(I had no idea where to post this, so sorry if it is in the wrong category!) Currently I am going for my master degree (dual certification) in specual ed. cross-categorical and elementary general ed. So far with my bachelor degree and this year I have about $30,000 in student loans. I am planning on graduating in December 2010, which means I will probably have to take out more student loans when I student teach next fall since I will have to quit my day job. The deal is that with the $30,000 out so far, it is estimated that I will be paying back approximately $400 a month (plus more if I take money out next semester). My question is, is/was anyone else in this same boat as me with lots of student loans? And, once you got your teaching job, was it difficult to pay back the amounts they ask for? I am just worried because I know that teachers don't make a lot to begin with and that I will not be able to pay back the amount they want (I do not want to defer my student loans and let the interest accumulate). I suppose I am just looking for some reassurance... anybody have personal stories to make me feel better? Or is it as bad as I think?
Congrats on your Masters, sorry you are worried. Yes, your loans are a lot to repay and the salary differential between Bachelors and Masters means you'll be repaying it for a while, but hopefully you're a better teacher and the work will be easier because of it. There is teacher loan forgiveness if you're willing to work in an underserved school for five years, worth $17.5k http://studentaid.ed.gov/PORTALSWebApp/students/english/cancelstaff.jsp
The type of loans that I took out allowed me to "earn my payments" by teaching in a low income school. So for three years I deferred my payments and then the dept was paid off.
I'm right there with you...but with more loans! I paid as much as possible during my first year teaching, then I was laid off so I was able to put them into an economic hardship deferral....but that' can only last for so long. So good luck and try to pay as much as you can each month, even over pay if you can so you can cut down the overall interest!
I am in the same boat, so I know how you feel. Many of my colleagues had their education paid for by their parents, so I feel a ton of jealousy towards them. My advice would be to start paying back with your first paycheck. Don't wait until your 6 month deferment is over. It was much harder to make my regular paychecks, then suddenly have these huge payments taken out. It would have been easier if I would have been paying them from the start because then I wouldn't be missing out. It's been several years, and now I don't even notice the "missing money". I do make significantly more per year by having a Master's as opposed to just a B.A., so I use my raises to increase my loan payments. Someday I'll be free!
I did take out that loan (they will pay it back if I work either in special ed. for 3 years or in a low income school for 3 years). However, that is only $4000, which I know is a lot, but seems so small compared to the $26,000 that I will be paying off on my own! Someday, that is what I need to keep telling myself! Someday!
The most important thing is to know which kinds of loans you have. Many people will have two or more types of loans, each with its own rules. Perkins - The entire amount can be cancelled in return for teaching service. A certain percentage is cancelled after each year of teaching service -- very attractive in today's uncertain job market. You may teach at a low-income school OR teach certain specialty subjects. Start repaying this loan last: the grace period is long (9 months), interest accrued during the grace period is paid by the government, and the interest rate is low. [The other poster's advice, about starting to repay before the end of the grace period, is bad in this case.] Stafford - Either $5,000 or $17,500 can be forgiven in return for teaching service. Forgiveness occurs only after five consecutive years of teaching service. A break in service, a layoff or a transfer to a non-eligible school restarts the clock -- a serious risk in today's job market. You must teach at a low-income school, and for the larger forgiveness amount, you must ALSO teach certain specialty subjects. If one of your Stafford loans is subsidized, start repaying that one second-last: interest accrued during the 6-month grace period is paid by the government. [The other poster's advice, about starting to repay before the end of the grace period, is bad in this case.] If one of your Stafford loans is unsubsidized, start making interest payments (at least) as soon as possible, as you are responsible for the interest even during the 6-month grace period. The Stafford Loan interest rate is moderate. Other - PLUS and private loans are much less generous. Do not expect to have these cancelled/forgiven for teaching service. These loans are the first priority for repayment, and for extra payments. The interest rates range from high to very high. Some state governments have additional loan forgiveness programs for teachers. California's APLE program is an example. While the federal programs are on a secure political and financial footing for the life of the current administration, state programs are in a more precarious financial position. With any loan foregiveness program from any level of government, it is important to realize that the benefits are prospective, and can be taken away at any time, until your money has acutally been paid out. A very new development in student lending is the Income-Based Repayment (IBR) Plan. (Older, less comprehensive plans known as ISR and ICR also remain on the books.) IBR may be a good choice if you are worried about making your loan payments during the first few years of your teaching career. It is available only for certain kinds of loans, such as Stafford loans. If you qualify, your total payment will be limited based on your income and the size of your family. The payment amount will be adjusted as your income changes. If your payment amount does not cover interest (so-called reverse amortization, i.e., your debt grows over time), the federal government will cover the difference for three years, for subsidized Stafford loans only. After 10 years of making payments under IBR AND working full-time in public service (this includes teaching), you might be eligible to have any remaining debt forgiven. However, the usual caveat appies: in today's economy, junior public service employees are at risk of being laid off. After 25 years of making payments under IBR, any remaining debt is forgiven. All in all, it's not a terrible picture, but there are more sources of uncertainty than there were even two years ago. Those who have already borrowed money for teacher training have no choice, but anyone who is reading this before making the decision to become a teacher should consider the net cost (wages - education costs - opportunity cost while in school - opportunity cost while working at the low end of the pay scale). In my locality, a transit bus driver with no post-secondary education earns more, over the course of his or her career, than a teacher.
I am currently teaching at a low income school that qualifies for forgiveness for the Stafford Loan. I am interested in going for a master's degree, but the Stafford loan requires that I go on at least a half time basis to qualify. What is half time basis? Is it 3 or 6 credits? Thanks.
I pay about $300 a month. It sucks, but I'll get loan forgiveness in 4 years. You need to teach in a Title 1 school for 5 years. It can be multiple Title 1 schools.
My student loan debt is INSANE My parents made a deal with me... "We will pay off your first two years if you stay in Ny and go to a community college but no matter where you go the other two years (or more if needed) is yours..." Grand total $6,000 (not my problem) Well I decided that for my 2nd two years I was going to leave NY and venture off to FL. Grand total of OUT OF STATE TUITION (for only two years!!!!)(ARGH lol)...... $71,417 My total payments SHOULD be around $650. I have 4 separate loans. (3 private and 1 stafford) The stafford loan is in economic hardship. My private loans are supposed to be about $424 a month BUT I have put them into graduated payments so they are only $204. Not like that matters I still have trouble paying. =( I am not teaching yet, hopefully when I do it may make things a little easier. My job now stinks lol.
Wow that is some major student loan debt! And I get ticked about my $6,000 loan that I pay like $60 a month on! I figure I'll have the loan until I die though because there are other things I'd rather pay off first. My parents paid for the last three years of my schooling because we received half off tuition at OSU. I have told my boys that if they want me to pay for college, then they have to go to OSU. Otherwise, they pay! lol. way to support my alma mater!
I actually freaked out at my dad yesterday. The loan that he pays (in my name) is only $55 a month. He just told me he hadn't paid it for 3 months!!! Seriously... that's my credit score he's screwing up AND it's on automatic withdrawal for 6 months (all it can be since he's not the primary acct. holder)... I remind him to put it on "oh I'll do it later"..... my words to him "dude if I can find $204 a month to pay my student loans you can find $55"
:wow: That hurts! That is one reason I didn't want to go out of state, I can't believe how expensive it is, ridiculous really. :sorry:
I have one 11,000 Stafford Loan. I'm getting teacher loan forgiveness on it in 3 more years. That, and being almost free of credit card debt is what's saving me right now. The only way to be able to live on teacher's salary is to be debt free. & I tell my students at school if they want to be teachers, try to do it without taking out loans! Of course, middle schoolers don't have much concept of money/budgeting, lol. If I had a huge amount of loans I'd probably have to live with a roommate instead of being able to have my own small 1 bedroom apartment.
I have $40,000 in loans, and I'm going to start my master's this fall, which will add about another $13,000. I'm currently doing the Income Based Repayment plan, so I'm hoping to qualify for the loan forgiveness in 10 years. Under the IBR, I pay $194 per month. However, when my boyfriend and I get married someday, I don't know if I will qualify anymore, since you have to be under "partial financial hardship" or something. Unfortunately, I don't teach at a school that qualifies for the other loan forgiveness program because my school is only 6% free/reduced lunch.
I hate student loans, but I'm really not at liberty to complain about them since I knew what I was getting into... My monthly payments are manageable on my salary. Fortunately, my grad PLUS loan has a super-low interest rate and I plan on having it paid off by this summer. Stafford loans? Yeah, those will take a while! Come November, though, I will really start to feel sick as we start paying on my husband's student loans. Law school isn't exactly cheap, either.
Get married. (Slightly joking). The week we got married my DH paid off all my school loans without my knowledge. About $16,000. I have such a wonderful husband.
Congrats to you!! I'm glad you have a good hubby. My hubby is the one with $16,000 in student loans. And we're both teachers so we're just looking for 4 more years so that we can get $5000 forgiven. I wish there was some way to get the rest forgiven!! Hmmmm.... any ideas? AND I really want to get my Master's ASAP, but cannot imagine paying more loans per month. So I'm looking into grants for that. I am determined to find the cheapest that I can!!!
6 hours would be 1/2 time for undergrad, but I'm considered a full time graduate student and I'm taking 9 hours a semester. Graduate school is different, so I'd check with someone at the school to make sure.
Darn, i'm already married. Maybe I should've married for money instead of love.. what was I thinking?! Haha, just kidding. But that is awesome that your husband paid off your student loans.. what a great guy! :thumb:
I got in a grant program that's paying my first 6 graduate hours for me. After this semester, it's out of pocket, but the local state school only charges 900 for a 3 credit hour graduate course. Through some creative budgeting and saving, my goal is to just pay cash as I go for my masters so that I don't have to have additional debt for it. Knock on wood! (keep in mind, I have no kids or family to take care of, so my expenses are pretty minimal and it's easy to cut costs for just one person)
