We Could Be Paying Student Loans Until 2038

According to this site at bankrate.com, if we continue only paying the minimum, we could be paying our student loans until 2038.







Yes. Actually, that number comes from this one stinker of a loan (check out that doozy of an interest rate):

Screen Shot 2014-02-01 at 11.09.08 PMUm. Yeah. So, this really helped me make some decisions about where our money would be going after the car is paid off in October! Definitely need to pump all that money into this one loan to get that baby taken care of. Private student loans: what a racket!

Then we’ll start sending all of our Debt Eradication money to this account:

Screen Shot 2014-02-01 at 11.10.00 PM

That was calculated with the minimum payment (which is what we’re currently paying).

If we are able to spend around $900 a month (which I hope is a conservative estimate, but who knows), instead, we get this more satisfying result:

Screen Shot 2014-02-01 at 11.10.43 PM

Then, we’ll tackle my loans (yes, those above are all my husband’s loans…. geesh):

Screen Shot 2014-02-01 at 10.51.21 PM

Of course, we would be able to pay more than the minimum on those at that point, so let’s project ahead and imagine what it would be like if we could pay $900 a month on these….

Screen Shot 2014-02-01 at 11.31.18 PM

Something else I have to remind myself is that when we actually have the ability to start paying these down, the overall balances will be lower (perhaps not much in some cases, but at least enough to make a difference in these calculations). I’m not going to geek out and do that much math, but I do think it’s worth really examining the timeframe and the amount of money going down the drain in interest.

What does your student loan repayment timeframe look like? It’s almost guaranteed to look better than this, amiright?

– M.

P.S. This is not a sponsored post. You probably knew that, but still. Yeah.


6 thoughts on “We Could Be Paying Student Loans Until 2038

  1. I put your numbers in at Dave Ramsey’s website (the debt snowball tool). I wasn’t clear how much extra you were putting towards your debt now… but if its $600 (figured since you were planning $900 for debt 2)… the payoff date was August 2020! 🙂 (A few years earlier than your estimate) 🙂

    Here is a link if you want to check it out: https://www.mytotalmoneymakeover.com/index.cfm?event=debtSnowball&ictid=mytmmo.pdslp#How do I apply extra payments?


    • I’ve done the Debt Snowball tool, too! It’s that pesky 8+% interest rate on that stupid $6K loan – I’m itching to pay it off immediately (well, as immediately as we can), except that we’re worried about our car giving out, and having a loan on a car that isn’t functional. But it’s definitely good to hear that 2020 is possible! Who knows what will happen with our house, too — I’ve heard that you shouldn’t pay down your principal if you’re not going to be staying in your home? Do you have thoughts on that? (Not that we’ll be in the position to pay off more than our debt payment each month until way down the line….) 🙂


      • Yes, I always have thoughts and opinions about everything… it’s a curse! LOL.
        Our current situation: paying for a mortgage, but living overseas so we rent our house (with a mortgage). It is a big pain, so there is a good chance we will sell in the next 18-24 months.
        So I have thought over this exact situation multiple times. Every time, I come back with: we will pay less interest by paying down the principle. So, we continue to pay down our mortgage. If we would have stuck with minimum payments… we would be paying ~$475 in interest/month… but we have paid it down so we pay ~$300 in interest/month… so it “saves” us a few thousand each year. Yes, it’s tax deductible so really probably only saving ~$1600, but a savings is a savings! 🙂
        But like you said, it’s a ways down the road for you. So you will probably have a better idea of what will work best for you when the time comes! 🙂
        Yeah, 8% interest stinks, and I can see why you want to get rid of it! 🙂 If you are worried about your car… have you considered paying it off first and/or saving up to replace it when it does give out? So, you don’t have to go further in debt. 🙂
        Best wishes! 🙂


        • Yes, we’re definitely going to pay down that car as soon as possible – I just want to take care of that Citibank credit card first because if the interest comes due, we’ll be in trouble! When we get our tax refund, my goal is to pay down the credit card enough that we will pay it off in June (instead of August, which is the current timeframe), so we don’t get hard up in the summer, when we make less money (since I’m a teacher). But hopefully we won’t have any financial issues in the summer, and we can continue making the same amount of debt payments, just to the car loan instead!

          We plan to pay off that car, then start saving (next fall) towards a new car so we don’t have to ever have a car loan again! And then if the car gives out before we have enough saved up, at least we’ll have a decent down payment for a new (used) car.

          Great thoughts about the mortgage issue – from reading your blog, it sounds like you guys are making major headway on your own mortgage! I hope things settle down for you on that score. It’s hard to plan for the future when jobs/locations are unknown factors.


  2. That meme would be funny… if it wasn’t so close to reality.

    There are a lot of great free online resources for people to use today before, during, and after they get into debt so that they can be more prepared to buckle down and pay up!


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