Hello everyone,
I made this a throw away account because I am ashamed and embarrassed of my situation, but please, I need guidance. I graduated from a 4 year private university in the spring of 2014. I haven't paid any federal loans off. Since then, I paid off 10k in credit card debt. I'd like to start on this mountain now.
I have $33k of federal student loans, all growing with interest. In detail, I have subsidized stafford loans totaling $19,000. I have unsubsidized stafford loans totaling $14,000. The total is divided between 9 loans. 6 of them have an interest rate of 3.8%. 3 of them (about 10k) have an interest rate of 6.8%.
Now, the scary part. I also have $50k of parent plus loans. The parent plus loans range from $8k - $16k each, with a fixed rate of 7.9% interest. The interest is growing fast on these.
Everything has been in deferment - forbearance since 2014.
My major was Intercultural Studies with a certificate in TESOL. Right now I am living and teaching in South Korea. I make about $35,000 a year USD. I don't own a car, I don't have to pay any rent. My monthly bills are usually $150-$200 and the rest I can pocket. I think I can start with a monthly payment of $1,000 towards the loans.
I am hating myself every day because I know I could have paid off so much already if I had tried. I know I spend too much, I am not disciplined in terms of money and spending. But, I want to change, because I cannot live with this feeling anymore.
My questions: 1. I don't know if or what I should consolidate? 2. If I make monthly payments, will it even touch the loans? (There is so much outstanding interest, where will my payments go?) 3. How aggressively should I pay them off vs. saving money? I have some emergency savings, but that's pretty much it. I don't know if I should pay off as much as possible, and have nothing saved... Or pay off some, and save some money for my future. 4. Should I pay off the sub/unsub loans first? or the parent plus loans?
I feel like an utter idiot because my younger self was convinced that going to a small private college for the 'experience' was worth it. By no means could I afford it, but just like magic we were able to borrow 15-20k per year.
I've listened to a lot of Dave Ramsey, I read a bit on Student Loan Hero. I'm thinking of starting the debt snowball, it's just hard to believe that I will ever pay it ALL off. Let me know if you need more information, and thank you in advance.
Submitted November 27, 2017 at 10:58PM by pkj2017 http://ift.tt/2Ah4HgQ
