Author Topic: Solving a Student Loan Debt Emergency  (Read 2679 times)

cmeganmac

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Solving a Student Loan Debt Emergency
« on: June 24, 2014, 10:22:27 AM »
My husband and I are little baby mustachians. We just found the blog about a week ago but we're all in. I'm pretty much obsessed. Anyway, we're in a student loan debt emergency right now. I'm currently writing my dissertation (hence the student loan debt emergency). The good news is that I can pick up some part time work while I write this thing, or I could possibly catch a professor gig while I'm ABD. I guess my question is, should we slam all the money we can get on our debt, or should we be saving some? What is the best way to get out of a debt emergency? Has anyone on here tackled a student loan debt? I love the Harvard guy's example but we simply don't make that much money.

nereo

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Re: Solving a Student Loan Debt Emergency
« Reply #1 on: June 24, 2014, 10:26:32 AM »
Hello cmeganmac, and welcome :-)

To better assist you, could you tell us a few more things, specifically:
what are the balances on the loan(s)
What are the interest rate(s)
are they in deferment or are you currently paying interest

the answers to those questions will help tailor the advise to you.

As an aside, many people here (myself included) have been confronted with tens-of-thousands in SLs.  A few have claimed to have well over $100k, and in many cases they've managed to pay those off completely.  You are not alone and there is hope :-)

skunkfunk

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Re: Solving a Student Loan Debt Emergency
« Reply #2 on: June 24, 2014, 10:44:51 AM »
Looks like you could use a case study.

You need some way to handle any emergencies that come up. The last thing you want to do is get hit with a car repair and have to put it on a credit card. I suggest having a few thousand dollars on hand and putting the rest into debt.

cmeganmac

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Re: Solving a Student Loan Debt Emergency
« Reply #3 on: June 24, 2014, 11:14:52 AM »
Okay- I'm going to sit down with my husband tonight and write up a case study post. It will take a little bit wrangle all the info. Thank you all!

KatieSSS

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Re: Solving a Student Loan Debt Emergency
« Reply #4 on: June 24, 2014, 11:32:57 AM »
What skunkfunk said. Save a bit of an emergency fund (I had $2,000 in an e-fund while I was paying down debt) and then throw everything you possibly can at the debt.

I'm excited to read your case study and offer more specific advice! In the meantime, you can check out the thread I started in March 2013 where I said I would pay off my remaining $16,500 in student loan debt by the end of the year. I did it, and others followed along and set their own goals. Lots of inspiring stuff in there!