How long do you think it will take me to pay off my loans?

Question

he is going to make about 60,000+ a year

while I'll make about 40,000+

We will live in an apartment until we get them paid off but I was wondering on average how long does this take?

We are looking at an apartment that will cost us about 600-700 a month plus utilities.

Given that we don't have much bills, because we are fresh out of college we are just wondering on average with people being smart and not just paying the interest on the loans how long does it normally take to pay them off? Thanks!

Answer 1

The amount of time it will take for you to pay off your student loans will vary with how much you're willing and able to pay each month toward your outstanding balances. The Federal Government pays the interest on a subsidized loan while you're in school. You wrote that you were recent graduates, so with your total outstanding balances of $24,000 at interest rates of 6.10%, please see three examples of repayment options:

A) Pay $173.33 a month for 20 years (239 payments) and you will have paid off your student loans... for a cumulative cost of $41,599.62

B) Pay $267.66 a month for 10 years (120 payments) and you will have paid off your student loans... for a cumulative cost of $32,118.55

C) Pay $1,064.78 a month for 2 years (24 payments) and you will have paid off your student loans... for a cumulative cost of $25,553.63

As you see, the more money you pay each month, the sooner you will pay off your student loans. Good luck to you.