Hi! I have 21 loans with Navient from American InterContinental University. Balances ranging from $285 to $25,354. My bottom three, for example, are $285, $419, and $899. Interest ranges between 5-7%, depending on which loan. The total owed $127,371.
If I applied money to them, is it better to make payments to 5 of the loans with equal amounts or to pay off the $285 in full, then pay off the $419 in full, so on and so forth? I would imagine I should want to eliminate the interest for each loan by paying off each loan in full, if possible, right?
There is an article about AIU eliminating my loans but I don't know much about it. I don't use 2 of my degrees at all.
Any help will motivate me to stop ignoring these loans and start doing something about them.
Three ways to look at it...
Pay towards highest interest rates first since this will save you money.
Pay towards lowest balance first as this will motivate you since loans are getting paid off.
Combo of both.
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Are they private or federal? What is their current status (late, in collections/ defaulted, etc)?
They are Navient, so Federal. They are all in good standing. I am in an IBR and am not sure if I should start paying them off while in IBR or let them cancel, as my school was a part of Career Education Corp.
Cancellation for sure!! If never heard of those schools so I looked it up. This article says you should have gotten a letter of you were getting forgiven:
Even if you're not, I will apply for the Borrower Defense forgiveness. The forgiven amount might be taxable, but so far they seem to be ruling school-by-school that it's not. Plus there is also the possibility of insolvency, in which case you wouldn't owe anything. https://thecollegeinvestor.com/22725/student-loan-debt-forgiveness-insolvency/
I would continue paying as little as possible on those loans with an IDR plan such as IBR (or REPAYE) until you can get it sorted out. Not unless you want the hassle of them going into collections if this drags on, even if they'll get discharged in the end. It's up to you.
I'm glad you have a resolution and hopefully a fresh start.
Thank you for the links to the articles. I never knew they existed - I came across a Forbes article about AIU and that's when I realized I wasn't alone. I graduated with 3 degrees from AIU, they lied throughout my time with them and they were really good at convincing prospective students to enroll. I was drawn in 3 times and when I realized the debt I was being crushed under, I just did my best to find work and see if I could begin paying them off. I make $55K a year and cannot afford to take care of my home and child with a $1300 a month payment to Navient. I felt like there was no end in sight...now, finally, I feel hopeful...