California - $57,000 Student Loan Debt Paid Off In 17 months

[@GrowingHomeGardening]

Thanks!

[@VanntasticFinances]

Wow! Thanks!

[@breejones8945]

Income 2,500, Expenses 2,300, $15,000 in savings, Student loans are 48k, LOC is $7,000. But I am a teacher so I would get them forgiven in 10 years. I can pay around $200 in interest a month but I just get that money back on taxes - So it would be nice to not see that big student loan balance but if they would be forgiven in 10 years and I just get the interest money back in taxes anyway, then I am not sure that it even makes sense to pay off the student loan debt. Would love your thoughts :)

[@Ladylee933]

The well come a time when the stydent loan is paid off and now i have ton pay boff the loc. What does that look like? Just masking smaller payments so that i can keep my income?

[@evdorn]

Maybe I'm missing something but $57000 / 17 = $3,352.94. That's more than the free cash flow she has each month. I'm not familiar with LOC, just a little confused where the extra money is coming from to pay the loans off so quickly

[@whatzittooyah]

Probably interest

[@CITIGIRL07]

On the LOC, are you provided a card to use or checks to pay the monthly expenses?

[@patrickburke7324]

Forgive me for my ignorance, but does this mean taking out $10,000 loans from a credit union on a monthly basis?

[@VanntasticFinances]

@patrickburke7324 No, but you are reusing the line of credit over and over again

[@mbsana2553]

Hi Van, what about the interest on LOC?

[@_Island_Boy]

For 18% at 10k balance, the max she'll pay is 148 Dollars in interest. (((0.18*10000)/365)*30 days) = $147.94. so it's negligible in the big scheme of things

[@MandeepSingh-gf2ek]

Interest on the loc over 17months will be much less compared to the interest on those loans over many years. She has another video on the channel explaining the same for home mortgage which will make this concept more clear

[@bryanreed316]

What if you're already paying the interest on the student loans? Does that mean youll pay the interest on the LOC and the student loans? How does this help most people in this scenario?

[@caramela4830]

I also was confused until i did the math. It wrecked my brain due to having dyscalculia. I hope the below assists. 1. Take out LOC 2. Pay the student loan with the LOC loan you just took out. 3. Start paying the LOC instead by adding in your automatic deposits from employer. 4. Simultaneously continue to make the NEW low monthly payment on the student loans. It will be lower since you just paid a huge portion of it. 5. Continue to add money to the LOC until you build up the credit line again. Which is the money that was borrowed. 6. Withdraw a large chunk of money from the LOC a second time. 7. We put that huge second chunk of money towards the student loan again. 8. Doing this pays off the student loan with big chunks of money as this is what ultimately brings a balance down. 9. When we do the math. We end up paying a WAY lower interest by using LOC versus paying only the minimum payment monthly. Paying only minimum monthly payment results in us paying more money in the long run.

[@LaitAuChocolat97]

@@caramela4830 Thanks

[@birdenlightening5855]

I think you forgot adding the interest incurred in LOC balance. Am I wrong?

[@SlaveOfTheCreator]

yes

[@jessicasaltzman328]

Hi! I tried to click on the free consultation link but it doesn't work. Do you have another one? Thank you!

[@EL_PLAGA]

?????? Huh

[@carloscervantes618]

How do add all your check to you LOC

[@caramela4830]

Signing up for automatic deposit with the bank and having your employer deposit it in automatically.