Re-paying a private student loan?

Question

Hi there,
I have a private student loan that is a variable loan and the interest rate today is at 8.3%, the principal balance is $40,000. I have been paying on the loan since June 2003. The monthly payment started out at $300 a month and now it is at $400 a month. I'm worried it is going to keep going up as interest rates rise, besides saving to pay it off early, any suggestions as to how to get rid of it or get the interest rate fixed?

Thanks so much!

Answer 1

Not sure about private student loans - is this through a bank?

Federally-guaranteed student loans can be re-financed/consolidated one time during the life of the loan (unless you are adding in other student loans). You should definitely look into 'consolidating' this into a fixed-rate loan, although interest rates just took a big jump effective July 1st.

This sounds so much like us - my husband had $40k in student loans and we made the mistake of consolidating when rates were high. Our payment was almost $400/mo with a 20 year term! After 12 years, we're still paying on them, but we hope to have them paid off in a year or so (making extra, sometimes double, payments).

I know it doesn't look like it now, but there is light at the end of the tunnel. Remember where you'd be without the loans (asking people, "Do you want fries with that?" for $7/hr.!)

Answer 2

Why do not you do a federal pupil mortgage like a Stafford mortgage as a substitute? They do not require a cosigner or a credit score investigate and they're to your identify. Start by means of making use of at www.fafsa.ed.gov Good success.

Answer 3

Get Out Of Debt
By: Talbert Williams

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