I feel a panic attack coming on...

**rachelMcK** · 07-19-2006, 02:06 PM

So I just recieved my invoice for the student loan I will be recieving in September. They are giving me more than I thought!! That's all well and good except I have to pay that back! That brings our debt to a total of 40,900. I think I'm gonna cry! I called to see what I can do, but they said I can't reduce it. Its ridiculous. Half the students can't get government assistance and those who do, have to go seriously into debt when they are finished school.

So what do I do?

We still have credit card debt to pay off. Tomorrow, I'm paying off one card completely and putting $100 on the other. Then we can work on the loans. But I'm getting married in a month and we still need to buy the rings and get the licence as well as pay the officiant for the ceremony. EEK!!!

All of this has just crept up on me!

The worst part is constantly telling DF that "We can't afford it". Its so frustrating because things we did a year ago we just can't do now. I guess I'm just having one of those days.

Any advice?

**Edelweiss** · 07-19-2006, 02:11 PM

When you get your student loan disbursement, just make a payment in the amount that you don't need.

**MrsB** · 07-19-2006, 02:13 PM

Rachel,
First of all, congratulations on your upcoming marriage!

Now for the student loan..I don't know how that works so take what I'm going to say as you may. lol But I was wondering, if the loan is for more than you thought, then does that mean its for more than you need? If so, can you take the extra money from that loan and go ahead and put it right back towards the loan so that in the end you still only have to pay back the amount you had originally planned on?

MrsB

**MrsB** · 07-19-2006, 02:14 PM

Opps I guess we were posting at the same time.

**rachelMcK** · 07-19-2006, 02:17 PM

Well, there you go. I was freaking out so badly, I didn't even bother to think about that. Thanks so much!! I feel kinda dumb now.

It still leaves us with a hefty amount of debt,oh well, as long as its not as much as I thought!

**ironmaiden** · 07-19-2006, 03:17 PM

Use a mortgage loan calculator to figure this out.

But if you take out a bigger loan than necessary, then pay a huge chunk at the beginning - the money you didn't need, your monthly payment would be higher than if you took out the "right" amount. However your total interest will be shorter. Why? Because paying off that big chunk shortens the length of the loan. Example: a $10000 loan where you pay off $3000 on day one, actually turns it into a 7 year loan instead of a 10 year loan.

Try http://www.ebmortgage.com/calculators/
Select the Monthly Payment Calculator
And fill in the amount, interest rate, loan term.
Then write down the answers for total interest paid and monthly payment.
Then do it again this time putting in a dollar value for one-time prepayment amount.

**my4littlebuffaloes** · 07-19-2006, 05:21 PM

Well do you have to start paying it back right away? My dh's student loan we didn't have to pay back (and it didn't earn interest) until 6 months after he graduated. If this is the case, I would stick it ALL into an ING savings account and only pull exactly what I needed. Then when it comes due, you will have earned a little interest and you can pay a big chunk then.

Jennifer