What is the best way to pay off my Sallie Mae loan?[ Edited ]
08-10-2012 08:14 PM - edited 08-10-2012 08:20 PM
I took out a $4000 student loan for the summer. However, I only used $1430.68 and was refunded $2,569.32, which I put into a savings account.
I wanted to know should I continue with the minimum payments of $25--which isn't much, this month for example the interest was $18.94 so I'm guessing only $6.06 off the principal was paid--until I have saved the whole $4000 to pay the loan off all at once--? Also what would be the best procedure to pay it off all at once without Sallie Mae doing something sneaky that would still keep me in their clutches..lol?
Or should I also pay the amount I currently have saved in my account (which is now at $2749.36), along with the $25 I already paid? Would this lower the principal amount I have left (the way how sallie mae works confuses me) and/or lower my interest rate?
All I want to know is what is the best way/procedure to pay off this loan without incurring too much hassle in doing so and getting this off my back as soon as possible?