Student Loans and Long Distance Hiking

[TippyTumbles]

So I'm looking to thru-hike in most likely 2014. I graduate in May 2013, and hope to work and plod away at paying off all those loans while also saving for the trail for not quite a year before hitting the trail... but then what to do about paying off loans while on the trail? I don't have a car payment and hopefully not any other bills to worry about while hiking, so it's really just the loans I'll have to worry about as far as outside expenses go.

So I guess my question is... those of you who have thru-hiked with student loans hanging over your head, do you save before hand so you can continue making the minimum monthly payment while on trail? Are there loopholes for getting loans deferred for 6 months or so? Any other advice would be appreciated!

Thanks!

[bmwsmity]

A friend of mine had hers deferred for "financial hardship" when she did a student teaching gig in Chile for 6 months. Most student loan banks are pretty easy-going about deferments as long as you don't exceed the cumulative number of max months you can defer over the life of the loan.

[moldy]

Go to the US Marine Corps recruiting office, sign up for the six month delayed entry program. Mail a coy of your enlistment papers to the student loan place and apply for a military deferment.

[lkaluzi]

I'm pretty sure you can autopay while you're on the trail. You set up a monthly amount for your loans and it automatically takes money from your account and pays them for you. Also talking to the loan people often works, they're usually willing to give you slack in most cases. They're surprisingly understanding in my experience.

[ChinMusic]

Go to the US Marine Corps recruiting office, sign up for the six month delayed entry program. Mail a coy of your enlistment papers to the student loan place and apply for a military deferment.

Excellent.

Hardship for a walking vacation? Pallleeeeeze.

[silverscuba22]

tippy, it is easy to set up an auto pay while on the trail. Most students loans have a 3 to 6 month period after you graduate (at least mine did) before you are required to pay.

[Ender]

You can defer your loans for 6 months, usually with no issue. This can typically only be done once without question, in addition to the standard 6 month deferment right after college, and the loan companies really don't mind at all because it makes them more $$$ in the end. At least, that's how it was 5-10 years ago. Loan companies know how much money college students make right out of college, so this is typically nothing new to them.

That said, if things have changed and the loan company doesn't want to give you a second deferment, ask them to defer your 6 month deferment till the following year. It's worth asking.

My guess though is that it won't be a problem. It's pretty standard that they give a second deferment, since it makes them more money. Getting a third deferment though is a lot less easy.

[Odd Man Out]

tippy, it is easy to set up an auto pay while on the trail. Most students loans have a 3 to 6 month period after you graduate (at least mine did) before you are required to pay.

Correct on both counts. I should know as I have just had my kids graduate from college and I am paying their loans (autopay, 6 months til first payment due).

[skinewmexico]

It's criminal that you can't work your way thru college without loans any more.

[ChinMusic]

It's criminal that you can't work your way thru college without loans any more.

Both my kids are guilty, except for the "work" part.......

[blackbird04217]

DO NOT DEFER YOUR LOANS if you can at all help it.
DO NOT DEFER YOUR LOANS if you can at all help it.
DO NOT DEFER YOUR LOANS if you can at all help it.
DO NOT DEFER YOUR LOANS if you can at all help it.
DO NOT DEFER YOUR LOANS if you can at all help it.

Honestly, save up enough and auto pay at the VERY least the minimal amount, better for a bit extra. Deferring your loans is useful for the bank to make back a whole lot more money than initially. For me it would have cost nearly $5000 extra [long term] to defer my loans. That said, it would probably be worth doing so if it were the only way to fund your adventure. I just feel too many people are being "defer them" without pointing out the fact that deferring it costs a lot longer in the long term due to the interest that continues to accrue.

[CornerCreek27]

i agree with blackbird, any deferment on my loans would have resulted in higher amounts of interest in the end. I payed my loans out hard for the first year out of school and now have been saving to make the $50 minimum payment while i'll be on the trail

[blackbird04217]

I sure do envy YOUR minimum payment!

[Sevsa]

As already mentioned you can definitely set up an automatic payment via your loanholder's website. Although almost ready to retire I still have grad school loans that I'm paying. This is partially because I got a forebearance on them a few times. Mine are directly through the government and I was able to pay a lesser sum for up to a year at a time. If you can pay the minimum amount I also suggest doing that since no extra interest will accrue. I'll be doing that the same year as you, 2014 when I'll be back on the AT attempting a thruhike.

[blackbird04217]

On the topic of setting up automatic payments; in my experiences, this _can_ lower your interest rate, in my case it lowered it by 0.25% and saves me thousands in the long run. Just make sure the money is in the bank when it grabs it, no problems.

[MuddyWaters]

Pay off your student loans with credit cards.

Declare bankruptcy and go hike debt free.

[bmwsmity]

Well of course, long term deferment is a bad idea, because the interest you would be paying for each month gets tacked onto the end of the loan.

Of course, you're still able to pay on the loan during deferment, so you could set up auto bill pay with your bank and pay the interest alone for each month you'll be away (the bank just sends the money to the loan company)... This would be the most prudent option IMO, but I doubt six months of interest is going to be financially devastating

[MuddyWaters]

It's criminal that you can't work your way thru college without loans any more.

Actually, it is.

College costs skyrocketed 10x over the past 20 yrs because banks began lending to anybody with a pulse. They did it because they got legislation passed that student loans DO NOT get discharged in bankruptcy. So it is RISK FREE lending for them, which made money too easily available. Colleges jacked their tuition and fees, paid teachers extravagant salaries, built unneeded facilities.

And the students who were foolish enough to borrow more than they can pay back, will never be able to pay it back, or afford to be able to save any money. Education majors graduating with $150,000 debt is absurd. I have a friend , PhD chemist, both he and his wife, together their student loans are $250,000. They barely get by.

It was predatory lending, pure and simple, that created the problem. Just like the housing problems, etc.

[ChinMusic]

Actually, it is.

College costs skyrocketed 10x over the past 20 yrs because banks began lending to anybody with a pulse. They did it because they got legislation passed that student loans DO NOT get discharged in bankruptcy. So it is RISK FREE lending for them, which made money too easily available. Colleges jacked their tuition and fees, paid teachers extravagant salaries, built unneeded facilities.

And the students who were foolish enough to borrow more than they can pay back, will never be able to pay it back, or afford to be able to save any money. Education majors graduating with $150,000 debt is absurd. I have a friend , PhD chemist, both he and his wife, together their student loans are $250,000. They barely get by.

This.

Been saying this for years and years. The more you subsidize the more you inflate. It is EXACTLY like the housing bubble. This one is gonna be ugly too.

[BoiledPeanut]

Pay off your student loans with credit cards.

Declare bankruptcy and go hike debt free.

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