I don't have a well paying job yet, but anticipate having a good job in one year. Should I knock myself out to pay off the loans as soon as possible or make minimum payments every month? I've heard 2 different theories about this, one saying pay loans off as soon as possible, the other saying make minimum payments. Help?
2006-06-28 07:03:33 · 8 answers · asked by Andy 1 in Business & Finance ➔ Personal Finance
The faster you pay off the principal, the less interest you will owe. Student loans can generate interest very fast depending on how much you owe. Paying any more than the minimum monthly payment will go straight to principal rather than to interest. Paying off early can greatly reduce the amount you will ultimately owe. Definitely pay off early.
2006-06-28 07:09:27 · answer #1 · answered by jlamb_2000 2 · 0⤊ 0⤋
Hi,
Making minimum payments every month is the best option if you are yet to get a job that pays well. Once you have a decent paying stable job ...you will still have the option to make faster ( read bigger )payments.
If you are in school...I suggest that you call your servicer and get your loan into repayment stautus and than call up any loan consolidation co. and get your loans consolidated...this will save you a LOT of money. Interest rates on student loans will see a dramatic increase on the 1 July 06. i.e you ve only 2 days time ( incl today ) to get ur loan into repayments status and consolidate...HURRY UP.
Chk if the people at 1800-446-5418 can help you.
Neel
2006-06-29 06:56:03 · answer #2 · answered by neelam k 1 · 0⤊ 0⤋
I would pay it off as soon as you are able. I do not think you should knock yourself out doing it but do get rid of it as quickly as you can. It is easy to run up debt, but difficult to get out of it.
Being in debt can affect your ability to afford a mortgage should you want to enter the property market. If you found yourself unable to manage your debt, you could end up on a debtors list.
I can tell you that I would not be comfortable with large debts and my only real debt is my mortgage. I always pay off my credit cards each month and all my bills are paid either through standing orders or direct debits. I really do not want to pay the exhorbitant interest rates that being in debt incurs.
Do yourself a favour, get yourself out of debt.
2006-06-28 07:14:37 · answer #3 · answered by peewit 3 · 0⤊ 0⤋
Pay up as soon as possible...find job with hospitals that would help you with loan re-payment.
2006-06-28 07:06:47 · answer #4 · answered by dude 4 · 0⤊ 0⤋
It depends on your financial situation.
If you have other debt at a higher interest rate, pay that off first. Or if paying this off early would mean borrowing money at a higher rate now or in the near future, don't pay it off early.
If it is your highest interest debt and you have enough discretionary income to do so, then pay it off early.
2006-06-28 07:08:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋
First...try to consolidate em all...it reduces your payments and extends your term.
Second...call em all and set up a re-payment plan based on your financial ability..
One of those 2 should help you
2006-06-28 07:07:08 · answer #6 · answered by jaydragon0 2 · 0⤊ 0⤋
Just don't miss a payment thats the most important.
2006-06-28 07:08:50 · answer #7 · answered by strawberry 2 · 0⤊ 0⤋
There is some good info here.
2006-06-28 07:07:40 · answer #8 · answered by Anonymous · 0⤊ 0⤋
You never pay this.
2006-06-28 07:06:37 · answer #9 · answered by kedarnath c 2 · 0⤊ 0⤋