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Okay, total student loan debt is $125k.
This is in the form of 6 loans, with varying interest rates from 4.2% to 7.6% and the lowest rates are for the loans with the lowest balances (go figure).
I have two old charge offs (settled) for auto loans CapOne Auto that will drop off of my TU report in 5/23; this should give my scores an awesome boost. I have an old 30/60/90 on one CapOne QS card from 8/2020 and a truly mistaken 30 day late on a JPMChase auto loan from May of 2022 where I sold the car and the dealership didn't pay it off in time prior to the late-date.
Currently planning to do goodwill bomb for the JPMChase 30 day late and the 30/60/90. I'm not sure if it will help to also do it for the 2 CO's for Cap One Auto.
All of my CC balances are paid down to <10% and should report as such for this cycle around 10-SEPT.
My scores took a massive hit when I sold my house and my two cars, leaving my only installment accounts being these 6 student loans with 100% balance ratios.
Is there anything else I can do to get my scores up before the pause / forebearance expires in three months?
I did a soft inquiry through LendKey to test consolidation offers and received ZERO offers- not sure if I should have started with a lower dollar figure than $125k so as not to make their algorithm misfire.
Anyway, the ultimate goal will be to refi through NFCU (whom I'm told uses LendKey) as much of the total as possible.
PS- I can knock out 2 of the 6 loans with cash pretty easy leaving 4 total. Would this help? I feel like every time I pay off an installment account I lose 40 points.
Current scores are low to mid 600s. Hopefully the scores will increase as the revolving balances reported go down to <10%.
Silver lining? Cash and cash flow are plentiful. So if you know of a method to help that costs some money, even a moderate to high amount... that's okay. Please tell me.
thanks in advance for your kindness!
@ccquest I appreciate the time it took to respond, thank you.
Judging by the dollar amount of the student loans, you would absolutely be right in thinking that I would be in "residency" but I'm closer to being a resident DJ in Las Vegas than any sort of medical professional. haha
My degree is a graduate degree from an Ivy that was just really expensive. As for income, we making many multiples of the total student loan balance, so we are good there. Also, we have no other debt, cars are paid off, etc.
When you mention the dealership, are you advising to note in the goodwill letter to JPMC exactly what occurred or contact the dealership directly? I ask because the dealer is a small one that is thousands of miles from where I live, I don't think legal action will make much financial sense nor do I think they have any power to get the late off of my reports.
Lastly, and sorry to ask... but how is this not consolidation? I, like you, have multiple loans with one servicer (AidVantage) and I was thinking that all could be rolled into one loan for simplicity? They are all at 100% balances and current repayment term is 10 years.
Interest Rate per loan breaks down like this:
Loan 1: $37.4k @ 7.6%
Loan 2: $22k @ 6.6%
Loan 3: $21k @ 6.08%
Loan 4: $34k @ 7.08
Loan 5: $1.8k @ 4.3%
Loan 6: $9.3k @ 5.3%
The rates aren't terrible. The payment for a 10 year repayment period is around $1,400 per month.
Do you think paying off Loans 5 & 6 will help or hurt me in the points game?
Again, appreciate your kindness and expertise.
Ah. That's a really smart idea actually to get the loans to 89% across the board to see the point increase.
The loans are actually from 2018-2020 so they are actually aged a bit also. Maybe I'll do the 11% across the board and then focus on paying the highest interest rate one down the most. Does it work like house / mortgage amoritization where if you pay a an extra principle payment on top of the principle and interest payment you can save the interest for that payment? That would be rad and totally worth doing.
I've always contended that Medical School should be absolutely free if someone is smart enough to get in and do good work. If the powers that be want to fix healthcare in the US, they can start by not putting brand new doctors in a half-million dollars in debt from the jump.
Thanks again for the smart ideas. I wish I had your scores, you're crushing it.
Makes sense, thanks again amigo!