Yesterday, we paid $2,142 to one of our student loans. This loan had a $30 a month payment and 6.8% interest. We were extremely excited to get this loan paid off since it is a higher monthly payment due to the interest on it.
Next up, we are going to work on a $2,400 student loan with 6.8% interest and a $31 a month payment in which $18 goes to interest and $13 to principal.
It is easy to see how many Americans will take student loan debt with them into their 30's. It seems like all of the payment goes to interest and none to principal.
Also, I will be reorganizing the loans on the side of the website. Rebekah's loans were grouped according to monthly payment. Unlike mine, where I can designate how much I want to pay on each loan. So, it will take a little longer to see some major progress happen, but we are motivated to get these loans gone! Hopefully we will see a big difference soon.
Sorry for the short post. I have to get ready to teach. Hope everyone has a great day!
$13,000 down and 14.5% done!
Enjoying your blog! I love watching others progress...it's so motivating!!!
ReplyDeleteGreat job on knocking out the loan!!
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ReplyDeleteSorry, perhaps I misunderstood, but the payment is $21, 18 to interest, 13 to principal? That'd make the payment $31. And I'm with you; those small payments are terrible, though very manageable. It may seem they intend well, but they're just trying to squeeze every bit of interest they can out of you.
ReplyDeleteI am sorry...Typo! Fixed! They are manageable, but it is easy to see how some people may feel like they are never making progress on their loans. Paying $13 to principal will get you no where.
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