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How do you fix a student loan that is over what you originally borrowed?

sassylassy asked:

My student loan has become a hassle to pay for. I have a car payment, rent, cell phone, and car insurance, and not forget gas or groceries to pay for every month. I find it more and more difficult to make even the minimal payment due for my loan. I understand that I am not the only one in this situation nowadays, but if anyone can give me any advice as to help my situation I would be appreciative. Thank you.
Asked on: 2010-02-06 04:20:20


  1. You are overspending. Get a cheaper car, that will reduce your insurance, cut your spending. You will end up having your wages garnished for the student loans and that will effect your credit and your ability to get good jobs in the future. Get a second job.

  2. Ryan M says:

    1) Sell your current car and buy something cheaper with cash.
    2) Move somewhere cheaper or get a(nother) roommate.
    3) A cell phone is a luxury, not a necessity.
    4) Get a second and/or a better job.

    Since that student loan debt will NEVER go away unless you pay it off, you need to adjust your lifestyle. Just from #1 and #3 alone I am willing to bet that I saved you a few hundred per month.

  3. Smiling says:

    Why is the student loan the last thing on your list? It should be the first payment made.
    Grow up!

  4. tudorjason says:

    Have you exhausted all forbearance or deferment options? Or have you inquired about income-based payment plans? If you haven’t, this can be your first consideration.

    I understand your priorities of your bills. Housing, transportation, and food should be your first and most important priorities.

    But perhaps you can stop having a cell for a few months by claiming it is lost or stolen; you won’t have to pay any penalties to cancel if you’re in a contract. Perhaps you can change your grocery spending habits by buying non-brand items, and hunting down and using coupons everywhere possible. Or perhaps reviewing your car insurance to see if you’re getting covered for something you don’t need and get a cheaper rate. And plan your trips or try not to drive as often to save on gas.

  5. You sell your car, so that you get some money for it and no longer have to pay for car insurance, gas, etc.

  6. UW2010 says:

    how much is your monthly payment? are you paying for 10 years or 20 years? your student loan is always more that what you originally borrowed. the reason is because while You were taking out the loan and still in school interest on that bad boy racked up. also after your graduation you have 6 months to get ready to pay your loan back while your waiting for your first student loan bill interest is racking up. you need a forbearance. im not sure if you already used this opportunity but if not i would look into that. also i am also paying back student loans 260.00 a month. what i do is food is limited. i eat very cheaply. try re prioritizing and looking at your finances, look to see whats necessary and whats not. best of luck to you.

  7. LUKE says:

    From experience, I’ve found student loans much harder to pay off than they were to borrow.

    When I was going to college in the 90s, they’d give me over $10,000 in loans each year. No credit check, and many times there was no need. THEN when I graduated, I was unable to afford the monthly payment, so I deferred and deferred and deferred. I’d make a payment here and there, but for the most part I’d defer. In 11 years, the balance increased from $45,000 to $70,000.

    Now I’m doing what I have to in order to make the payment every month. It’s now my top priority in life to pay off this thing.

    One thing I’d highly advise you, make sure you pay your student loan above all other forms of unsecured credit. In fact, pay your student loan over most forms of secured credit. Student loans follow you until the day you die. You can’t bankrupt them, there is no statute of limitations, and they can even garnish your wages and seize a bank account without suing you first.

    Pay all your debts if you can, but if it’s a choice between credit cards and student loan…..pick the student loan every time.

  8. Reena says:

    Your student loan does not go away. You can not discharge the obligation in bankruptcy and this debt does not go away until you pay it off.

    With this said you need to change your outlook towards your financial obligations:

    No. 1 Priority – Pay off student loan
    No. 2 Secure housing and food and pay recurring bills (utilities insurance, etc.)
    No. 3 Save for a rainy day
    No. 4 pay off any other obligations.

    The trick is to avoid No. 4 (your car payment) until you have cleared No. 1 or at least can live comfortably and still have money left for No. 3.

    It is not the student loan that is becoming a hassle…. it is the car payment and the high insurance payment. Now you see where the real problem is.

    Either you make more money and get a second job or you get rid of the car payment and buy a used car until you can afford a new car and the consequent payment and insurance.

  9. HillClimber says:

    Get rid of your car and stop using a cell phone. Also, sell anything else you have you can’t afford. Get rid of your cable TV and move to a lower rent apartment. You borrowed it – you pay it. Or are you looking to be like the rest of the deadbeats that want to stick the taxpayers with their debt?

    Get a part time job. That student loan money did not grow on a tree in Washington D.C. It came out of the pocket of people who work their butt off to pay their bills and their taxes.

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