Tuesday, November 18, 2008

I haven't written in a few days because I am in a bad mindset financially. I have been contemplating buying a house, but determined that my student loans are so outrageous that it scares me to take out any more money. I currently have just over $105,000 in student loans and have 23 more years of payments. No bank or company will consolidate my private student loans which are at a variable interest rate. While the market is down, so is the interest rate, but as soon as the ecomony is booming again my rates will skyrocket. I know there is tons of advice out there stating that you should not repay your student loans faster than necessary,but I cannot stand it. At this rate, I will be over 50 before they are paid off and that is unacceptable to me. Thus, I believe that I am going to take next year and aggressively pay back my student loans. I understand that it is still going to take several years of aggressive payments before it is paid off, but I cannot stand it hanging over my head. At least with a house, you have something to show for it.

2 comments:

Strange Bird said...

If interest rates and the economy are actually linked that way, then when your rates do go up later, you should find options to consolidate. Hopefully.

I know what you mean, though. I think I will also owe $100K when I graduate (it would have been less, if only the job market weren't so bad!), and I am having a hard time imagining buying a house and starting a family with that kind of debt.

Britt said...

I get so frustrated too...my school debt just seems to be there all the time, and I pay and pay and pay and pay and seem to make little difference due to all the interest I'm paying. When it's all gone, (besides my education) I'll have spent all that money and have nothing tangible. Argh! Can we be independently wealthy already?