About 20 years post-undergrad, it's clear to me that my loans grew from a combination of my poor financial decision-making and a high interest rate
I graduated from Miami University in 2000 with $17,000 in student loan debt. Today, that loan has grown to $53,106.35. Yes, it's still the same loan, almost 20 years later.I have a total of over $96,000 in student loan debt, and I don't regret it.When I graduated, it was before the 2008 recession and before moving back in with your parents was standard for recent grads.I had no idea how to budget.
I made sporadic payments and tried to keep up. Once I moved to Washington, DC and started working a commission-only job , I got behind. Really behind. As in student loan default.What I didn't realize is that student loan servicers offer a lot of repayment options. They only do that if you take the time to talk to them, though. At some point around 2006, I was smart enough to pick up the phone and talk to the person on the other end.
And that's how that loan ended up with a $53,000 balance on my undergraduate loan. That, and the 8.125% interest rate.. I've been able to do that, despite the high balances, due to income-based repayment.Income-based repayment arrived late, but I've taken advantage In 2009, income-based repayment plans were introduced, and that has been a game-changer. You can choose fromnow, and your payment is based on a percentage of your discretionary income. You pay for 20 to 25 years, depending on when your loans started . After that, the rest of your balance is forgiven.
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