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Best way to pay off Student loan debt

Established Member

Best way to pay off Student loan debt

I finally paid off all my CC debt and now my plan is to work on Student loan debt. I graduated from gradschool in 2005 with 40,000 in loans, 11 year later I owe 28,898 at 3.500%. I was trying to pay down my loans like my CC debt and make bi weekly payments but i saw the additional payment of $150    88.63 went to principal and 61. 37 went to intrest. When I called ACS they said intrest is compounded daily and the best way to pay off my balance is to make  extra payments on the same day as my scheduled payment. My plan is to just save the 150 biweekly and just add it to my monthly payment of 217 for a total of 517. I know ACS has been in trouble in the past for some of their practices. Does that sound correct ? what is the best plan to pay this debt off before 2029? 

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4 REPLIES
Established Member

Re: Best way to pay off Student loan debt

Anyone?? Can someone help with this? my next payment is due on the 28th and i want to know what is the best way to make the payment. I understand the biweekly method  lets you pay one extra payment a year  but if im adding an additional 300 to my scheduled payment of 217 (517  monthly payment)  isnt this better then the biweekly payment plan ?  or with the daily compounded intrest should i still be paying biweekly? 

Message 2 of 5
Valued Contributor

Re: Best way to pay off Student loan debt

How are your credit scores? Are you planning on any other large purchases in the future? Car? House? 

 

If you don't plan on making those large purchases in the next 15 months, I would try for the Chase Slate Card. You can balance transfer directly from the loan balance, and pay 0% interest on the card for 15 months, plus no balance transfer fee.

 

What this would like:

 

$217 minimum monthly payment to ACS

$300 to paying Chase Slate card balance

 

Over those 15 months you could transfer $4500 if you wanted to stick to the extra $300 a month. If you can afford to do more a month with the Chase Slate option I certainly would, just make sure to pay off before the 15 months!

Message 3 of 5
Established Member

Re: Best way to pay off Student loan debt


tydawg wrote:

How are your credit scores? Are you planning on any other large purchases in the future? Car? House? 

 

If you don't plan on making those large purchases in the next 15 months, I would try for the Chase Slate Card. You can balance transfer directly from the loan balance, and pay 0% interest on the card for 15 months, plus no balance transfer fee.

 

What this would like:

 

$217 minimum monthly payment to ACS

$300 to paying Chase Slate card balance

 

Over those 15 months you could transfer $4500 if you wanted to stick to the extra $300 a month. If you can afford to do more a month with the Chase Slate option I certainly would, just make sure to pay off before the 15 months!


my credit scores are good ( experian fako score 726).  I have a lot of paid charge offs so im unable to get  credit cards. I just got a quick silver and it only has a 3,000 limit and I know im blacklisted from Chase. An option I thought about was tranfering the debt to my parents HELOC. they allowed me to pay off debt before using this and i paid it off in a year with no problems (8,700). My only concerns are putting 28,000 of debt in my parents name while they are both retired and the fact that the intrest rate is variable. My loan is fixed at 3.5 % and the hight intrested i paid on the HELOC in the past was 4+%. I dont think the HELOC intrest is compunded daily so this is an advantage. what are your thoughts? 

Message 4 of 5
Valued Contributor

Re: Best way to pay off Student loan debt

Transferring to the HELOC could be adventageous in that it will help your DTI ratio (debt to income) if you were to look at purchasing a home or car. It would also likely help your credit score go up. At which point credit card lenders could be more willing to overlook the past paid charge offs. It really comes down to if you are comfortable with rolling the dice on a variable rate. IMO I don't think interest rates will be going anywhere in the next 6 months, maybe longer. Also MOST HELOC use simple interest calculations meaning you could potentially avoid the daily compounding interest. I would also consider checking your FICO scores to see where you stand, they also have a score predictor that will show what it predicts your score to be if you were to pay off the loans. If you are eligible consider checking out Navy Federal Credit Union they also are having a promo for 0% on one of their cards, and they can be lenient if you can provide income statements and such.

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