After making my student loan payments for August I am definitely feeling more confident about my current status with FedLoan Servicing, even though there are past issues that still need to be resolved. I manually entered all of my loan amounts when making the payments this month and I made sure that my paid ahead status would be removed for this payment as well. I wanted all the extra money to go towards the principal and it seems like that has worked. I continue to put the bulk of my money towards my private loans, so let’s see how that went this month.
|Loan||Loan Amount||Change||Interest Rate|
|Private 1||$ 22,634.05||$ (1,851.32)||7.92%|
|Private 2||$ 19,845.23||$ (74.26)||7.92%|
|Private 3||$ –||$ –||7.92%|
|Private 4||$ 3,476.00||$ (30.12)||7.35%|
|Gov 1||$ 3,739.63||$ (33.41)||3.40%|
|Gov 2||$ 3,285.00||$ (24.66)||6.80%|
|Gov 3||$ 5,161.96||$ (38.85)||4.50%|
|Gov 4||$ 1,982.62||$ (27.65)||6.80%|
|Gov 5||$ 5,238.45||$ (32.39)||5.60%|
|Gov 6||$ 2,097.12||$ (31.92)||6.80%|
|Gov 7||$ 4,289.37||$ (23.10)||6.00%|
|Gov 8||$ 3,297.95||$ (24.58)||6.80%|
|Total||$ 75,047.38||$ (2,192.26)|
As you can see from the above table, I think I was able to make really great progress this month. I was able to decrease every single government loan this month, and see exactly how much each loan went down. I would have liked to put a little bit more towards the higher interest loans on that side compared to lower interest loans but I was playing it safe for this month. I also believe the way my minimum payments are set up it might a little difficult to do that in some cases.
I’m continuing with my plan of putting as much money as possible towards Private Loan 1 as well as slowing chipping away at the other two loans. I put $2,500 in total towards my loans this month, so even though I spent in slight excess of my total budget in July by about $250 I felt confident doing extra this month. I came in very under budget in May and June so I’m making up for that here.
I figure if I continue to make payments around this rate I should be able to pay off Private Loan 1 in about a year. That does sound like a long time – but my debt will actually be under $50,000 by then! I also think that once that happens things will start to happen quickly with my other loans and I will see some real visible progress. Right now I have to just keep slowing chipping away in my head – knowing that the big moral “victories” will come eventually.