Student Loan Sharks!

*A Must Read for Anyone with Student Loan Debt. Volume 1

Student loan debt is an issue near and dear to my heart. Why? Because I have a large amount of debt accumulated in my Master’s Degree program. Yes, I knew the amount I was financing each semester but I thought I would be able to work hard and pay it off in a few years. Unfortunately, my dream turned into a nightmare!

My first smack in the face came when my new monthly payment was calculated at a whopping $1,000 per month. I was shocked! I called customer service and told them that I needed money to live too or else I would become homeless. I was told that they don’t take into account rent, utilities or existing bills. This is your new payment–like it or not.

I fully anticipated paying off my student loans methodically by paying a little extra principal each month. (You know, like you do for your monthly mortgage to reduce the number of years.) This new amount, however, blew that plan out of the water. Then I asked how much of that payment is going toward principal versus interest? The customer service agent said about $150 spread out over 12 different loans. A quick math calculation in my head make the situation even worse. I was only paying about $12.50 per loan towards the principal amount. I realized that I would never be able to repay these loans off despite how much I sacrificed. As fast as a ninja warrior could kick, I was hit again. With that kick, came the sudden realization that my monthly interest payment was about $800 each month and I would carry these loans well into my retirement years!

I was angry and depressed about my future. All the joy I anticipated knowing that my Master’s Degree would allow me to earn more money went right out the window. Don’t they know it takes more than six months to transition from a lower level position to a higher one? Especially when the current company you are with offers no room for advancement let alone a raise for your educational attainment.

What could I do? My answer came through lots of research online and asking a lot of questions. Look for Student Loan Sharks – Volume 2.

*Picture courtesy of Florida Today and Fort Myers News Press.