Hot Rod Forum banner

1 - 20 of 22 Posts

·
Registered
Joined
·
297 Posts
Discussion Starter #1
Hey everyone. My question is about a student loan I have out, and I am not sure what to do about it. I had taken the loan out for 13,000, and the interest rate was 8.0% ( I know, should not have done that, but I had to get the money). My parents had not filed their taxes for some reason, and therefore I could not receive federal funding (even though I do not live with them). I am wondering if there is anyway I can get the interest rate lowered, possibly by taking out another loan to pay that one off, and getting a loaner interest rate with the new loan. In 6 months, they have already capitalized around 700 in interest. I figure by the time I graduate in 2 years, the balance on that loan will be huge, probably double what the original amount was. Any advice would be appreciated. Thanks

Ben
 

·
Registered
Joined
·
109 Posts
Do a search with under "student loan consolidation". There are several Federal programs available. The best part is that a lot are zero interest until you graduate, and then the payments are deferred for 6 months. Give it a look. also, check with the finalcila aid office of the school you are attending. They will have a lot of answers.
 

·
Registered
Joined
·
297 Posts
Discussion Starter #4
well i guess I learned my lesson. *shrugs* I cant believe there is nothing to be done. And yes, this is a private loan.
 

·
Lost in the 60's
Joined
·
15,259 Posts
You can consolidate any kind of loan if you can find a Banker or a lending institution that will go along with it. Basically what you want to do is make a new loan at a lower rate of interest to pay off your existing loans. This may be hard to do because I don't know if you could get a loan cheaper than the 8 percent you are paying now. It still won't hurt to got to see a banker and find out. If you cannot get a loan at a cheaper rate...you could still save a lot of money just by doubleing up on your payments. You might have to work another job to do this...but you will save thousands of dollars.
 

·
Lost in the 60's
Joined
·
15,259 Posts
Thats true but he might have a car or something that is paid for that he could secure the loan with. Maybe he could get a cosigner that could put up something.
 

·
You got a leaky spark tube...
Joined
·
2,854 Posts
zipfactor, interest sucks. If you're worried about interest then the best thing you can do is strive to pay it off as quick as you can.

Just wait until you buy a house. On a 30 year loan you can very easily pay as much in interest as the original purchase price of the house. 15 year loans aren't nearly as bad but there are 40 year loans showing up, not to mention all of the introductory rate/interest only/skip a payment/rip off loans that are out there.
 

·
Premium Member
Joined
·
3,519 Posts
If you have really good credit you might be able to get a credit card company to give you 0% interest for a couple of years, or like 5% for the life of the ballance. Again, however, that's quite a lot of credit for a credit card so it would be tought to get without really stellar credit. You might be able to get 5 grand pretty easily, and you'd be paying less total interest, but then you'd be making two payments a month in perhaps a greater total amount than before, so you'd have to consider that too.

K
 

·
Registered
Joined
·
5,391 Posts
As a couple of folks have suggested, add an amount to your existing payment, make multiple payments, call them and discuss - anything to get that interest monkey off your back. I bought my home with a 30 year mortgage about 13 years ago, was paying ~8% and, luckily, able to afford it, was making multiple payments then remortgaged about 5 years ago at 4.75%, again making multiple payments. Last year I paid off the small remaining balance. We are, with the exception of about 6 months left on my wife's car payment, totally debt free. Talk about a good feeling :D.

Pay off your debts first, then you can have toys.
 

·
Lost in the 60's
Joined
·
15,259 Posts
I have been totally debt free for 9 years now. It is a great feeling. :)
 

·
Registered
Joined
·
5,391 Posts
Henry Highrise said:
I have been totally debt free for 9 years now. It is a great feeling. :)
My kids absolutely terrify me with their debt - and they are sinking deeper into the morass of bills and lousy credit ratings just to keep up with the proverbial Jones - and every one of them have a college education and excellant jobs.
If I hadn't just gotten a new credit card (US Air) to protect my frequent flyer mileage, I'd have had an even higher credit rating :D .
Dave
 

·
Premium Member
Joined
·
3,519 Posts
Average debt from several sources after college keeps going up. I think the average is something around 20,000 dollars. The average college graduate is also in about 4000 dollars of unsecured credit card debt. The average salary for an econ or business major is 30-42 grand. Psych is 26000 and english majors start at about 28,000 (average numbers, if you made that much in new jersey you'd be living in a box lol). Heck of a way to punish our new grads!

K
 

·
Lost in the 60's
Joined
·
15,259 Posts
Its not so much , how much you make as it is....how you manage what you make.
 

·
Registered
Joined
·
3,925 Posts
killerformula said:
You can't consolidate private loans, only federal. Trust me, I have the same problem.
Killer,

Can he go to a normal student loan outfit to get a "new" loan and then use the proceeds to pay off the private loan...or can those lenders only pay out directly to the school he is attending?
 

·
Premium Member
Joined
·
3,519 Posts
cboy said:
Killer,

Can he go to a normal student loan outfit to get a "new" loan and then use the proceeds to pay off the private loan...or can those lenders only pay out directly to the school he is attending?

once you have the loan its in your name, the money either gets paid to you or the loan distributor. Most "consolidation" folks who offer low rates will turn you away when you tell them its a private loan-

K
 

·
Registered
Joined
·
547 Posts
Henry Highrise said:
I have been totally debt free for 9 years now. It is a great feeling. :)
I paid off all my debt when I retired in 2000,,including my house,, I have NO credit cards, and will never have any more credit cards,,if I can't pay cash,, then I don't need it,,,,,,, No doubt Henry,,,it sure is a good feeling to have a little financial security,
 

·
Lost in the 60's
Joined
·
15,259 Posts
zipfactor said:
well, thanks for the input guys. You know what they say, it takes money to make money
Thats why you need to pay that loan off as soon as you can....You can pay extra money on it every month and specify that the extr payment be taken directly off of the principle....that way all of your extra mony will count towards your debt and not the interest. This will save you a lot of money if you can do this. Once you get the loan paid off you need to start saving for yourself.
 

·
Premium Member
Joined
·
3,519 Posts
zipfactor said:
well, thanks for the input guys. You know what they say, it takes money to make money
Aint that the truth!

The problem is that you make most mistakes in life when you're inexperienced. My first rebuild leaked oil like a siv. Not because I wasn't trying to do a good job, just because I didn't know the right questions to ask. Same is true with finances. When I was right out of highschool I ran up a ton of debt building cars and whatnot, and didn't get that paid off for years. I still have things I'm paying off from college, and while I was doing mental-health community work in Detroit, I couldn't even touch the debt. Like you said it takes money to save money! When you're young you have the lowest income potential, a lot of financial demands (college and whatnot, 4 years of high cost living with little to no income) and like I said, a really high potential of making financial mistakes. A few errors, a little foolishness or misjudgement can cost you for years to come.

I'm almost four years out of my degree now and finally getting paid what I'm worth in jersey. Chalk that up to almost 10 years of financial insecurity! I got lucky, some aren't so much. I hate to say it, but the only way to get ahead and away from your school debt is to have a decent income. Otherwise you'll be chipping away at that loan for years and years! One financial hardship can set you back big-time when you're living close to the nub.

K
 
1 - 20 of 22 Posts
Top