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Living on a Budget, Saving Money/School loans vs. Moving out

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Question
Hello,
  I would like guidance in which school loan plan I should choose, not just for the purpose of paying less interest, but also to weigh in what my odds are for getting a better loan for a house down the road.

Background: I just got a job working as a New Grad RN where I'll be making ~$50k annually.  I am 32 yrs old living with my parents, sharing a room with my seven year old daughter!  I would like to move out asap, BUT I have ~$20k in credit card debt (which got me through nursing school) and ~53K in school loans which I have to start paying next month.  Before I move out, I'd like to pay as much of my credit card debt down as possible, so maybe I can be out by next summer.  

With that being said, which school loan do you think I should choose with the anticipation of me having a lease/rent next year too which will probably be ~$1300 tops and possible loan forgiveness plans in the future?

Standard: 120 payments of $574 ($14,918 interest $68,792 total)

Graduated: 24 payments of each - $383, $469, $574, $703, $860 ($17,775 interest $71.649)

Extended: 300 payments of $318 ($41,270 interest $95,144 total)

Extended Graduate: 24 payments each - $228, $244, $261, $289, $299, $320, $342, $366, $392, $419, $448, $480, and then 12 payments of $513 ($50,033 interest, $103,907)

Thank you so much!
CJ

Answer
In this very low-inflation environment (and it may stay this way for quite a while, given the stagnant economy and FED manipulation), in real dollar terms it makes the most sense to opt for the STANDARD or GRADUATED payment plan; each of which offers substantially less principal Plus interest that needs to be paid over the life of the loan.

IMO, you should aim to stay out of debt (or reduce it) to the largest extent possible.  It may not be the ideal situation living with your parents, but if it is palatable, you have a real opportunity to knock down your credit card debt, while living with cheap (or no) rent costs (I'm being presumptuous here).

Not sure if your student loans offer a pre-payment option, but if they do, and you can afford it, you may want to take advantage of that to knock down the principal faster too, and effectively reduce the term of that loan.

Best of luck!

Living on a Budget, Saving Money

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Douglas Hayman

Expertise

I will gladly answer any and all questions relating to family, home, or household budgeting. I consider myself a pioneer and expert in the area of disciplined budgeting.

Experience

I routinely manage my home budget using my home-grown system. Additionally, in corporate America, I managed a multi-million dollar budget for a technical Fortune 100 Financial Services company for many years.

Publications
(1) "Reduce Your Monthly Budget By 20% Using Simple Budgeting Strategies" (2012) ISBN # 978-0-9081613-1-1 http://www.BudgetSurgeon.com (2) "How to Maximize Traffic to Your Website" (2007) - ISBN # 978-0-9801613-0-4 http://www.expss.com/ebooks/WebsiteTraffic.htm

Education/Credentials
B.A., Economics, Stony Brook University, Stony Brook, NY M.S., Computer Science, Stony Brook University, Stony Brook, NY

Awards and Honors
B.A. with Honors, Economics, Stony Brook University, Stony Brook, NY

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