My StudentLoan is 24K consolidated at 8.5% and 335$mo. for 107pymnts. I need a Saving Acct.and better car.help

Question

I have an '92 van that hasnt died for 8 yrs and Im due for a newer one but I dont want to miss a SchoolLoan pyment. Ive barely started a saving acct. Ive cut my Living expensed low buy not the lowest possible. Im not sure how to Prioritize these 3 things and Im ready to do so.

Answer 1

pay off the student loan. if not, they will garnish your wages.

Answer 2

Cut down more on your living expenses, and Do keep up the student loan payments. You don't want bad credit, because that way, you will not be able to get a NEWER car WHEN you really need it. If your '92 van has no problem (like you don't need to go in and out to a repair shop, keep it as long as you can. You really don't want any more car payment with higher auto insurance (usually with newer model car, insurance and registration are much higher). And when you need one, I suggest you get a Certified Pre Own vechicle too. Yes, like the prior answer, you can go back to school and take at least 6 units the loan will be deferred, but you still acruing interest with Unsubsidized Student Loan (chances are you have both Unsubsidized and Subsidized), and still need to pay it back in the future with more interest accured on it. And you still have to come up with money to pay for tuition and books (believer the textbooks are not cheap nowadays). So keep paying your student loan, and save up some money as much as you can. When you really need a new transportation, get a Certified Pre-own one within your means. Also try to get a better paying job. Just look at the salary as a pie that you need to divide into different pieces and in different sized to pay your bills. The bigger the pie is the more that you have to divide, and possible save more.

Answer 3

One thing you should understand is that Federally Secured Student Loans will never come off of your credit if you default on them. My Mom has a student loan on her account from 1972!

The best thing to do is to make sure you finish school so that you can pay the loans.

You might also think about attending graduate classes if you have completed your undergraduate degree. This is becuase you can defer the loans while attending graduate school.

I would keep a hefty savings account, keep the 92 van. That way if the van breaks you can have some money to fix it. Then concentrate on the student loans.

I sure hope you finished school after borrowing all that money. 8.5% sounds a bit high for student loans. Mine were in the 2.5% range.

Good Luck!!

Answer 4

I always hear them money advisors on the radio say "If you can't make more on the interest of your savings account than the interest you are paying on your loan don't do it"
Paying off any loans is your first priority because it will cost you more than a savings account can make. Think of how much in interest and penalties you just saved each time you make a payment.
Now that doesn't mean that you shouldn't put a little to the side for emergencies.
As to the car you have to sneak that in somewhere of course cause otherwise you can't get to where you need to go to make your money.

Answer 5

See if you can refinance your student loan(s). Student loans are the best kind of debt to have, but only if under the interest rate you pay on other loans.
Call your lender about refinancing, or talk to the financial aid office at the college you went to. Sometimes they have suggestions.

Answer 6

go back to school for anything at least one hour above half time-part time status you can then go back to differed status. I think it is 6 hours or 7 maybe then no more payments try to get a government grant to cover your tuition and save money

Answer 7

you could start an online buisness using free stuff. sell on ebay, write blogs their free, sign up for affiliate programs and post on free classifieds or on blogs.