I graduated in 98 & I owe more on the loan now than what I owed when I graduated. It's been 9 years & I feel as if I've overpaid. What can I do about this situation?
2007-02-14 03:45:33 · 8 answers · asked by castillo5247 2 in Business & Finance ➔ Credit
You might consider paying it off. The loan is accumulating interest each year. Of course you can fight it in court, but you will most likely loose.
2007-02-14 03:49:18 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Um, you can try, but it would be my assumption that the loan company would put a copy of your terms and conditions in front of your face. It's not at all surprising that you would now owe more than when you started. Remember, loans aren't free. There is interest, even if you are making your monthly payments. Depending on how much you are paying each month, it's entirely possible that you could actually be growing the amount that you owe.
2007-02-14 18:25:14 · answer #2 · answered by Jason 3 · 0⤊ 0⤋
I don't think you will have a leg to stand on in court because student loans are protected by the federal government.
The situation you are describing is the nature of student loans. My husband owes more than he borrowed, too.
The loan companies reel students in with promises of deferred interest, no payments until you graduate, and graduated payments based on your income. What they don't explain is how those deferrments and interest accruals are capitalized into to the loan and then compounded every 1/10 of a second!
Unfortunately, that is how those loans work, and why those companies are willing to make those high risk loans.
A friend of mine was going to file bankruptcy (before the stricter regulations) and she was told that her student loan was exempt from bankruptcy court & she would still owe it.
They have the feds on their side, the best thing you can do is pay more than the minimum payment and knock it down.
2007-02-14 12:06:32 · answer #3 · answered by T H 4 · 0⤊ 0⤋
It depends on the loan contract. Some have binding arbitration as a requirement for agreeing to the loan. For you to owe more than what you started at, one of two things had to occur:
1) You haven't been paying on the loan.
2) It has a really high interest rate.
My guess is both. You got behind on payments which caused the interest rate to skyrocket. Make as big a payment as you can possibly afford, then talk to the loan company about lowering rates.
If you are losing ground on a loan, you're going to have to make some serious living adjustments. What else are you paying on that you don't absolutely have to have (nice car, nice apartment, eating out, Premium cable/satellite.....)?
2007-02-14 12:00:02 · answer #4 · answered by pater47 5 · 0⤊ 0⤋
Nothing. You need to pay off your loan. It is government money. They aren't going to allow you to just not pay it! You need to change your paymeny plan if you haven't paid your loan off by now. You have probably been paying a little less than the interest of your loan. Since you haven't paid it off yet, the interest rate is probably increasing. Call the lender and work out a better payment option.
2007-02-14 11:56:33 · answer #5 · answered by Anonymous · 1⤊ 0⤋
if you have been paying what you are stating is impossible. So you were probably in default at some point and placed in forbearance so to answer your question NO not if it was a federal loan. You will have to pay. But at least the interest on student loans are a tax deduction.
2007-02-14 11:51:44 · answer #6 · answered by golferwhoworks 7 · 1⤊ 0⤋
call up and get a breakdown, or refinance the loan through another company.
Student loans hurt...that's all there is to it
2007-02-14 11:50:08 · answer #7 · answered by Anonymous · 0⤊ 0⤋
no
2007-02-14 11:53:05 · answer #8 · answered by Anonymous · 0⤊ 0⤋