Sunday, March 09, 2008

The Student Loan Game

And oh what a game of tears and more tears and the occasional "I WIN!!" it is!

I wasn't going to post about this tonight but since the server is having issues with uploading my pictures I guess I'll take the opportunity to share.

You may remember in my post about what I learned, that I mentioned calling about my student loan, I would like to let you in on a little secret that I happened to stumble upon in my dealings with paying off my student loan. Some of you may find this information useful, others may find it merely interesting and others may just find it.

Here's what I know and have experienced. First off, the cost of a university education is utterly ridiculous! Secondly, the amount of money a student needs to borrow for this education is equally ludicrous! Thirdly, I have the education and the debt to prove it!

I have my B.A and my B.Ed. For those of you counting that's six years of education and filling out loan applications. None of which were all that small. In fact by the end of the six years my debt toll was hovering some where around the 40,000 dollar mark!! That's a lot of moolah to make up! Here's the thing, once you've completed your education and are off in the work force you do have an option open to you as far as payments are concerned. It's called Interest Relief and it's wonderful!! You have a maximum of 30 months of NO payments and your interest won't increase over that time. All you have to do is fill out a form and send proof of your income for the past 3 months. This helped me a LOT!

But what was even better was finding out about Debt Reduction. This my friends is a bit of a secret as they won't just tell you about it, you have to ask for it. It is totally worth it! The hitch here is that you have to be out of school for at least 5 years. If that is your current status, then by all means APPLY! Again, you fill out their form and provide proof of your income (in this case I think you need to provide 12 months). Assuming all goes well, they will then deduct up to 50% or 10,000 dollars off your loan!! That's it, it's gone and your payments will reflect this. Then, (and this is the exciting part) if you are able to make those payments for a year, you are able to apply again and get the same thing! And that's not all if again, you are able to make those new payments you get one last kick at the kitty to get more money docked off! It sounds almost too good to be true but it does work. We have applied twice (so we have one last chance) and have had 20 grand taken off my loan!!

So yeah, this is where you insert the "I WIN"

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