If i actually had money and a good job, a 20,000 school loan would be payed in 2 years?

Question

Would i be right in saying that a 20,000 dolar could be paid in about 2 years if i payed about 2000 amonth? And is that realistic? I mean, now i live with my parents and i have never lived alone...

I bet it's harder than i think. So, does it really take about 30 years to pay it?

I graduated in 2003 and then they started charging me, i payed 300 a month for about 2 years, and then 150 the next few months.. then now i don't pay nothing cause i'm unemployed.
But when i was paying , i wasn't seeing any reduction in the total loan amount. Cheeses, i wonder if it ever goes down

Answer 1

Yes you can do it, but a lot of it depends on your interest rate on your loans. Go to this site and it can give you a realistic idea of how much you will have to pay monthly in order to pay off your loans: http://www.finaid.org/calculators/loanpayments.phtml

I did a quick calculation, and it said that in order to pay back $20k in two years, assuming an 6.8% interest rate, you would have to pay $893.64 per month, and you'd be done in two years. If you do this, you will only end up paying $1447 in interest over two years. But if you only pay $250 per month, it will take you 9 years to pay it off, and you'll be paying $6800 in interest.

Since you're at home, pay it off now, and get this debt off your plate. I know it can be done, because I had $24k in loans and I paid it back in ~2.5 years. I lived at home too, and I put most of my paycheck towards my bills - it worked!

Good luck!

Answer 2

They loaned you the money to get through school. Upon completion, they assume that you are gainfully employed from the education they provided you.

During that time, interest WILL accumulate.

It will go down, as long as you pay faithfully every month. I paid mine off.

Answer 3

maybe.................