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 Posted: Fri Mar 28, 2008 7:39 am Subject: SALLIE MAE AND STUDENT LOANS |
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While I was in college from Fall 2000 to Fall 2005, I had taken out around $25,000 of student loans thru Sallie Mae. When I graduated I consolidated my loans at an interest rate of about 4.5%. I just checked my records and it shows I will be paying student loans until the year 2027. For almost 2 years I have been paying $105 per month but in July 2008 my payments will increase to $175 per month. To knock down this student loan debt, would it be wise for me to double and/or triple up on payments? Or should I just pay the minimum until its done? I checked my credit report and this is the only debt that I currently have (aside from waiting on my debt validation from Asset Acceptance of a total they say I owe of around $7000). Any help with this idea. Also, I did the calcualtions and it looks like with the $25,000 plus interest I have around $38,000 more to go. I was thinking I can make more payments to the principal balance than the interest.
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jamesellis1982
Joined: 16 Jan 2008
Posts: 63
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| Posted: Fri Mar 28, 2008 11:22 pm Subject: |
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IMO you need to negotiate it out with the lender also need to refer the loan agreement to find out the T&C associated with the lending.
Most of the time the lenders don't not agree to this kind of option simply because it'll make them lose a great deal of money in terms of interest earning.
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tweetyturner
Joined: 11 Mar 2008
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| Posted: Sat Mar 29, 2008 8:41 am Subject: |
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There is NO negotiating on interest rates on federally insured loans. They are set annually by law. The interest rate the OP lock into is very good.
Sounds like the OP took a graduated payment plan. However approx $95 of your $105 payment is going to interest each month. In order to knock it out faster you have to pay it down quicker. I just ran the numbers thru the SL calculator and you could pay it off in 10 years at about $260 per month.
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SOAPLADY
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| Posted: Sun Mar 30, 2008 9:39 am Subject: |
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I am not trying to negotiate the loans. I just want to make more payments a month so I wont be paying this account for 18 years. My goal for my student loans is to pay them out by 10 years maximum.
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jamesellis1982
Joined: 16 Jan 2008
Posts: 63
Debtcc Points: 264
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