How Bad Are Student Loans Reddit
Recent graduates have been hit with a double whammy of rising tuition and interest rates on student loans. Yet, the student loan debt bomb has grown so large that even their parents are now taking out loans to pay off their children’s college loans. Everyone is concerned about the student loan problem in the United States, where there is more than $1.2 trillion in outstanding loans. But this problem has now spread to other countries, including Canada, Britain, Australia and even China. Let’s discuss student loan debt in the United States and its implications for recent graduates and others.
Student loan debt is more than just a crisis. It is the next bubble to burst and will cause another recession. Reddit knows this, which is why they banned student loan debt as a category on their website in an attempt to cut down on the overall negativity associated with it. We will base our discussion today on How Bad Are Student Loans Reddit. But, other resources which you can find on our website include some frequently asked questions such as: student loan horror stories reddit and student loans ruined my life reddit
How Bad Are Student Loans Reddit
If you’re considering taking out student loans, you might be wondering how bad they really are. Reddit can be a great place to get information on this topic, as there are many people who have experience with student loans and can offer advice. In this article, we’ll take a look at some of the top posts on Reddit about student loans, so that you can get an idea of what to expect.
What are student loans?
Student loans are a type of financial aid that is specifically designed to help students pay for their post-secondary education. Loans are typically issued by the government, but there are also some private student loan options available. Loans have to be repaid, and they usually come with interest. That means that if you take out a $10,000 loan, you’ll likely have to repay more than that over time.
There’s no doubt that student loans can be a helpful way to finance your education. But they can also be a burden, especially if you’re not able to keep up with your payments. If you’re struggling with your student loans, you’re not alone. In fact, there’s a whole community of people on Reddit who are in the same boat.
The /r/studentloans subreddit is a great place to start if you’re looking for advice and support. There are nearly 100,000 members in the community, and they’re all willing to help out fellow borrowers. You can get advice on everything from consolidation to repayment plans, and you can even find scholarships and other forms of financial aid.
If you’re struggling with your student loans, Reddit can be a great resource. But don’t forget that
How do student loans work?
When it comes to student loans, there are a lot of questions and concerns. How do they work? Are they really necessary? And, perhaps most importantly, how bad are they?
Reddit is a great resource for finding honest and helpful opinions on just about any topic, so we turned to the experts on this one. Here’s what Reddit had to say about student loans.
Overall, it seems like student loans aren’t as bad as they’re made out to be. Yes, they can be a burden, but many people feel that the benefits outweigh the negatives. Of course, everyone’s situation is different, so you should make sure to do your own research before taking out any loans.
Pros and cons of taking out student loans
There are a lot of different opinions out there about student loans. Some people think they’re a necessary evil, while others believe they’re a complete waste of money. So, what’s the verdict? Are student loans actually bad?
The answer is: it depends. There are both pros and cons to taking out student loans. On the one hand, loans can help you pay for college when you otherwise wouldn’t be able to afford it. But on the other hand, loans can put you in a difficult financial situation if you’re not careful.
Here are some things to consider if you’re thinking about taking out student loans:
The Pros:
-You can get a degree that will help you get a better job and earn more money over your lifetime.
-Loans can give you the ability to attend the college of your choice, even if it’s more expensive than public schools.
-You don’t have to pay back your loans until after you graduate, so you don’t have to worry about them while you’re in school.
The Cons:
-Student loans can be very expensive, and it can be difficult to pay them back after graduation.
-If
How to get rid of student loans
Are you struggling to pay off your student loans? If you’re like many Americans, you may be looking for ways to get rid of your student debt as quickly as possible.
There are a number of strategies you can use to get rid of your student loans, and we’ve outlined some of the most popular methods below.
1. Refinance your student loans.
One way to save money on your student loans is to refinance them at a lower interest rate. This can help you save money over the life of your loan and may make your monthly payments more manageable.
2. Make extra payments.
If you can afford it, making extra payments on your student loans can help you pay them off more quickly. You can make extra payments directly to your loan servicer or use a service like Student Loan Hero to make automatic payments for you.
3. Consolidate your loans.
If you have multiple student loans, consolidating them into one loan can help you save money on interest and simplify your monthly payments. You can consolidation federal and private student loans through a variety of lenders, including Student Loan Hero.
4. Join an income-driven repayment plan.
If you
Student loan consolidation
If you’re struggling to make payments on your student loans, consolidating your loans could help. Loan consolidation can lower your monthly payment by giving you a longer time to repay your loans. It can also lower your interest rate, which could save you money over the life of your loan.
You can consolidate your federal student loans through the Department of Education’s Direct Consolidation Loan program. To consolidate your private student loans, you’ll need to work with a private lender.
If you’re struggling to make payments on your student loans, consolidating your loans could help. Loan consolidation can lower your monthly payment by giving you a longer time to repay your loans. It can also lower your interest rate, which could save you money over the life of your loan.
You can consolidate your federal student loans through the Department of Education’s Direct Consolidation Loan program. To consolidate your private student loans, you’ll need to work with a private lender.
If you’re struggling to make payments on your student loans, consolidating your loans could help. Loan consolidation can lower your monthly payment by giving you a longer time to repay your loans. It can also lower y
Student loan refinancing
If you’re struggling to make your student loan payments each month, refinancing your loans could be a good option to consider. By refinancing, you’ll be able to secure a lower interest rate, which could save you money over the life of your loan. You may also have the ability to choose a new repayment plan that better fits your budget.
Before you decide to refinance your student loans, it’s important to do your research and compare rates from multiple lenders. Be sure to read the fine print and understand the terms of your new loan before moving forward. Once you’ve found the right refinancing option for you, you can start working towards getting out of debt and saving money on your monthly payments.
What are the best student loan options?
There are a few different types of student loans available, and the best option for you depends on your individual circumstances. For example, if you have good credit, you may be able to get a lower interest rate by taking out a private loan. If you need more flexible repayment terms, a federal loan might be a better option.
You can also look into student loan consolidation or refinancing to get a lower interest rate. And if you’re struggling to make your payments, there are options for deferment or forbearance that can help you temporarily lower or pause your payments.
If you’re not sure what the best option is for you, it’s always a good idea to speak with a financial advisor or someone who specializes in student loans. They can help you understand all of your options and find the best solution for your situation.
User “bionicbeagle” on Reddit sums it up nicely: ” student loans are bad, but they’re not the end of the world. You can still live a normal life and pay them off eventually.” So while student loans might not be ideal, they’re not going to ruin your life. Just be strategic about how you take them out and make sure you have a plan to pay them back.
Figuring out your student loans can be a tough and confusing process. Millions of students and families apply for loans each year, often not knowing what their best options are or how exactly to go about applying for them.
We’ve compiled a list of five reddit student loans tips that we hope can help you throughout this process. Read on to learn more about the steps that different reddit users have taken to make the best financial decisions for themselves.
1. Look at all your options
There are alternatives to taking out student loans, and it’s good to look at these options first before applying for one. In this student loans reddit post, user Betsy514 outlines some of these alternatives, including choosing a cheaper school, taking a gap year, and applying to scholarships.
We here at Juno created our own scholarship database with over thousands of options that you can apply to to help finance your education.
However, if you do need to take out a student loan, which, according to the Chronicle of Higher Education, around 60% of college students do, you should start by looking at all your federal and private options.
Juno has multiple student loan guides that help explain your options, and breaks down the interest rates and costs of these options:
Researching your options is an important step in ensuring that you are making wise financial decisions. These options vary for different schools and programs. For instance, we here at Juno, along with this student loans reddit comment thread, recommend that undergraduate students should always look at their federal options before their private ones. If an undergraduate student meets the federal lending limit for direct loans, they then can turn to private lenders or parent PLUS loans and explore their options there. Look to our guides linked above to determine which options are best for your program.
2. Create a budget to cut down on spending
If you have taken out student loans and are working to repay them, creating a budget can be helpful. Budgeting allows you to be more organized with your repayment plan and helps in setting you up for financial success.
This comment on a student loans reddit advice post breaks down where to start: “First you need to sit down and totally understand your income and your debt and create a budget based on your goals. This is going to take a lot of time. Here’s what you need to know:
- What is your household income?
- List all debts smallest to largest and their interest rates. Student loans and everything else except mortgage.
- List monthly expenses.
- Do you have an emergency fund/how much savings?”
A key part of budgeting is to try and cut down your spending on luxury items.
In this student loans reddit post, user TheChilledPixel details how they paid off $115,000 in student loans.
“(I) used to pay large chunks (think $2.5k – 3k) of my paycheck right after it hits my bank account. Didn’t go out to eat (or get takeout in COVID times) often when my friends pressured me – opted to make home cooked meal and have a cookout at home instead. Got super aggressive with repayment in the past year. I mean like lean lean spending. Only spent money on the rent, phone, utilities, gas and groceries.”
It can be difficult to create a budget and cut down on spending, but if you have outstanding student loan debt it is definitely something to prioritize. User TheChilledPixel is now completely debt free! Budgeting and spending your money wisely is effective, and can help make your student loan expenses much more manageable.
3. Make your payments on time
Interest accrues on your student loan payments, so make your payments sooner rather than later to avoid having to pay extra costs. To make these payments in a timely fashion, try cutting down on your spending — especially when it comes to luxury items.
Reddit user yes_its_him’s reddit post on personal finance emphasizes the importance of staying on top of your payments: “Pay them back on schedule. It sounds crazy, but it just might work! If your income supports it, pay the minimum on low-interest (<~4%) loans. If you have even more income, repay them faster with extra payments, especially on higher interest loans, and save by paying less interest than you would over time.”
Don’t rely on student loan forgiveness and postpone your loan payments. Make sure to pay them back on schedule so you don’t have to pay more than anticipated.
4. Pick up a side hustle or part-time job
If you’re having trouble paying off your student loans with just your primary source of income, consider picking up a side hustle or part-time job.
This student loans reddit thread details various jobs and activities people have picked up to help pay off their loans, including pet sitting, bartending, officiating, and miscellaneous online jobs. These online jobs have flexible hours and you can work in the comfort of your own home!
If you have the time and can make the commitment, a side hustle or part-time job can prove to be very useful, providing you with more flexibility in managing your money.
5. Consider refinancing your private student loans
Refinancing your student loans isn’t always the best option for everyone, but can be very helpful in some cases. Currently, federal student loans are not collecting any interest until October 1, 2021 as part of COVID-19 relief. However, if you are currently repaying a private loan with a high interest rate, refinancing may be your best option, allowing you to lower your monthly payments and save more money.
In this reddit post on student loans, user Zaerth talks about their experience with refinancing their private loan. “I’m going from paying nearly $900/month toward my private loans to $515/month. I extended the life of the loan by a few years in order to get that rate, but I’m planning on refinancing again in a couple years. And I can always pay more than the minimum payment. But for now, it’s a huge relief.” Zaerth said they wished they refinanced years ago.
Juno can help you to find a student loan or refinance a loan at the most competitive possible rate. We get groups of buyers together and negotiate on their behalf with lenders to save them money on private student loans and private student loan refinance loans.
how much student loan debt is too much reddit
1. Skip the variable rate loans
Sallie Mae is far from the only private student lender that offers variable interest rates, but it’s best to avoid them regardless of where you go.
In one post, user Thedisherofpipe saw their interest rate go as high as 10.75% because market rates increased. While fixed rates start out higher than variable rates, they stay the same throughout the life of your loan.
2. Most borrowers have no issues
Sallie Mae services roughly $22.4 billion in student loan debt, which likely translates to hundreds of thousands of customers. However, the Consumer Financial Protection Bureau (CFPB) only received 214 complaints about the lender in 2020.
That’s not to say that there’s no guarantee you’ll never run into issues. But user ANGR1ST was right in this comment: “Serviced my loans fine without any hassle, just like they do for the vast majority of borrowers that then have no reason to comment it.”
Remember, people generally only write reviews when they had a really good or really bad experience, so take everything you read with a grain of salt.
3. Your best bet is to have a cosigner
Like all private student lenders, Sallie Mae reserves its best loan terms for people with excellent credit and a solid income — both of which can be difficult for college students to attain.
In one comment, user vballboss shared that they had a 720 credit score and earned $12 an hour working part-time. While they managed to get approved for a high, variable interest rate, their application was initially rejected. Had they applied with a creditworthy cosigner — which wasn’t possible for them at the time — they likely would’ve gotten a much lower interest rate and more affordable monthly payments.
4. Payment plans for hardship can be inflexible
If you’re struggling to afford your monthly payments on federal student loans, you can get on an income-driven repayment plan that cuts your payment to 10% to 20% of your discretionary income.
With a private lender like Sallie Mae, though, these options aren’t available. The lender does offer modified payment options, including a graduated repayment period for new graduates and forbearance. But don’t expect as much generosity as the federal government offers.
In one comment, user Ms284 shared that on a $32,000 salary, the lowest payment Sallie Mae offered was $749 on their student loans. While they don’t share their balance information, it’s clear that federal loans would have provided more flexibility.
5. Rate reductions are possible, though
In one post, user jayelldub shared a positive experience about getting an interest rate reduction on their loans. You may be eligible for the program if you’re delinquent and your financial situation is eligible. If you qualify, you can get a lower interest rate and monthly payment for a limited time.
With a term and rate modification, you’ll get a lower rate and payment for a limited time plus a longer repayment term.
6. Customer service has improved
In the same post, user jayelldub shares that their experience re-enrolling in Sallie Mae’s rate reduction program in 2020 was much more pleasant than the two previous times they enrolled.
They shared: “My experience was VASTLY different than the 40+ calls I have made in prior years. They are so much nicer and much much more knowledgeable. I barely wanted to physically fight any of them.”
One of the commenters, user Freeman047, agreed with the assessment.
7. Still expect long hold times
While the lender’s customer service may have improved in some areas, that doesn’t mean it’s perfect. Last year, user Semb1ance shared their frustration with trying to contact the lender in a post. Not only could they not log in to their online account, but they also got no response from the chat feature in the Salle Mae mobile app and spent hours on the phone trying to speak with someone, only for the calls to get disconnected.
This may not be every customer’s experience, but if you have a question or issue, plan for long wait times.
8. If you settle, get the terms in writing
In one post, user boncbonc95 shared that they settled a student loan balance with Sallie Mae, only to have the remaining balance sent to a collection agency. They spoke with many customer service agents and got conflicting answers:
“They sold my account to collections in April but any agent I speak with say that they see in the account that it’s paid off. One agent said it’s because I never agreed to the terms of the settlement? But they accepted the money and considered it paid off so Idk.”
If you settle with any lender, make sure to get the full terms and payoff confirmation in writing, so you can fight the collection attempts.
9. Refinance if you can get better terms elsewhere
Whether or not your experience with Sallie Mae is good, it’s ultimately wise to consider refinancing once you’ve graduated and had some time to build your credit history and increase your income.
In one post by user grad2010aa, they announced their intention to refinance, and most commenters agreed it was the right move.
Refinancing could help you lower your interest rate and monthly payment and also give you the flexibility to choose a repayment term that fits your budget. Juno can help you score the lowest rates possible by negotiating with lenders on your behalf.
