topic Re: Student Loan Advice Needed! in Student Loans

Student Loan Advice Needed!

aurelie00 — Fri, 14 Jun 2013 16:10:11 GMT

Hi There,

I've been in the creidt repair forums for a few months now and feel confident in where my credit is heading. In this process, I've been working at not only rebuilding my credit, but making the most effective use out of the credit I do have.

I feel like my student loans are eating me alive and could use some advice.

I have 5 Wells Fargo Private Loans totalling: $22059. Interest rates are ranging from 4.0% - 7.5%. Monthly Payment is $323.26

I have 6 Sallie Mae Stafford Loans totalling: $18192. Interest rates ranging from 2.39% - 6.8%. Monthly Payment $203.42

My credit scores are in the high 500's - low 600's...so I'm not sure where I could find wiggle room.

My goal is to ultimately lower my interest rates and my overall monthly payments.

Any advice is VERY much appreciated!

Re: Student Loan Advice Needed!

SCF — Fri, 14 Jun 2013 20:53:57 GMT

Honestly, your interest rates are not bad at all for student loans. Rates of 8-10% are not all that unusual on private loans if you borrowed before the Fed lowered their interest rates. Unless you have very good credit, a strong income, and an established relationship with a lender, I wouldn't expect to see much better rates on an unsecured personal loan, or consolidation loan for your private loans.

For your federal loans, you have more options though. Have you consolidated them? In that process, you can select an extended repayment plan that may lower your payment. Your effective interest rate will not change, because they use the weighted average of your current rates, but there are also payment plans like the IBR and PAYE that fix your payment to your income, and can give you some more breathing room as well.

Re: Student Loan Advice Needed!

aurelie00 — Sat, 15 Jun 2013 14:25:54 GMT

Thanks, DVD!

Re: Student Loan Advice Needed!

aurelie00 — Sat, 15 Jun 2013 14:26:35 GMT

Eeeerrr....SCF! :-)

Re: Student Loan Advice Needed!

jadeite788 — Sun, 16 Jun 2013 02:52:18 GMT

From my understanding and speaking with reps from the U.S. Department of Education. Sallie Mae is not under federal loans. I tried that with the IBR programs and Sallie could not go under. If you work in public service, or if you are a teacher now you might be able to consolidate and go under the loan forgiveness program. I also think that Sallie Mae has their own repayment plans that you might want to check with. Private Loans unfortunately you have to pay back.

Re: Student Loan Advice Needed!

laz98 — Sun, 16 Jun 2013 06:05:28 GMT

@jadeite788 wrote:
From my understanding and speaking with reps from the U.S. Department of Education. Sallie Mae is not under federal loans. I tried that with the IBR programs and Sallie could not go under. If you work in public service, or if you are a teacher now you might be able to consolidate and go under the loan forgiveness program. I also think that Sallie Mae has their own repayment plans that you might want to check with. Private Loans unfortunately you have to pay back.

If you mean private loans held by Sallie Mae, that is correct; they are not eligible for IBR.

But Sallie Mae holds about half of my student loans, all of which are federal, & they were just put into IBR last month with no issues.

Re: Student Loan Advice Needed!

jadeite788 — Mon, 17 Jun 2013 14:12:18 GMT

That might be the case, because I signed the paper work from my university which was suppose to be from Regions Bank and I come to find out it Sallie Mae.