daddy-poorbucks

4 Comments

  • ilmsf1968@aol.com'

    John

    Thanks for this important information. I have a nice amount of those federal stafford loans myself but I am on the income -based repayment plan. One thing people in this boat need t know is that if a person stays in the income-based repayment plan, and whatever you still owe after 20 or 25 years I believe, is forgiven.
    However, the amount that is forgiven is sent to the IRS and that amount is considered income for that year so one will have to pay the IRS. THEN it will be over.

    Hopefully more people will find this site. Very useful. The one thing that bothers me abut the U.S. is they see you as a criminal if one has bead credit. Really pathetic. However, I guess it depends on where one is in life..

    Thanks for sharing

    Reply
    • Daddy Poorbucks

      Great points, John. Not only about loan forgiveness but also certain stigmas with credit. People come from many different circumstances leading them to where that are at. We can’t change what happened but we can learn and move forward – I did. And as such, I’m here to help others do better than I did and also get to where I have gotten to or better. That’s my redemption.

      Reply
  • divinepowersforu@gmail.com'

    Satz

    Hi,

    Very well enunciated post on Student loans and how tackle it. I strongly feel every child / student should be first given lessons on ‘financial prudence’ before they take a loan. Majority of the students have no idea how to deal with debts or how to manage their money. They will spend recklessly, spend on credit cards and eventually land up in a debt trap.

    The strategy of lowering the monthly amount and stretching the payment schedule has to be followed judiciously, I personally did that. I reduced my monthly outflow towards loan and invested the monthly surplus amount in an index fund. Over a period of few years as the stock markets soared, I used the money to prepay my student loan. Debts can create a huge (permanent) hole in your pockets if not managed properly. I hope many people read this post and take informed choices with money.

    Reply
    • Daddy Poorbucks

      Great lessons right here and way ahead of where I was when I was in school. I was never properly prepared the way I should’ve been and I had to learn things the really hard way.

      Thanks for sharing your valuable experience with us.

      Reply

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