatsDriver]

How do you negotiate a federal loan without being in default?

it’s more about the options. Federal loans give you numbers of options.

Private loans not really.

 

[⠝⠕⠏⠑]

Step 1: Get on the public service repayment plan
(Pay 10 years and remaining balance is paid off)
Step 2: Get on income repayment plan
Step 3: Go work overseas. (I wonder if this works for online overseas jobs)
Step 4: up to $100,000 is untaxed income when u work overseas
Step 5: Your student loan payment will be based off your income. But ur taxable income is like $0 or very minimal b/c u make ur money overseas so ur student loan payment will be piff.
Step 6: Pay ur low ass student loan payment for 120 months...just calculate the amount it will cost to pay off and put it in a bank account and set it up on auto pay.


I’ve heard of people with $20 student loan payments who owe like 120k. A lot of teachers working in Dubai are apparently doing this.

Don’t know if this shyt will work but ummmmm....it’s worth a shot. They got tenure track positions in Abu Dhabi I’ve applied to.

 

[WesCrook]

Bro, do not empty out your bank account for this.

Just pay double whatever the regular payment amount is if you're so anxious to get rid of it.

And you'll still have flexibility to do things with your money in case something unexpected comes up, because you'll really wish you had something more on hand than a note that says your loan has been repaid. If you should lose your job and can't find another for a few months, you could still pay all your bills, including your loans.

This is the best financial advice so far.

ALWAYS have some cash on hand. As long as he keeps his accounts payable at a manageable amount.

 

[Originalman]

Yeah but that's gor broke boys.

We ain't defaulting on loans out here

Breh no one should want to default on student loans. They can garnish your check or take your income tax return.

Also when negotiating a default loan often times they just eliminating late fees and penalties. So you still probably left with the original loan. Or they combine the late fee and penalties into the principal.

Man fukk that shyt.

 

[Originalman]

Each day breh doesn't pay it off, more interest is accumulated.

If I had more than 20k and I knew I could refill my bank account quickly enough, I would negotiate and pull the trigger. Not giving them one more cent than I have to.

Props for dropping the 10k on them though! That's impressive!

Exactly them student loans compounded daily. Then don't let OP have a shyt interest rate like 5.35%.

Thats why its best to go through folks like lendkey and their competitors. He can get that loan down to 3.35% on a fixed and 1.7% on a variable.