With that kind of balance, I'm not going to be able to pay it off in a short period of time, especially since I've decided against using my recent windfall to pay down my debts immediately. Bummer. But I thought it might make me feel better if I snowballed within my snowball.
Specifically, my private SL is broken up into 5 separate loans. Three of the loans were taken out during each of my law school year and the fourth was a "bar loan" that paid for my living expenses while I studied for the bar exam. The fifth loan is a head scratcher. It looks like a supplement loan for the 1997 school year.
Anyhow, here was the balance of my private SL as of 12/31/09:
|Private Loan Breakdown||Original Balance||Balance As of 12/31/09|
|1997 Loan Supplement||$3,500||$1,227.87|
My planned snowball payment towards my private student loan is $1,478/month. Rather than just letting the loan company apply the payment proportionally to each loan, I decided to aggressively pay down the smallest balance first.
My first snowball payment to my Private SL just posted and here's the current balance:
|Private Loan Breakdown||Original Balance||Balance As of 1/20/10|
|1997 Loan Supplement||$3,500||$171.09|
Looks like I'm on my way to paying off the 1997 Loan Supplement next month and the Bar Loan by April. :-D
Why does this matter? Back in December, I pulled my FICO score and it dinged me for having too many accounts with balances. Now that I'll knock down 2 account balances within 4 months, hopefully my FICO score will improve. (Yeah, yeah. I realize my FICO score is irrelevant unless I intend to take out a loan. But I eventually want to purchase my first home so I monitor it couple of times a year.)