Thursday, June 10, 2010

Eye-opening

I got a statement from my student loan company and it's really eye-opening.
 
My full disbursement was $19,831 for two years of graduate school. So far, I have paid back $$262.52 in principal and $30.48 in interest (therefore entirely paying off the two unsubsidized loans I took out). My current balance is $19, 568.48 at 6.80% interest.
 
If I paid only the minimum payment ($225.20) it would take me ten years to pay off and ultimately cost $27,023.05.
 
!!!!!!!
 
That increases the amount I'd pay by almost a third! Not to mention I'd be dealing with a stupid bill every month for the next decade.
 
Um, no thanks. This entire loan will be gone within a year, two at the most. I expect to pay less than $1,000 in interest.

4 comments:

  1. That's great that you have the motivation and the means to knock that debt out so quickly! Keep us updated, please.

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  2. When I saw my student loan statements, I felt the exact same way

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  3. Oh geez. I feel the same way about my student loans. I'm hoping to knock mine out in a couple years.

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  4. Yeah... I have been paying my $18k in undergrad loans for 5 years now. Balance is at $13k.... ugh. Getting serious on it after I pay the credit cards off this October. Just be glad you had the smarts to look at it now.

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Thanks for commenting!