🙋🏾♀️Do you know your loan type?
MONEY TIP: Do it without a loan!
But if you can't or didn't (like me) understand the difference between the two different loan types - federal and private.
Both types are the devil but if I had to choose the lesser evil of the two it would be federal. Federal loans offer more temporary relief options during economic hardship and have never blown up my phone on a regular.
I had both federal and private loans to help pay for college. In my first round of aggressive debt payoff I attacked the private loans first, aka Sallie Mae, aka Lucifer's first cousin.
From my experience, Sallie Mae is the most relentless and ruthless when it comes to how and when they get their money back, from:
😩 excessive phone calls
😩 poor customer service
😩 limited repayment options
😩 fluctuating interest rates
😩 air out all your business
😩 quick to snitch to credit bureaus
They called my distant uncle in another state asking HIM where their money was 😂 (my DISTANT uncle y'all). Meanwhile, I had been making some payments (infrequently). But in my defense times were hard, the jobs I applied for were looking for new graduates WITH experience to work for pennies, and those calls from Sallie Mae were never pleasant 😂
In hein sight, those were all just excuses. I was running from my debt and it started to catch up in all areas of my life.
I had no business borrowing all that money with no plan on how or when I'd pay it back. I didn't even like borrowing $5 from a friend but I was cool with borrowing tens of thousands from people I didn't know 🤯
Financial literacy and self-awareness are humbling.
P.S. Due to COVID-19, interest has been waived on all federal loans until September 2020. This is a great win for those with federal loans. - 6 hours ago