Eck…I finally have to start paying my student loans

Eck…I finally have to start paying my student loans

Well I’ve been out of college completely now for over two years, but the student loan people just finally figured that out. I graduated with my MBA in Dec of 2004, but for whatever reason the student loan company thought I was still a full-time student. Which was nice because all of my student loans were being deferred and the government was still paying the interest on the subsidized loans. Well I got the bad news today that they figured out that I am no longer a student and will have to start making payments come next August.

I have about $50,000 in student loans, that is an accumulation of my under grad loans, my wife’s under grad loans, and my graduate loans. I consolidated them all together a couple years ago when rates were at their lowest, so I was pretty excited about putting off even starting payments until as as long as possible.

I have all of this student loan money locked in at 2.82%, plus once I actually sign up for electronic payments I get another .25% knocked off my rate, plus once I make payments for 12 consecutive months I get another .25% knocked off. So in reality I’m sitting with $50k of loans at 2.32% on which the interest is tax-deductible. Needless to say I signed up for the absolute slowest repayment plan possible. I think I was able to stretch payments out over 28 years or something like that. I was very fortunate to consolidate when I did, heck had I known I could get money this cheap I probably would have taken out a lot more and just invested it.Anyway my initial payments will be $161 a month starting next August, which means I’ll have to find roughly $2000 a year from my already existing tight budget to start paying these loans 😐

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