Hi, I’m kind of freaking out and could really use some honest advice.
I just finished my freshman year of college and I took out about $33,000 in private student loans through Sallie Mae. At the time, I was planning on becoming a lawyer, so I justified the cost in my head because I thought I’d be able to pay it off later.
But now I’m not sure I want to go to law school anymore. I’ve been thinking a lot and I feel like I might actually want to become a teacher instead, which obviously makes a lot less money.
On top of that, I’m just now realizing how bad my loan terms are. My interest rate is around 13%, and after reading more about Sallie Mae, I feel like I got myself into something really predatory. I didn’t fully understand what I was signing at the time, and now I feel stupid and honestly kind of scared.
I keep doing the math in my head and it feels like I ruined my financial future before I even really started it. I don’t know if I should change my major, stick with law to try to justify the debt, or what.
Has anyone else been in a situation like this? Is this as bad as it feels right now, or am I overreacting? What would you do in my position? and what should I do for my next year of school?
Did I ruin my life at 18 years old?
byu/Accomplished_Egg3888 inStudentLoans
Posted by Accomplished_Egg3888
3 Comments
You have to move to a state school before taking any other classes. I’m sorry op somebody should have stopped you.
If you continue with private loans you will have to get a higher paying job.
Did you not have access to federal student loans, Pell grants, scholarships? What’s your tuition rate at your university?
My immediate impression, which may change with further information, is that you simply CANNOT afford your undergraduate institution. A 4-year degree and +$100,000 in private loans at 13% APR is insane and life ruining. You very likely need to either transfer to a more affordable school, take community college courses, or both.
It is good that you’re recognizing the problem now. You have options to mitigate the situation, and still have a good education and life. Deep breaths.
It’s not ideal but better 33k in private loans than more than 4x that amount: Stop digging a deeper hole.
Live at home. Attend community college. Borrow the max amount in federal student loans (up to $6.5k for dependent second year students).
As much as possible pay down the private loan. Try to refinance private loan at a lower fixed interest rate. https://www.risla.com/refi-student-loans
You may want to go to school half time and work full time. You may also want to take time off school to work and pay down the Sallie Mae loan.