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lunarian. grumble. At least you did indeed take the right chance. I hope things work out for you! The Rising Suun, eh, it depends. As someone in the student loan business my immediate answer is YES YOU ARE, but ultimately if you take out debt that you can pay off immediately after it's really not harming you. But we in the biz always ALWAYS recommend taking out only what you actually need, so I would suggest you budget heavily and decide what you actually need to take out. samizdat, if your parent or guardian dies a PLUS loan is written off. I know for a fact that a GradPLUS is written off if the student dies, but I am honestly not sure about if the endorser dies. My gut instinct is yes, but I would read the MPN on a GradPLUS to be sure (they do indeed list that info, it's just buried in there). PM me if you can to remind me to check on this tomorrow, I will ask our compliance department and get you an official answer. MrPT, antwizzle hit this one right on the head. If you have any other questions, don't hesitate to ask! Lee Harvey Oswald, your avatar scares me. Otherwise, yes you can use both, as nesbit37 said. IBR and loan forgiveness are tied together anyway, so as long as you make the qualifying payments you're golden! Thank you to everyone helping out in this thread! You all make my life MUCH easier 
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Dec 1, 2010 02:51
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One thing I did hear is that if part of your loan is forgiven through IBR, the forgiven amount is considered taxable income. Still better than having the loan, but I can see some people being blindsided by suddenly having five figures added to their taxable income and owing a huge amount to the IRS because of it. Am I correct on this?
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Dec 1, 2010 07:26
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Hi, I've basically hosed up the past year and a half of my academic career. Long story short, I had a year long struggle with mental illness and relapsed into that after some traumatic events within my family, so I petitioned for late withdrawal the past two semesters and will probably have to do the same for this semester. In about a month, I'm moving halfway across the country, and with the help of my girlfriend, I have developed a plan for moving forward academically. I'll be attending a community college next semester and transitioning from there into a university through a joint agreement between the two schools. My main issue is figuring out what the hell I'm going to do to pay for the next semester of school. Granted, it's a community college and not particularly expensive, but I essentially have enough money to get me through the move and my first month of living at my new place of residence and buying myself enough time to secure a sufficient job. FAFSA seems confusing as hell to me, but if I understand correctly, withdrawn classes still count toward satisfactory academic progress guidelines for eligibility which means I'm probably not eligible for direct loans and even if I was, I'm pretty much on my own and 21, which means even though I won't be receiving any support for school from my parents, FAFSA will want their tax return info anyways. So right now, I'm trying to figure out what the hell my options are for the next semester. I'm 21 with a rather minimal line of credit, but because I'm more-or-less disconnected from my parents, if I chose to go the way of a private loan, I wouldn't be able to secure a cosigner. My school has a stepped payment plan which essentially means I'll be paying 25% of tuition every month, but the first 25% is due as soon as I register for classes, and I'm not even sure if I qualify for in-state tuition (state guidelines specify that because my relocation is permanent and I'm not moving for the primary purpose of school that I might have a case for receiving in-state tuition rates). I guess I'd like to get an idea of what my best-case-scenario options are at this point, and avoid any further headaches trying to wrap my brain around the process.
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Dec 1, 2010 17:37
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Konstantin, I have heard both versions of that story. I am not sure, and recommend you call your servicer (or any servicer if you don't have one) to ask that question. However, I do know that a company we service forgave a large chunk of people's loans several years ago, and those people had to claim that forgiveness as income on their taxes. Still, when compared to years of interest payments, they were happy. Take from that what you will! kidfresca, I'm glad you appear to be feeling better and wish you continued improvement. You can actually file the FAFSA now without parent information, it will just limit you to unsubsidized loans. Since you'll be going to a community college, this might be more than enough. File your FAFSA first, get your awards package from the school, and then ask them about private loans that you might be able to apply for. Since you have little credit there's a possibility that you might have to have a cosigner for a private loan.
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Dec 3, 2010 03:42
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I went to dl.ed.gov this morning to look at my loan information for the first time in a few months. My status shows me as "In school until 12/15/2019" with my first scheduled payment being due in July of 2020. Is this normal for students who are currently enrolled, or did someone mistype my info? (I graduate in May 2011) I'm sure it'll be corrected eventually but it would be nice to have the luxury of setting my own payments for the next 10 years edit - received a PM from someone who had the same thing happen with a warning about how any payments not made before the error is corrected are added to the next payment in a lump sum. Aww, too bad Carlton Banks fucked around with this message at 19:30 on Dec 5, 2010 |
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Dec 5, 2010 17:52
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It's extremely common, and once you've graduated they will likely correct your information, but it doesn't hurt to call and update it yourself with a representative.
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Dec 6, 2010 00:52
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I'm in a graduate program right now and have been paying my tuition so far with employer education allotments and cash. I'm getting kind of sick of waiting around so was considering taking about $15k out in loans to finish the degree quickly and hopefully begin my new career. Currently I have about $45k to pay off for my undergrad at about a 2.5% rate. It looks like these Stafford rates are locked in at 6.8%. This seems like a large disparity to me. What gives? Are things just different now in the student loan sector? Is there an alternative with better rates? I work full time as well so I figure I can start throwing money at these loans while they're still subsidized, but wanted to check in here before making any uninformed decisions.
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Dec 6, 2010 05:12
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Wiggy Marie posted:samizdat, if your parent or guardian dies a PLUS loan is written off. I know for a fact that a GradPLUS is written off if the student dies, but I am honestly not sure about if the endorser dies. My gut instinct is yes, but I would read the MPN on a GradPLUS to be sure (they do indeed list that info, it's just buried in there). PM me if you can to remind me to check on this tomorrow, I will ask our compliance department and get you an official answer. When you say written off, you mean it basically vanishes and the money does not have to be paid back, nor is her estate affected or the balance gets transferred to the student? I refer to the parent PLUS loan specifically, not the GradPLUS. I came to this thread to ask this exact question because my mom is in poor health and on social security, and we're wondering if it's a good idea for her to continue to take out the PLUS loans for me. Another question about PLUS loans, will the government take money from my mom's social security payments even if the loan is in deferment while I'm in school? She was very worried about that.
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Dec 6, 2010 15:17
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Oliver C, loans before July 1st 2007 had variable rates that fluctuate both lower and higher, so that might be what you're seeing. Private loans are averaging much lower rates for now, but that rate WILL rise when the markets pick back up. The 6.8% is a fixed rate for Stafford loans, however the rate does vary depending on which Stafford loans you have and what status they're in. There is NO better alternative to Staffords; private loans are the devil and will haunt you for years. Reene, if the parent or student associated with a PLUS loan dies, then the servicing agency needs a notarized copy of their death certificate. Once this is received the federal loan is written off entirely; no one would have to pay it. All federal education loans work this way. It's a downer perk but it IS a perk. I hope your mom recovers, though. Wishing her the best!
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Dec 6, 2010 23:51
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I've recently come into a pretty bad situation. I have about 24k in student loans through DLS which I have been dutifully paying thanks to automatic payments. My fiancee's loans.... well, she hadn't really paid attention to them while she was in grad school and when she got a good job and stopped attending school due to her work load at her job, she didn't pay much attention to them. Well problem is that her federal loans are now due (about 30k), and she has about 25k not yet due, but soon, from nelnet. That would be manageable if it wasn't for some credit card debit that we had to incur due to some bad circumstances (7k). Oh and to top it off she never updated her address with a previous school she attended for a year awhile back, and they've been trying to collect on $5,000 for the past year that she didn't know about and doesn't know why it wasn't covered by financial aid. Needless to say, they want their $5000 right now and didn't give a crap that we can't pay it. My questions... we're not yet married, but will be in a few months (May). What's the best way to deal with this without screwing our credit scores? I assume hers is already in the crapper due to that past due that $5000 lump sitting out there... Consolidating the whole mess seems logical, but that doesn't help us deal with that $5000 that the school is asking for. Is there any way to get that folded into our existing student loans? Could we even consolidate together considering we are not yet married? Can that nelnet loan get consolidated by the feds? We've already decided we have to eliminate all of our major cost of living expenses such as rent, utilities and such (that obviously means moving back home, but you gotta do what you gotta do....) in order to get this stuff paid down, but I'm afraid it's not enough and I am looking need a better plan of action. Thoughts?
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Dec 7, 2010 05:43
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You can't consolidate your loans and hers regardless, unless you can take out a personal loan through a bank that covers the full amounts of both. I would highly suggest consolidating your loans and hers separately, though, and then asking about your deferment/forbearance options. Even if you want to continue making payments, if you can get a deferment you'll save the interest on any subsidized loans and can still make payments during that time. If either of you have private loans, you'd need to contact Wells Fargo. I have heard that SOME schools will allow a student to take out a private loan to cover leftover tuition, however if her credit has been affect by now this may no longer be an option. She'll need to talk to the school about her options. If they just keep insisting she needs to pay the whole total, well, pay what you can to get it down. That's really all you can do at this point!
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Dec 7, 2010 14:23
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I have somewhat of a unique situation and I am looking for advice on how to best approach my wife’s student loan with the resources that will be available for the next 3 years. Background my wife currently has $150,000 in student loan debt recently consolidated with Direct Loan Consolidation at an interest rate of 7% over 30 years. Circumstances I really don’t want to get into this debt was to be paid by her father’s trust fund in its entirety. Given the decline in the market and how some of these funds are tied up until a certain family member becomes deceased the ability to pay this amount outright is not an option at this time. What has been proposed by the trust at this point is for calendar year 2011 they will most likely release $25,000 to us to pay student loans in 2011. I will make an assumption and assume for 2012 and 2013 we could expect a similar amount to pay off student loan debt or $75,000 over the next 3 years. Obviously I would like to have the entire balance paid off as that was agreed to prior to my wife’s decision to attend school. However, that may not be an option and what my ultimate goal is to reduce the balance of the loan to as close to $75,000 as possible over the next three years. I feel this amount given my job and wife’s prospects for a job is something we can handle without reliance on anybody else. That being said what is the best way to make payments on the principle $150,000 over the next 3 years assuming we will have $75,000 to rely on to make payments independent of our income? Interest is obviously going to rear its ugly head and I would be curious if anyone has any links to an interest calculator that would help conceptualize what actually needs to be paid to reach the goal of $75,000 by December of 2013. Is it better to make a large payment of $25,000 for each year or better to make double payments over the course of the year in the amount of $2083 per month for the next 3 years? Any advice or links to an interest and payment calculator would be appreciated.
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Dec 8, 2010 18:11
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Frankly I'm not certain you can pay that down to the amount you want using the 25 grand and the time you suggested. I would suggest the following site: http://www.whatsthecost.com/snowball.aspx?country=us I played around with the numbers and it looks like you'll need to pay around 3000.00/mth in order to get to the levels you want, and 3000.00 times 12 months is over the amount you'll be allotted so you'll need to play around with the numbers. As for how to make those payments, I always suggest breaking them up as much as possible. Personally I pay toward my personal loan once every week. It's a little above the total monthly payment for the whole month, but I pay a small piece of the monthly amount every week and end up paying less interest and more principal. You guys can do the same thing with whichever total you can afford to use.
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Dec 8, 2010 23:33
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Okay, not really a complicated question. I can't find out how to access the 2011-2012 FAFSA. I click "start here" put in all the relevant info and all it shows me is my 2010-2011. I'm using Firefox 3.6.13 and when that didn't work I tried to use a User Agent (I think its called) to make it look like I'm using IE8. What the hell? The site says "The new 2011-2012 FAFSA is here! To begin your application, click Start Here above." so I have no idea what the hell I'm doing wrong. edit: I use Ubuntu for an OS, is that the problem because I just read "If you choose to use a browser (with an operating system) other than the ones listed here, the site’s pages may not display properly." ladyweapon fucked around with this message at 04:54 on Jan 1, 2011 |
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Jan 1, 2011 04:52
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Firefox should work, I'm not sure why it wouldn't. I just tried the page, though, and when I log in it gives me the option to start a new FAFSA or pull up my old one. Do you have the two options? If so, and you're clicking to start the 11-12 FAFSA and it's erroring to the 10-11, you'll need to contact them about the glitch.
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Jan 1, 2011 14:46
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I'm already using my 9/11 GI bill though the VA to pay for school tuition, but will FAFSA care if I apply for aid as well?
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Jan 2, 2011 15:05
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When you apply for aid they will take into account your VA benefits, however this doesn't make you ineligible for additional aid - specifically for living expenses if they're not already covered. It won't hurt you to apply.
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Jan 2, 2011 23:17
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Wiggy Marie posted:When you apply for aid they will take into account your VA benefits, however this doesn't make you ineligible for additional aid - specifically for living expenses if they're not already covered. It won't hurt you to apply. That's fine, I was concered being enrolled with the VA would exclude me from FAFSA, but I don't see why it would.
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Jan 3, 2011 01:24
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FAFSA is just an application. Everybody is "eligible" to fill it out. The results tell you what grants or loans that you are eligible for.
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Jan 4, 2011 07:16
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The Wells Fargo loan consolidation seems like a bad deal. I just looked at their website and the terms are a variable rate APR and they have the right to modify the terms of the loan at any time without your approval. Why is it a good idea to consolidate private loans through wells fargo again?
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Jan 4, 2011 17:29
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It can be a good or a bad idea. The only reason I recommend them is because people in this thread have done so before, so I assume they're not the devil (unlike Sallie Mae!). But if someone can afford to pay on their loans without a consolidation and doesn't mind paying a few different companies (if applicable), it's generally in the person's best interest to leave their accounts alone.
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Jan 5, 2011 01:36
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OK, I am getting so frustrated it makes me feel like screaming. I feel caught in a Kafkaesque bureaucratic nightmare. I graduated in 2007 with about 60k in federal student loans. I earn 40k and have gotten married and have a kid. I am pretty fuckin broke. I have been trying to get onto the income based repayment plan for about 4 months now with no luck. Each time I have submitted the documentation, I have gotten a form denial with a box checked next to the reason "incomplete documentation of income" or "missing signatures" or something. Each time, I have called the loan servicing customer service number and explained that I submitted my paperwork for the income based repayment plan and it was rejected and they give me the form nebulous answer about needing signature from wife (its there) or needing pay stubs (they were provided) or needing documentation of her income (provided). I ask for clarification and they tell me to submit what I have already submitted. I let them know its there in the file and they will look at it and then say "oh, ya" and that I need to get them a different version. For instance, for my wife's unemployment income documentation, they ask me for a written statement saying "I, *WIFE'S NAME*, earn X per month from unemployment in the State of Florida. *WIFE'S SIGNATURE*" So I draft up these strange requests and submit them and then get a form letter saying its not accepted when the only reason I DID it was because they asked me to. I'm losing my loving mind like you cant even understand. Its like a twilight zone nightmare. I know I have given everything I need to give and can't get through to them. They will tell me I need a signature on some line, then I ask for clarification because the line indicates the signature is only needed in a circumstance I don't have and, for instance, I was told that the forms are just old and that "I won't tell you they are perfect" but that I just need a signature there. So I do what I'm told. Then I get the form rejection. I am not a genius, but I am pretty good with forms and compliance with these sorts of requirements (I am a lawyer), and I can't find a single place where I haven't provided them with what they want. I feel like I am being intentionally hosed with for some reason. Does anyone have any ideas? Am I not using the right magic words? Maybe I sound like a prick and just piss anyone I'm talking with off so they have noted something in my file about making sure I suffer? I don't think I have done anything like that. I think I cried on the phone while begging for help last time I called, but thats as emotional as it has been. I can't afford poo poo, big 500 dollar payment about to come out this month, should have been on income based months ago. Can't afford mortgage, can't afford other bills, gotta get this done or can't afford to live and I am stuck. Do I ask to speak with a supervisor? I feel like that just adds more negative marks to my file and I try to be as friendly as possible.
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Jan 11, 2011 00:50
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Yes, call and immediately ask to speak with a supervisor. They're tugging your chain unnecessarily and you need to speak with someone who might at least be able to cut through some silliness.
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Jan 11, 2011 01:06
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My girlfriend didn't need a living expense loan last semester for school, but she needs one this semester. Her financial aid department says she wouldn't see any money until July, which is messed up. She needs the money soon (before the end of Feb, preferably) so she can continue to pay her rent. What are her options?
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Jan 11, 2011 16:37
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I would need more details about why there's a wait until July. Are they saying they won't certify anything until then? Did she run out of federal aid for the school year?
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Jan 12, 2011 01:26
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Wiggy Marie posted:I would need more details about why there's a wait until July. Are they saying they won't certify anything until then? Did she run out of federal aid for the school year? She will be getting all the federal aid for the semester that she can get, which gives her about $900 after her school takes their share, and then $300 will go right back to the school for a parking pass for the semester. She didn't get any private loans last semester because she had enough cash + leftover federal aid to cover living expenses for the Fall 2010 semester. Her funds are dry for this next semester, so she needs to get student loans for living expenses for the Spring 2011 semester. She talked to someone else in her school's office today and got some more reasonable answers than "You won't see money until July," but nothing has advanced forward anywhere yet besides talk. Her FAFSA is either complete and turned in, or almost turned in (she had a question about something on it for her school that I think has been answered now). She needs the money before the end of February. She's old enough to be independent and I don't know if her father can get a Parent Plus loan or whatever it is. I don't know exactly how much she will need off the top of my head, maybe something like $1000 a month for the semester, and she will try and work during the summer, so maybe $3000 total? Hopefully that's enough info to get some direction. We're also working on this by talking to her school's financial aid department, and as many people in it as possible, as well as her parents, my parents, lots of Google searches, and kind of any ear we can get.
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Jan 12, 2011 05:17
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Chainclaw posted:She will be getting all the federal aid for the semester that she can get, which gives her about $900 after her school takes their share, and then $300 will go right back to the school for a parking pass for the semester. She didn't get any private loans last semester because she had enough cash + leftover federal aid to cover living expenses for the Fall 2010 semester. Her funds are dry for this next semester, so she needs to get student loans for living expenses for the Spring 2011 semester. She talked to someone else in her school's office today and got some more reasonable answers than "You won't see money until July," but nothing has advanced forward anywhere yet besides talk. Her FAFSA is either complete and turned in, or almost turned in (she had a question about something on it for her school that I think has been answered now). She needs the money before the end of February. She's old enough to be independent and I don't know if her father can get a Parent Plus loan or whatever it is. I don't know exactly how much she will need off the top of my head, maybe something like $1000 a month for the semester, and she will try and work during the summer, so maybe $3000 total? The real question to ask is: did she max out the full cost-of-living allowance (this includes tuition, room & board, books, etc) with federal aid for both semesters? It really doesn't sound like she did. She should be able to get private loan money mid-semester, depending on what she is and isn't maxed out on, although grants/scholarships are very doubtful mid-semester as these are typically assigned before the start of the semester. What's always necessary is for the school's finaid office to certify the loan. However you have to get the ball rolling ASAP as you have to go through the whole loan application/certification/disbursement cycle, and you don't want to be starting on it in the end of February when rent is due in a couple of weeks. I don't know why the finaid department told her she would see any money until July, and it doesn't sound like they gave much explanation. The only reason I can imagine that happening is if she maxed out her cost of living - but from the info you've given it doesn't sound like she did. Finaid departments can be frustrating in this way; keep in mind that the people manning the phones and answering your questions are sometimes a little undertrained and don't understand everything fully, and it's usually a righteous mess anyway. Tell her to get all of her records together and schedule an in-person appointment with her financial aid counselor, at which point she can explain her situation in full and see how to proceed for optimal resolution. Best thing to do is to initiate a loan application through the school's financial aid department (rather than applying through http://www.salliemae.com or something). Edit: as far as PLUS loans, are you sure she's independent by FAFSA status (remember, this is different than income tax status)? On the FAFSA you can be considered a dependent (and hence your parents should be able to get a PLUS loan for you) up to 24 years of age, I believe. A PLUS loan would be much better than a private loan in any circumstance, if it is at all a possibility. seacat fucked around with this message at 10:47 on Jan 12, 2011 |
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Jan 12, 2011 10:43
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I am 90 credits deep into my BA, which have all have been paid for. So I need to pay for 30 more. . .And that is where I have a few questions. School will offer me about 7k in unsubsidized federal loans for last semester(Which was already paid for. .), and this semester. I know there is a limit to how much you can take a year, but since that is technically 2010-2011, when I refile this year I can take more right? I'm ineligible for subsidized loans, is there anyway to lessen this burden as I don't want to graduate with about 15k in loans?
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Jan 12, 2011 14:37
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A friend of mine had received a preapproval letter for a college loan at 1%. She lost the paper and doesn't know which bank it was from. Now is that just a bait and switch or can she call any lender and get that rate through some governemtn subsidy?
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Jan 14, 2011 23:03
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Gear Head posted:A friend of mine had received a preapproval letter for a college loan at 1%. She lost the paper and doesn't know which bank it was from. Now is that just a bait and switch or can she call any lender and get that rate through some governemtn subsidy? 
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Jan 15, 2011 02:12
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antwizzle posted:What changed with her living situation between Fall 2010 and Spring 2011 that she needs more money for the Spring, did she just use up her available cash reserves? Generally, for the long semester, you have to apply for a loan that is split evenly in two (for example, you can't get a $2000 Stafford loan for the Fall and a $4000 one for the Spring, it has to be $3K and $3K). AFAIK most universities on a traditional fall-spring-summer system do it this way. For this reason it's best to try to plan ahead so you don't run out of money mid-semester (not judging at all -- I've had a similar experience). Although your college does give you a financial aid package before the start of the long semester, it is not necessarily set in stone. Yeah, she used up her cash between Fall and Spring. She tapped out on federal assistance, so we figured we would wait for January, when she does her FAFSA again to apply for private loans or whatever. I don't quite know the specifics of the money she got, I know her school is about $15,000 per semester for tuition. After the Stafford loan, she covered the rest of the tuition costs for Fall / Spring with grants and scholarships enough to be getting $1000 back out of all the money. She met with a different financial aid person in-person at the office earlier this week than the guy who told her she wouldn't see money until June or July, and this lady said that didn't make any sense, and made it sound like she should be able to get money. She's written up a lengthy e-mail with more questions, and the process is kind of slowly moving along. She's too old to qualify for the PLUS loan. I guess we'll just continue on course, she'll talk with the less crazy financial aid people at her school's office and hopefully they'll work this out soon.
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Jan 15, 2011 04:21
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Yeah, this is definitely one that needs to be discussed with financial aid, preferably in person. I highly suggest she schedule an interview. The thing is, filling out her FAFSA this year isn't going to help her for pre-July founds because it's for the school year starting in July, not the previous year. Hope everything works out for her! antwizzle, you're the bestest! Pon de Bundy, yes, as long as you haven't reached your total aggregate limit. Each school year is a renewed eligibility amount. As for lessening the burden, the only thing you can try is talking to financial aid about increasing your federal loan amounts if that's what you're looking for, and chances are they won't be able to 
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Jan 15, 2011 06:59
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Chainclaw posted:
Hi Chainclaw, So it looks like your GF has used up her federal loan eligibility for the long semester. That sucks powerfully because she is now in private loan land, but of course you already knew this. Private student loans are (1) issued on horrible terms (see my post history/backtrack in the thread), and (2) are credit based, so hopefully she has decent credit history. Wiggy is right abouth the FAFSA -- it won't help her this semester. I can't say much about the FAFSA timeline because it's been that long that I honestly don't remember -- but from what I do remember she's pretty much "locked into" her last FAFSA statistics for the rest of the semester, and her new FAFSA results will apply to Fall 2011/Spring 2012 semester's financial aid package. "this lady said that didn't make any sense, and made it sound like she should be able to get money" is a pretty typical financial-aid-counselling session answer that still doesn't give you any answers In fact, that rings a bell to my college days when I was meeting with my counselor(a replacement for my previous counselor who had been fired for negligence) for a similar reason. Her exact words were: "Why did she assign you xxx loan in your package? That doesn't make any sense based on your FAFSA info!"You still don't mention what the total cost of attendance - total aid received thus far is for your gf, though. The thing is, student loans have to be certified by your university's financial aid department, as the money is sent to them, then they give it to you. There used to be quasi-student-lender places like MyRichUncle which, upon loan approval, would just mail you a check, but that place went belly up. Even if you've exhausted your total financial aid eligibility it is possible you can qualify for extra aid in the event of a hardship. This depends on the university though, and typically won't be more than $2-3K for the semester. ASSUMING you have leftover financial aid eligibility, the next steps should be: 1. Figure out how much aid your GF qualifies for at this point (total cost of attendance for the Spring semester - total aid received, this includes grants, scholarships, and any federal loans). 2. Figure out how much of that your GF needs to survive for the rest of the semester. 3. Have her contact finaid again saying something to the effect of "I need to initiate a (alternative/private) loan to cover my living expenses for Spring semester in the amount of xxx$". Ask politely to speak to a supervisor to explain your situation if necessary. 4. Fill out necessary paperwork and wait for your money, checking up on the finaid department in the process. I am obviously loathe to recommend private student loans in most situations. However, sometimes you really don't have a choice, e.g. not getting them leads to being evicted and not finishing your degree. Your GF should be able to secure these funds but be sure she reads and understands the promissory note.
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Jan 15, 2011 09:45
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Hi there, I am a recent college grad (Dec. 2010) and am now looking at paying back my student loans. I have a BFA in Art Education, if that matters any. I've mostly been subbing as my income. I've been considering the best way to pay back my loans. I am living with my fiance and his parents so we can save on rent. We figured if I can get a job locally, then we cant put all my income towards loans and my fiance's towards bills/groceries/etc. This is the "if all goes according to plan" plan. I may have to move to get a job, or a car breaks down, or something else happens that we don't expect. However, so far, he has paid for our bills while I finished my last year of college and now that I have an income, we're going to try living the same way, but with the extra money going towards loan. Onto the loans. I *had* a Sallie Mae loan for $3,000 at a 15% interest rate (I was a dependent with no cosigner, they really rape you on that), with the interest around $500 or so. This last semester I earned a lot in grants and scholarships, so what I got back in tuition refunds, I paid back this loan ASAP because it seemed likely to cause the most financial damage with that interest rate. I have a second Sallie Mae loan at $10,000 with a variable interest rate, currently sitting at 9.25%. The accumulated interest is now $3,206.81. I currently do not have any sort of repayment plan with Sallie Mae because for some reason they list my graduation date as December 2011. On my federal loans: The principal on my direct loans (a mix of unsubsidized/subsidized) is $28,500. Interest is at $479.97. I am currently listed on an Income Contingent plan because I wasn't sure how much money I'd be making in 6 months. However, these loans also list me as graduating in Dec. '11, and so it says my repayment begins in July of 2012. I'm not taking any chances though and am going to treat the loans like the repayment is due *this* July, in case of any mixup. Okay, my question comes in how to start repaying my loans. I am taking an amount from each pay check and am putting it towards my loans so that I can pay them off as soon as possible. My question is, do I put it towards Sallie Mae or my federal loans? I'm not sure which, because when it came to paying off the $3,000 loan, paying a huge lump sum was nice because it paid the entire thing, and I didn't have to worry about interest adding back up. I feel that if I pay small amounts, say $100 each pay check, into my $10,000 Sallie Mae loan with the 9.25% interest and $3000+ interest, that it won't make a huge dent in it and the interest will just add back up when it's calculated the next month. So since the interest accumulates slower in the Federal loans, I wondered if it'd be best putting my money towards that so I can get to the principal. Or should I just go after the Sallie Mae loan before monthly repayment begins? Thanks. e: P.S. I am waiting to consolidate on my loans until my 6 month grace period is at its end.
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Jan 17, 2011 01:41
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antwizzle posted:Hi Chainclaw, Great info, thanks. While compiling data for the above, we've run into a few more questions. For private loans, I found that SimpleTuition link in the first post useful, and my GF already had a list of about 6 potential private lenders. Is there a good review site for private lenders? The financial aid department at her school said they can't recommend a specific lender or something, she has to find the private loan on her own.
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Jan 17, 2011 02:12
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anaaki posted:Put the money towards the private loans. In addition to having a higher interest rate, they've got a smaller balance, so your cash flow picture will look better faster if you get that one paid off. Also private loans suck like you wouldn't believe, so even better. If your loans continue to stay in deferment, any money you pay would go to the interest that's been generated so far. However, the loan capitalizes when it leaves deferment, so what's interest now will become principle then, so it's as good as paying straight to the principle. While it's true that the private loan grows faster than the federal loan, you'll be paying enough to pay it down on top of the extra (or you will be soon), so you'll be making a dent in it with the regular payment. Any additional is gravy and will pay it down faster.
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Jan 17, 2011 04:16
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Chainclaw posted:Great info, thanks. While compiling data for the above, we've run into a few more questions. The finaid department probably can't recommend a private lender b/c they got in trouble at some point for taking kickbacks from SLM & Co, Chase Bank, or whoever. This is a good thing because it would be likely that their recommendation would help only them, not your gf. I have a lovely 134 page report titled "SPECIAL INVESTIGATIVE REPORT REGARDING ALLEGATIONS OF IMPROPRIETY AT THE UNIVERSITY OF TEXAS AT AUSTIN OFFICE OF STUDENT FINANCIAL SERVICES AND BY ITS DIRECTOR, DR. LAWRENCE FUCKFACE W. BURT" that I often send out to people to people to illustrate how shady these lenders can be. They make garbage-mortgage-loan lenders look like saints (at least the latter are dischargeable in bankruptcy). It is extremely important you read FooF's posts ITT and have your girlfriend read them, handily accessed by the following link: http://forums.somethingawful.com/showthread.php?threadid=2250971&userid=162058 (s)he has worked for Sallie Mae and sums up everything you need to know about private student loans. You can also read my raging posts on my personal experiences with them. TL;DR version: it doesn't matter that much, they all suck. Go with whoever gives you the loan.
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Jan 17, 2011 05:36
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To everyone answering, thank you so much! I've started school again, which means my hours are a tad wonky. If any questions go unanswered just drop a PM to me and I'll be sure to get back to you within the day. Thanks again to my helpers! You're doing awesome!
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Jan 18, 2011 01:50
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anaaki posted:T0MSERV0 is right on the money here. Do whatever it takes to pay the private loan, first. I feel awful that everyone I talked to borrowing from SLM in the last few years gets hosed so heavily -- even for all my extreme hatred of them, my interest rate is a cool 5.5% (although, being a variable interest rate loan, I guess as susceptible to douchebaggery as anyone). 9.25% is bad. 15% is highway robbery. Even my lovely rear end subsubsubprime auto loan wasn't 15%. I can see what you're saying about interest capitalization, but that's precisely why you should pay on your private loans first -- interest capitalizes, so after a time your $10,000 loan will become $13206.81, and then you'll be charged interest on that $13206.81, not on the original principal. Just compare your interest accrued to principal ratio on the two loans. Compound interest is an incredibly powerful force and that's why these private loans balloon so massively so quickly and why people get hosed up the rear end so powerfully -- you don't want to reduce your Stafford loan principal by $5000 while your private loan goes up $20000. Also, it's a variable rate loan, so there is a lot more uncertainty there that you don't want to play with. I'm kind of in a similar lovely situation with SLM at the moment - my payments are going to interest only, but as soon as I pay off my car I'm going to throw extra money in their face as much as possible. Also keep in mind that if you do face a job loss, unnecessary medical expenses, or whatever, you will be much more hosed with Sallie Mae than with whoever services your federally-backed loans. The only thing they offer for a financial hardship is a 3 month forbearance (not deferment), interest still accumulates and capitalizes at the end of the forbearance, and you have a very limited amt of forbearance time. I know nobody expects to be stuck in such a lovely situation, but in this economy nothing is a certainty. You really want to free yourself from that company as soon as possible. One thing that's not completely clear about your post: are you planning on putting your federal loans on deferment so you can make bigger payments to Sallie Mae? This may not be a bad financial idea but be carefully because technically deferements are only *supposed* to be given in case of an economic hardship (ie you literally can't make the payments on your income). Honestly though when I've gotten mine they haven't even asked for proof of income/expenses for my Stafford loans (although my university sure as hell asked for that proof for my Perkins loans). Also call SLM ASAP and update your anticipated graduation date -- it's good that you are not trying to play off their mistake to avoid repayment for another 6 months but call them, and get all your ducks in a row, and try to get it in writing. I can't think of how it would gently caress you, but I'm sure they can figure out something. Also I commend you greatly on having the financial responsibility to make this sacrifice so best of luck.
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Jan 18, 2011 08:08
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This thread is really long and I think I've just confused myself to hell and back trying to skim the first couple pages for what I want. Instead of making assumptions I'll just post my situation and hope for good info! I graduated last month, but since I was an hour short of half-time status it ate up my grace-period so now I'm paying back everything except loan #1 (see below) because for some reason, every couple of months they mail me an identical letter with my repayment period scooted forward a couple months. It's now not due til April when it was originally due in November. Should I count this as a blessing, or start paying it anyway? The total paid for the life of the loan it quoted me changed a grand total of $13. Firstly, all my loans were awarded from my school through FAFSA, so am I correct in assuming they are not private loans, even though two of them were bought/sold to random companies by the dept of education? Secondly, I'd like to consolidate my total $14,000 which breaks down to about: 1. Sub $5500 at 5.6% 2. Sub $4500 at 6%, now reduced to 5.75% 3. Sub $1000 at 6.8%, now reduced to 6.05% 4. Unsub $3000 at 6.8%, now reduced to 6.05% (same company as #3) I am concerned about one piece of mail from lender #3/4 I've gotten that says I get a .75% reduction if I sign up for auto-payments and it's on time, but reductions are removed if the loans are consolidated. Not fair, that's exactly what I want to do! #2 says I have a reduction of .25% for signing up with auto-pay, but as far as I can tell it doesn't say it removes the rate reduction if you consolidate. Its website does, however, say "In most cases, consolidating fixed rate loans can produce a consolidation loan with a higher interest rate than the original loan." How true is that, and how can I not be a most-cases? The bottom line is, I want one big easy payment that is auto-withdrawn from my bank account, has the smallest interest rate possible, and I want to pay off my loan as fast as I can (preferably 5-7 years) because I hate the feeling of being in debt. God forbid I ever buy a house, but I feel like I got out of college pretty cheaply and just want all those loans behind me. Anyway, what's the best course of action for getting everything arranged to what I want? Thanks Oh yeah, the first page recommends North Texas Higher Education Authority. I'm in north Texas. Should I call them? I mean, that was a pretty convincing blurb from the OP but I assume it all depends on your situation. Edit: Oh! I also have about 3 grand in savings bonds from when I was a baby. If I used all of that to pay off my whole unsubsidized loan, would that help my consolidated interest rate a lot? Damn Bananas fucked around with this message at 22:54 on Jan 18, 2011 |
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Jan 18, 2011 22:44
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