Korean Job Discussion Forums

deetah · Joined: 14 Nov 2004

Well folks, I have 10 more months of student loans payments. I will have paid off $33,000 (plus interest) in 3 years and 5 months.

How well do you fare on your mountain of student debt?
HOw long did it take to pay it off?

Ya-ta Boy · Joined: 16 Jan 2003 Location: Established in 1994

8 freakin' years, but that was before the cushy option of Korea.

blaseblasphemener · Posted: Thu Feb 01, 2007 7:25 am Post subject:

Took me 3 years 1 month to pay off $26,000 in Student Loans, plus $11,000 in Visa cards. Also did that while paying back $335/month the entire time on a separate loan from my parents. And drank like a fish my first year, and never ever scrimped on food.

crsandus · Joined: 05 Oct 2004

Slightly off topic but I don't have any plans to pay back student loans above the minimum. I was lucky enough to get my loan consolidated at 3.65% tax deductible rate. I'm better off taking any extra money and putting it in an online savings account and earn 5%.

Wisconsinite · Joined: 05 Jan 2007

Actually that is sort of true. If you have a low enough interest rate you are better off paying the minimum and putting money in a high yield savings or money market. Some financial planners disagree but one that I work with and really knows his stuff tells me that since the interest is deductible on income tax (if you are American) and it doesn't count against you in a debt to income ratio you should pay the minimum and invest the money you would have used to pay off the debt early. Same thing with a mortgage. He also explained that you are better off paying over the long term because $30,000 dollars now will mean far less in 15 years time because of inflation.

However, I do realize this doesn't work for everyone and that some people need to get that monkey off their back to feel more comfortable.

blaseblasphemener · Posted: Thu Feb 01, 2007 1:03 pm Post subject:

My rate in Canada was much higher than I could get on a savings account, and definitely wanted to get the monkey off my back. I actually still have $3000 left that I could pay off, but make a minimum payment every month as I heard it is good for my credit rating to do that instead of making no payments of any kind.

It's a great feeling to be in the black $2000 more every month. Not many people can say that back home.

dog_disco · Joined: 25 Apr 2006

...Lessee: Graduated April '01. Total debt: 30K (or thereabouts). Will pay the thing off by... NEXT WEEK. Five years, ten months, two collection agencies later. Not great, but better than a lot of people. Mind you, if I'd come to Korea earlier I could've halved that time (or better).

mnhnhyouh · Joined: 21 Nov 2006 Location: The Middle Kingdom

In Australia your student loan is called a HECS (Higher Education Contribution Scheme) debt. Putting a hex on somebody used to mean something different, or did it?

It stays at the same level, so is CPI adjusted. If you earn under AUD$38,000 you dont have to pay any off. If you earn over that amount you pay extra tax to pay it off.

So I have a AUD$20,000 incentive to never earn money in Australia again!! Not smart thinking by our government.

The other option I have considered is to teach (I am a math/science teacher) every second calender year in Australia. This means I would be teaching half of each financial (fiscal) year. In the half year I would not make the HECS threshold and would get most of my tax back.

I could then teach somewhere else every other year, enjoying a nice mobile lifestyle!!!

h

jlb · Joined: 18 Sep 2003

I had about $20 000 cad. Should be paid off within a year.

wowser · Joined: 14 Apr 2004 Location: Kyonggi do

I had a huge debt. 40,000+ in Student loans, 4,000 in bank overdraft, 10,000 to parents. The interest on the loan was huge until I got it below 30,000. I spent one year just treading water with it- paying off compounding interest...I am the only one in my 'group' who has paid of their loan. Other friends have no intention of paying it back.

It took me 5 years to be in the black- I paid it off last year.

canuckistan · Posted: Thu Feb 01, 2007 7:30 pm Post subject:

10 years...low payments...it was only a 10K debt...and I had more serious stuff to pay like 2 mortgages. It was actually annoying to have to think about so I'd just put 3 years worth of payments in an account and forget about it.

They just sent me a letter in Dec saying I'm done. Woo Hoo.

blaseblasphemener · Posted: Thu Feb 01, 2007 7:45 pm Post subject:

congrats canuck!

Why did you have two mortgages? Investment? have you made a killing on it over that time?

canuckistan · Posted: Thu Feb 01, 2007 8:30 pm Post subject:

joeyjoejoe · Joined: 24 Sep 2006

i've never been in debt.

mindmetoo · Joined: 02 Feb 2004

I went to university when a) tuition was quite reasonable b) the government gave the children of single mothers large amounts of free money c) I lived at home. So after 6 years of university (I had a damn good time), my student debt was $5000.