Question:
Dear Steve,
I’ve been paying on student loan debt for over 12 years now & haven’t seen the total amount decrease. If anything, it’s increased. My private loans are constantly being sold to other companies.
I’m at a loss. I want to give up on making payments. I would love to put this money into an IRA or more into my retirement.
Please help guide me!
Jessika
Answer:
Dear Jessika,
I feel your frustration. Your emotions are not unwarranted.
Student loans are both a blessing to some and a trap to many.
Your experience is not uncommon among the many people who contact me.
From what you shared, all I can assume is that your student loans are private, not federal.
As simple as your question appears, the answer is very complex.
A rule follower would say pay the loans as you agreed.
A financial artist would say you have creative options to eliminate private student loans through settlement. This approach has pain and risks but can return you to protecting yourself for the future faster.
A financial humanitarian would say you have a duty to your future self and need to be responsible for that person. The past is passed. The future is coming.
Ultimately the correct answer here will have to be crafted after a discussion about your goals, desires, and willingness to select one path. There is no one-size-fits-all answer to your observations.
I would suggest you schedule a free call with Damon Day and have a conversation. He is an excellent debt coach that I collaborate with daily.
The best answer for you in your situation can only be obtained through a discussion to learn more about you and your goals.

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Do you have a question you'd like to ask me for free? Go ahead and click here.
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I want to know what is the total amount? How much is she paying each month? Could she buckle down regarding her budget and use that money for an extra payment? This sounds like she should do debt snowball as a way to payoff her student loans. #mytwocents
That is a reasonable option, as are some others. Ultimately the choice will come down to what Jessika decides is best for her. She will either need to continue to sacrifice her financial future to fix the past or take some pain and fix the future.
For example, is it better to sacrifice retirement savings that will multiply with time or invest the time and return into paying off the old debt?
It is a passionate question that raises many emotional reactions but the math is worth considering. To do the math you can use my online calculator and discover how much you can lose. https://getoutofdebt.org/51244/debt-repayment-calculator-retirement
Asked question about my private student loans.
I just answered your excellent question. Thank you.