Student Loan Payment Extended

[Anonymous]

I have student loans that is currently in normal payment length of 10 years. If I extend my terms to 30 years (lower payment), but continue to pay the amount I was paying when I was in 10 year term. Will I still be able to pay my loan off in 10 years, even if its in 30 year term??? I wanted to change it to 30 year term just in cause I can not send my normal payment (10 year), I can send the lower payment (30 year) if that make sense...

I really need some advice, Thanks in advance....

[SCF]

If these are federal loans, there should be no pre-payment penalty, so you would be able to do exactly what you're describing.  If these are private loans, I think you should still be able to do it, but terms on the loan will vary, so you should call your lender to be sure there isn't some kind of penality or restriction.

Your extra payment amount should be applied directly to the principal on your loan, which, with some lenders, will push back your next payment due date.  If you don't want that to happen, you can usually specify it on your payment coupon or by calling your lender and explaining what you want.

Hope that helps!

[Anonymous]

Yes. What was stated above was true.  Im going through that now.. However, mine are GOVERNMENT not private loans... So, if they are government loans, make it 30 years, pay the amount and if you get extra money, send it to your lender stating (because it never hurts to be clear what you want done with your payment) in the letter along with it that you wanted this additional monthly payment to be applied directly to your principal balances only.  But remember you can only state that if you want it applied to principal alone if you have already made your payment for that month.

Hope that helps...  

[Anonymous]

It's federal Loans - Sub, and Unsub loans. Thanks for the Great Information...