I’ve got some great news!

In this post, I ranted about my student loan payments. When I logged on to the Sallie Mae website today, my payment has been lowered to $77! I applied for and was approved for the Income Sensitive Repayment Plan, so I’m not paying half my rent to the student loan.

I guess I should be happy, though, my BFF from NC has a payment of $677 per month for her student loan! Can you imagine?

Tomorrow

is the first day my payroll is directly deposited into my ING Checking account. I’m not quite sure how it’s gonna work out for me, but it’s linked to my B&M bank so if I need a check right away, I can transfer the money.

Got my student loan interest statement in the mail. It’s $534.15. I can’t pay the whole thing, but what happens if I pay part of it this month, and part the next month, and so on? I mean, I only get billed quarterly for it. It’s not in my budget because I’m in deferral, but I could put it in, I think.

Subsidized vs. Unsubsidized Student Loans

For a long time now, I’ve wondered what the difference is between the two was and I finally took the time to research it.

Subsidized Student loans are based on financial need and the government pays the interest while you are in school.

Unsubsidized Student loans are NOT based on financial need. Interest accrues from the time the loan is taken out, and you are charged interest on the interest! The best way to minimize the interest charged is to pay it when as it accrues.

I do have both types of loans, mostly unsubsidized. This sucks in a major way, as you can see from the definitions above. If I could figure out how to pay the loans that are unsubsidized first while putting off the subsidized loans, I would. It’s not that simple though. My loans are serviced by two companies. They are both involved in the Student Loan Scandal. So when I pay the bill, they pay the loan they see fit to pay first. I have no choice in the matter.

Anyways, at least now I know the difference, and will work the second job to help pay off the loans. *sigh* Sometimes I feel like I’m in a sinking black hole of debt and I’m never going to get out.

Someday I will post about why I care about PF as promised.