topic I would like to put about 3k towards a student loan but do not know which one to put it towards.... in Student Loans

I would like to put about 3k towards a student loan but do not know which one to put it towards....

Anonymous — Mon, 10 Oct 2011 12:15:39 GMT

Hello I have three student loans. One is with Mohela I owe $2,274.54 and the interest rate is 2.360%. I pay $150.00 on that a month. The next one I owe is with direct loans $25,000 and the interest rate is 7.250%. I pay $150.00 on this a month. Finally the last one is with Great Lakes and I owe $12,244 and the interest rate on that is 6.55%. I pay $150 on this a month as well. I just got back in repayment process due to now finding a job and able to pay these.. (yayyyyyy) My credit scores right now are as follows. Equifax 530 Transunioin 579 Experian...??? My goal is to bring my credit scores up by 150 points or more by the end of summer next year. Would paying 3k off towards a loan bring my score up faster or would it be wise to just pay monthly as I have heard that, that tends to bring your score up faster? If its better to pay off monthly should I just pay more than I would usually pay a month say if I normally pay $150.00 on a loan should I double the payment amount? Would that help? Thanks

Re: I would like to put about 3k towards a student loan but do not know which one to put it towards.

Anonymous — Mon, 10 Oct 2011 14:08:24 GMT

Let’s talk about the credit score first, paying 3k towards the student loan is not going to do much for your credit score. If you score is that low there is some other factors affecting your score like late pays etc.

I would recommend paying of the debts smallest balance to the largest balance. What I found by doing this it gave me the feeling that I was making progress, and when you are covered in mountains of debt you need that feeling trust me. So the 3k will pay off the $2,274.54 loan and you will have a $725.46 left over. Put it towards the $12,244, and then I would attach the $12,244 loan which should be $725.46 less and apply the extra $150 to that loan.

Then once that is done attach the $25,000, home this helps.

Also just so I am clear while attaching the smaller loan continue to make the minimum payments on the other loans.

Also you want to call the company that is servicing the loans and make sure that they are putting the extra payment to the principle and not apply it as an advance payment.

Re: I would like to put about 3k towards a student loan but do not know which one to put it towards.

Anonymous — Mon, 10 Oct 2011 14:20:59 GMT

Shazer 7 Thanks for the advice.. I am going to do that.