Help! My Student Loan Looks More Like a Mortgage!
Jade asks where very large school loans would go in the Baby Steps.
QUESTION: Jade on Facebook asks where very large school loans would go in the Baby Steps.
ANSWER: Baby Step 2. Just because you have very large student loans does not change the Baby Steps. It does change how fast you’re going to get through them. I sure hope with your very large school loans you ended up with a very large income, but there are some very sad situations out there where people didn’t—where they’ve got $200,000 in student loan debt and they make $100,000. That just is ridiculous. But it’s out there.
I hope you’re one of those who has a big income to go with your big student loan debt, and you just knock them out right there.
You don’t get to treat them like a mortgage. You don’t have a house. There’s not a house there, so you don’t get to treat them that way. You’ve got to get rid of them. If you don’t pound these student loans in the face, if you don’t kick Sallie Mae in the teeth, she’s not going to leave your place. She’s going to hang around forever. You’ve just got to get violent about it, visceral about it, passionate about it. That means Baby Step 2 with your very large school loans, meaning when you’re working your debt snowball paying off everything but your home.