After reading the sub forums, I figured this might be the most appropriate sub forum to post this in.
Backstory: Graduated from college, had trouble finding a job, felt like a failure and depression kicked in. Didn't want to deal with my loans as I saw my loans as a scarlet letter, and if I don't answer the collector (now in default) calls that means the problem doesn't exist because I don't know about it, right? :-X Found a job, average pay but I was afraid to how much my loans ballooned to so I refused to address the issue. IRS started to hold my tax refunds and I got laid off shortly. After a year I found a better job that pays way more. Now I want to pay it off, and I was starting to seeing the repercussions as well. One apartment complex wouldn't rent to me, while a nicer complex did, could only score secured credit cards, deposits for utilities, and such.
So last May I called and told them "Hi. My loans are in default and I want to fix that". Got set up on a IBR plan. I try to pay as soon as I can (22 days before it's due) to not worry about it. They should be out of default this or next month. If I follow IBR my loans should be paid off by next year. However, I plan on paying them off in August (2 year mark at my new job) or May. My ego wants to make it a challenge and pay the entire 25K off in 12 months, well now only 5 months remain.
The original amount out of college was 17K, with collection fees and interest it grew to 25K. Now it's at ~17K, after 8 months. Also, for anyone that might think "You can make a bigger ROI by investing in the market", my fed loans are at 5-6.7%.
(https://i.imgur.com/rwpCONA.jpg)
At 5-6.7%, I'd GLADLY focus on paying that sucker down! You'll feel great once it's been slaughtered.
Way to go. I remember when I paid off my student debt. Best feeling in the world! ;D ;D ;D