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February 08, 2006


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I dread the day that I have to start paying back my student loans. I am going to be starting work towards an MBA immediately following my BS, but I am going to start paying down my loans before I start my MBA. Unfortunately, I went to one of those barely accredited trade schools before I actually started working on my degree. That cost me $10K for a year, after grants. I do think it payed off as the certification I received, as well as the experience I have acquired, has really improved my earnings. I already make about $20K more than a fresh grad averages, but I have earned it. I have racked up $20K at my university, but it could have been $40K. I kept it to a minimum by getting merit based scholarships and using CLEPs and portfolio work. My employer paid for a couple of classes, as well.

I plan on my employer paying for nearly all of my MBA. Anything that is not covered will be paid for by me, without a student loan. If anything, I will still be able to get the Lifetime Learning Credit for another year or two.

I recently graduated college with $17,000 in student loans. I've worked throughout college, and I have saved up more than enough to pay off my debt. Now I'm wondering if its better to pay it all off now, or pay it off monthly for 10 years to raise my credit score. I only got my first credit card last year, and I don't have much of a credit history. Do you think postponing my loan payment might mean a lower interest for a future big purchase, such as a house?

David --

Are you asking what I would do or what I think you should do? ;-)

What really makes me ill (with jealousy), is when I hear about people getting their student loans all paid off by a rich family member, or Mommy and Daddy. If we could all be so lucky right!

I agree. I am trying to find ways to lower payments and not go into default. I worked thru college to pay living expenses and books but the tuition and lab costs racked up. I was unable to get a higher paying job, I got pregnant and got married and moved in with my husband's parents with our small child and now I can't find a job. Student loans are just accumulating interest and the loan companies are making me feel worse than I already do. Is anyone out there have a story like mine. My sister graduated, found a decient job but the pay she is receiving does not cover living expenses AND she works hard...going in at 5:00AM and working until 3:00am with NO overtime. She has a child and has to pay childcare for her crazy hours. How is she suppose to pay her loans? Anyone have any idea's.

I had always been all for paying the higher interest loans off first, but in the last year have found a certain well known debt guru who says to pay of the smaller one first because it keeps you will pay it off so much sooner, hence, energizing you to keep moving forward with your other debt. I'm seeing this work for so many friends and family that I have to be the dissenting voice from everyone else's advice. Yes, you may spend a few extra bucks in interest, but more than likely you will spend less in the long run because you will be so motivated to pay off early.

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