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Discussion Starter #1
i have a ton of school loans, but i likkee car parts.

and before i buy anything, there is this huge debate over, "i could use this money to pay off my school loans faster, or i could buy new wheels"

and this is keeping me from doing so much with my car it sucksss.
 

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i have a ton of school loans, but i likkee car parts.

and before i buy anything, there is this huge debate over, "i could use this money to pay off my school loans faster, or i could buy new wheels"

and this is keeping me from doing so much with my car it sucksss.
Yep. I'm in the same boat. I do it like this. The student loans always win over everything. Because the quicker they're gone the more I'll have for everything else. I mean my student loan payments are only about $80 a month cheaper than my mortgage payment. So once they're gone that'll free up all the money I'll ever need for car mods. Or other important things haha.


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Getting out of debt is the most important thing for your future. Toys can come later. That being said, I don't have school loans, but I have two teenage girls who plan to go to college. Wheels have to wait for me too...
 

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Discussion Starter #5
i came out of school with 104k in loans, the minimum was almost a grand a month. ive paid 40k in the past 2 years, and of because of those amazing interest rates im still 75k in debt. The higher education system sucks.

i cant even imagine having an extra like 1500 a month to do something with.

...errrr yeah i can, it would be an RS haha
 

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I had $75k in debt after I graduated and paid it off after 3 years mainly in part to the fact that I lived in China for 2+ years and work paid my apartment, insurance, etc... That freed up all my money to dump into student loans.

Pay off your loans man. The interest rate if they are private loans is likely between 7-10% and that's a HUGE rate of return. That RoR is better than most other investments you could make at this time...
 

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In the same boat as you guys... I remember driving past the sallie Mae building with my friend in the car and he said out of the window sallie Mae is a dirty whore lol.
Be as aggressive as possible with paying off your loans. The faster you get rid of them the more time you can move on with your life. It doesn't hurt to buy a car part every once in a while though.
 

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I had $75k in debt after I graduated and paid it off after 3 years mainly in part to the fact that I lived in China for 2+ years and work paid my apartment, insurance, etc... That freed up all my money to dump into student loans.

Pay off your loans man. The interest rate if they are private loans is likely between 7-10% and that's a HUGE rate of return. That RoR is better than most other investments you could make at this time...
If you are paying 7-10% plz look into consolidation, you can probably get them down to about 4%.
 

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i came out of school with 104k in loans, the minimum was almost a grand a month. ive paid 40k in the past 2 years, and of because of those amazing interest rates im still 75k in debt. The higher education system sucks.

i cant even imagine having an extra like 1500 a month to do something with.

...errrr yeah i can, it would be an RS haha
I had $75k in debt after I graduated and paid it off after 3 years mainly in part to the fact that I lived in China for 2+ years and work paid my apartment, insurance, etc.. That freed up all my money to dump into student loans.

Pay off your loans man. The interest rate if they are private loans is likely between 7-10% and that's a HUGE rate of return. That RoR is better than most other investments you could make at this time...
What are you guys, doctors or lawyers? That's an outrageous number. I graduated 10 years ago from a private school with about 35k. I made some smart financial decisions including paying about double what my payments were (not possible for everyone, but I was a teacher living on $35k/year, so it's possible for most), buying a foreclosed house and putting lots of work into it and selling two years later at a $30k profit. Most of that went to paying off student loans.

OP it is good that you struggle with these decisions. It means your conscience is smart. It's difficult for sure, but pay off the loans and you will reap the benefits down the road. And stay away from credit cards.
 

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Running into this with the wife now, we consolidated and had the payments based solely on her income (payment difference was like $500/mth when my income was included)...Its working out so far, lowish interest rates, and should be paid off in 11 years, but I plan on making that timeframe shorter
 

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Discussion Starter #12
What are you guys, doctors or lawyers? That's an outrageous number. I graduated 10 years ago from a private school with about 35k. I made some smart financial decisions including paying about double what my payments were (not possible for everyone, but I was a teacher living on $35k/year, so it's possible for most), buying a foreclosed house and putting lots of work into it and selling two years later at a $30k profit. Most of that went to paying off student loans.

OP it is good that you struggle with these decisions. It means your conscience is smart. It's difficult for sure, but pay off the loans and you will reap the benefits down the road. And stay away from credit cards.
lol not even close, went to Temple for mech engineering, got pretty much zero help from government, zero help from the rents (they began splitting senior year of high school) and tuition and rent are 26k a year.
all my class mates and the kids i lived with are around 80k-100k, depending on how much assistance they got.

but yeah, ive been double paying them since the start.
 

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Aha, well I got a lot of help since my parents were pretty middle class. My schools tuition was 30k+, but I'm guessing almost no one there was paying that. My wife (who's family had the means to pay) got a full ride, which is great for us, but kinda makes me angry.
 

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i have a ton of school loans, but i likkee car parts.

and before i buy anything, there is this huge debate over, "i could use this money to pay off my school loans faster, or i could buy new wheels"

and this is keeping me from doing so much with my car it sucksss.
Let me start with this is not the most sound financial advice, but excellent life advice. Life is a balance between planing for the future which most people will have, and living life now because you only go around once. My wife and I both had school loans and they are the scourge of the country. Times are a bit different now and I was able to do better with investments than the interest on the loans so I made my normal payments and then latter I payed them off in a lump sum right before the great recession.

Me personally I'm of the alternate extra loan payment and car parts way of thinking. If you can come up with a similar amount to pay off loans as you spend on wheels this year then I'd say go for it. This way you are living life now and reducing debt quicker. If not you need to really think about it before buy want items.
 

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If you are paying 7-10% plz look into consolidation, you can probably get them down to about 4%.
It really depends on what types of loans they are. About $25k of my debt was govt and I could only get it to something like 6.5% AFTER consolidation. The private ones really just depends on your situation. Banks don't really care to give people lower interest rate on unsecured debt (no house, expensive cars, etc...). You also can't consolidate govt and private loans either...

Having the amount of debt others are talking about here is actually quite normal in the engineering world. Some people land decent gigs after graduating, while others get stuck in $50-$60k/yr jobs for awhile. Living in a city, rent, and that school debt leaves you with not much to spare... People don't tell you before college how hard it is to have that debt and only make $50k a year. If I didn't land on some good opportunities I'd still have most of that debt festering yet.


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Discussion Starter #16
It really depends on what types of loans they are. About $25k of my debt was govt and I could only get it to something like 6.5% AFTER consolidation. The private ones really just depends on your situation. Banks don't really care to give people lower interest rate on unsecured debt (no house, expensive cars, etc...). You also can't consolidate govt and private loans either...

Having the amount of debt others are talking about here is actually quite normal in the engineering world. Some people land decent gigs after graduating, while others get stuck in $50-$60k/yr jobs for awhile. Living in a city, rent, and that school debt leaves you with not much to spare... People don't tell you before college how hard it is to have that debt and only make $50k a year. If I didn't land on some good opportunities I'd still have most of that debt festering yet.


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were 2 years out now and i think 95% of my classmates are making between 50k-60k. i think thats the difference between east coast and west coast, engineers seam to make a lot more on the west coast.
 

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Make a budget and resist temptation is all I can say. The more you can put into your student loans now the more you will save in the end. The interest rates are ridiculous and you'll save thousands by knocking down your principal early on. What I do is budget a certain amount per month for my loan payment and try to make that more than the minimum payment. In my case I set that budget to twice my minimum, but I know a lot of people have a worse situation than I do. Choose whatever extra amount still gives you some savings at the end of the month. Since I have 4 loans (one for each year), I apply the minimum amount required to each and then throw the leftover budgeted amount to the loan with the highest interest rate. If all of your loans have the same interest rate, throw the extra money onto the loan with the lowest balance (that will give you a quick feeling of reward as you close it out). Using this method I've already payed out and closed one of my loans within 1.5 years of graduating. Throw whatever is leftover into a savings account and use that to splurge on car parts when you have a comfortable amount saved up. I know it sucks not being able to do up the car right away like many awesome builds here on the forum, I'm in the same boat!
 

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I'm in that boat. I graduated with about $30,000 in loans almost 3 years ago. At first I was just paying the minimum payments and driving a cheaper lease, but then I got a better job and financed my ST. I paid about $2,500 of my student loans each year the first couple years out of school but after getting a nicer job last year and winning a court case for diminished value of my car, I was able to pay over $10,000 last year. I don't know about you guys, but this basically just seems like I am flushing money down the toilet and not seeing anything from it so I am perfectly fine using some of my income on building my car because I NEED something tangible I can enjoy while I am flushing money away. If I were still only paying that $2,500 a year, I probably would not have spent so much on my car last year, but every time I drop a grand or two on student loans, I buy something for my car to make me feel better lol.

I feel like a modified version of "All work and no play makes Jack a dull boy" fits this situation. Maybe "All loans and no toys makes Jack a depressed boy" lol if you can afford it that is.
 

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Discussion Starter #19
personally for me i needed to get the car, bc exactly what u said, i worked 7 days a week, and had zero to show for it.

besides the ST my next largest purchase in the last 5 years was my girlfriends bday present that was like 350 lol
 

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It really depends on what types of loans they are. About $25k of my debt was govt and I could only get it to something like 6.5% AFTER consolidation. The private ones really just depends on your situation. Banks don't really care to give people lower interest rate on unsecured debt (no house, expensive cars, etc...). You also can't consolidate govt and private loans either...

Having the amount of debt others are talking about here is actually quite normal in the engineering world. Some people land decent gigs after graduating, while others get stuck in $50-$60k/yr jobs for awhile. Living in a city, rent, and that school debt leaves you with not much to spare... People don't tell you before college how hard it is to have that debt and only make $50k a year. If I didn't land on some good opportunities I'd still have most of that debt festering yet.


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I guess the student loan market has gone through the roof in the last 10 years because IIRC, my government subsidized loans were about 2.5% and my private loans (once consolidated) were around 4%. Looking back, I could have made better returns in the market and paid them off slower, but I didn't really understand that then, I just saw it as more money I get to take home every month. BTW, you act like $50-60k is nothing, $60k is what I will max out at on my pay schedule in about 15 years. Soooo, although your loans are higher, your salary is too. I'm sure in Philly your cost of living is quite a bit higher though, so I guess that probably takes that away. What does a 3 BR house cost in a respectable neighborhood there?
 
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