gsp123
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| Student Loans |
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Hello everyone,
I hope someone can help me. I currently have 2 private student loans out which have a high APR rate on both of them. I was wondering how I could lower the APR. Should I consolidate them?
I also have federal student loans out but the APR isn't that high. I know there is a couple occupations that have federal loan forgiveness but what about private loan? What is the best action for me to take? If you need more information just let me know, I just didn't want to put all of my personal information out there.
Thanks in advance.
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Fri Feb 25, 2011 11:51 pm |
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KatherineLee88
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| Re: Student Loans |
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Unfortunately, I do not know anything about loan consolidation. That may be something that you'll need to research yourself if you're not comfortable giving more specifics for others to address the consolidation question.
quote:
Originally posted by gsp123
I know there is a couple occupations that have federal loan forgiveness but what about private loan? What is the best action for me to take?
I would say there is not any loan forgiveness programs for private loans. The purpose of the loan forgiveness for federal loans is to provide an incentive for well-qualified students to work in underpaid federally-funded jobs. Therefore, federal government gives money to recruit good people for less-than-ideal "government" jobs. Sort of a win-win situation in a way.
As for private loans, I do not understand how this would be beneficial for a private loan company... but perhaps I don't completely understand... would the federal government additionally pay off private loan lenders, too? I think not, but I don't know for sure. Identify some programs your interested in and investigate that.
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Sat Feb 26, 2011 12:51 am |
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gsp123
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Thank you for that information. If anyone else has any suggestions I would appreciate it. if you need more information I can pm it or post it if it is not too personal
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Sun Feb 27, 2011 4:49 am |
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khosta
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I just started paying my student loans almost a year ago... It all kind of confuses me too. I would just call your loan services and talk to a representative. I've called a few times and had them deferred - which helped. But now it's time to start paying and I might have to call back and see if they can bring the payments dow. Just call and talk to them - they usually are very good about working with you!
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Mon Feb 28, 2011 2:30 pm |
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KatherineLee88
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I second khosta's advice.
The best thing to do is to go to the web site of your loan servicer and see if they have information online. Then contact them over the phone and ask all your questions. They should do their best to explain to you what options may be available to you and how to pursue them if you wish.
They'd be able to discuss your personal financial information pertaining to the loan they service. Although they can't neccesarily give you advice, they can at least present you with facts and options. Then maybe you can come back here and tell us what you're thinking. You wouldn't need to give specifics (although it usually helps), but you can be general and say something like:
I have three student loans I want to consolidate.
1. 24k at 5.5%
2. 13k at 6.8%
3. 23k at 7.8%
They can consolidate all three loans. 60k at 5.8% to be paid over 10 years. Is that a good idea?
I know that consolidation is usually a recommended thing to do, but I reckon that I never will consolidate. It sounds complicated and it actually messes up things if you plan to ever try to defer loans later, ect ect. For my situation it is not a good idea.
However, you need to do the research yourself to determine what consolidation terms you can get, and if it will work for you.
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Mon Feb 28, 2011 4:55 pm |
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RichS
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With all of the problems students are having with their student loans you should try and work with your lenders first to see what options you may have. Once you know more about what they will or won't do then come back to this forum and give more specific information so the forum can give you an accurate response. 
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Author "Your In Simple Language Guide to Basic Investments"
www.insimplelanguage.com
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Mon Feb 28, 2011 7:35 pm |
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MrPolarZero
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You might want to check out the specifics of your loans first. Some student loans are incompatible with others when it comes to debt consolidation.
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Tue Mar 01, 2011 3:27 am |
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oldguy
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quote:
I know there is a couple occupations that have federal loan forgiveness but what about private loan? What is the best action for me to take?
It's hard to tell w/o knowing your status (student/emplyee) and w/o knowing the magnitudes involved. Eg, if you earn $150k/yr and the loans total $75k, the answers woiuld be diffierent than if you are earning $20k/yr and have $200k in loans.
In general, don't prepay loans that are <6% interest - retain the use of that capital for the full term of the loan and invest your earnings elsewhere in wealth-building products.
As for loan forgiveness - if you are in a low-income field, a loan forgiveness plan is of value because even small loans are difficult to pay if you earn only $30,000, most of your income has to go to subsistence. Conversely, if you can earn $100k, it is better to avoid the forgiveness plan (lower paying) and use your high salary to pay the loan.
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Tue Mar 01, 2011 5:37 pm |
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