Hello. I currently owe close to 138k to Sallie Mae in student loans. The interest amount varies but it's between 4.5 to 13.5%. I would owe 1.5k a month in payments and that is something I simply cannot afford. I have federal loans which equal to about 30.5k with an interest rate between 3.73% and 6.53% (subsidized and unsubsidized). I would owe about 100$ on this loan.
What is my best option ? I feel like I'm drowning and I don't know what I can do. I earn about 35k a year and I'm relatively new at my job. I just don't know where to do from here.
Student Loans – Federal and Private
byu/xayahthethot inStudentLoans
Posted by xayahthethot
3 Comments
I would first keep your federal loans federal. I think that’s going to be important due to your debt income ratio. With the federal loans there are certain repayment plans you can apply for and forbearance that isn’t always available from private loans.
With the private loans, it may be best to try and refinance some of them depending on the interest rate and your credit score. You may not be able to but it’s worth looking into for the higher interest loans. If you have a private loan at 4%, I wouldn’t refinance it. You’re not going to get a better rate. But if you’re offered a 8-10% refinance on the private loans that are higher than that, it may be worth doing. But I would talk to your loved ones before making any final decisions.
The only other thing I want to say is it’s normal to be scared in this situation. It’s very scary to have this realization. I had 150K debt out of college and likewise only a 35K job to show for it initially. You’re not alone and where you are now doesn’t have to be where you’re at years down the road.
What is your degree in? You need to increase your income threefold, fast. How come you can’t find a job paying $80k+?
138k? What in the world did you go to school for