Hi there,
I have some questions for student loans (Like, should I pay a bunch now?). Here is my info:
Stafford
1-01 $6,521.26 6.55%
Stafford
1-02 $10,374.18 6.55%
Direct Loan - Sub
1-03 $6,531.49 6.55%
Direct Loan- Unsub
1-04 $9,884.81 6.55%
TOTAL $33,311.74
I have been paying for 3 years and it's a 10 year loan. It started at $41,000. I pay $498 a month.
I am a teacher, so I don't get a ton of money, however I recently moved to Doha, Qatar to take advantage of more money (housing, car allowance, moving expenses paid, insurance, no taxes, etc). I just received my first paycheck of about $8,000 (which includes moving reimbursements, normal checks will be more around $3000). I have $8000 in my account already from selling my car and getting my last paycheck from my previous job. $16,000 is literally the most money I have ever had in my entire life. This is a lot of money for me.
My student loan is the only "real" bill that I have. In my current situation I do need to buy some culturally sensitive clothing ($500 tops, one time expense, I hope!), I need money for groceries (moderately expensive but reasonable... really not sure on this one, maybe $500 for the month), and some cell service ($5 for Republic, plus maybe $30 for local phone). My school pays for a bus, so taxis once or twice a week for groceries. Let me re-word this..
Normal Paycheck: ~$3,000 + $500 Transportation stipend
Bills
Student Loan: $498
Groceries: $500
Cell: $35
Transportation: $100
Eating out: $200
I've only been here for 2 1/2 weeks so these are guestimates. Eating out is super cheap, but we don't do it much normally. We have been more since we moved and we're trying to get to know the area and the other teachers.
I really want to throw all of my savings, or at least most of it ($10,000 or more) towards my student loan. My husband thinks that is a bad idea. He thinks it's better for me to just leave it in my savings. I am some what obsessive about not wanting my debt. He thinks it's not a big deal and that I have plenty of time to pay it off and that doing it now, versus in a year or two, won't make a big enough difference.
Side note: Husband doesn't work right now but doesn't spend much money and has his own savings to use, though I do give him money to spend (still trying to figure out a good allowance :)
Would it make a difference to put a big amount towards my student loan? I think it would, but am I wrong? How much should I do? I am also planning on at least doubling up my payment while I'm here (2 yrs). Please help me do some math here!