STYLETHREAD -- LET'S TALK SHOP!

jacL · Coach

student loan repayment

honey · Gucci

i just consolidated mine too. i'm so bad b/c i got the letter in the mail and skimmed it, but didn't really read it until now. anyway i don't think it's a bad idea. you've consolidated and locked in a low interest rate which is good. i think you can send in extra money, but i'm not sure, and it might depend on who you consolidated with. i used direct loans (the federal gov's program) and i'm going to call them and find out if that's correct.

also look at the information they sent you. in my package they broke down the different payment plans in terms of # of payments, interest rate, initial payment, max payment (which i'm assuming means the maximum amount they'll ever require me to pay), interest paid, and total amount paid back. for me (i have a substantial chunk of debt -- oh the joys of private college) the difference between the graduated plan and the extended plan (next plan up) is neglible and amounts to less than $1000. so you're probably not going to end up paying that much more in the long run, so if it's your best interest financially you should do it.

eta: for clarity

-- Edited by honey at 09:14, 2005-08-15

Deuce · Dooney & Bourke

I hope this doesn't show up twice. Second try to submit.

Justification:

Better to make a payment schedule that you can actually pay. (pay extra when you can) Than to have fees and late payments and ruin your credit.

Good Luck

jacL · Coach

Thanks for your thoughts. I think I am going to go with the graduated plan because I cannot even afford the standard payments right now. It is more in the long run, but it will help me right now to get off my feet. I think in a year or two I will be able to make double the payment so that should help offset the extra cost.

kenzie · Chanel

Deuce wrote:

I hope this doesn't show up twice. Second try to submit. Justification: Better to make a payment schedule that you can actually pay. (pay extra when you can) Than to have fees and late payments and ruin your credit. Good Luck

Ditto. I'm on the graduated payment plan as well. I'm actually deferred right now b/c I'm back in school, but I'd rather have a payment plan that doesn't wreck my credit or wreak havoc upon my finances than worry about paying a little more in the long run. I usually pay more than the minimum payment (there's no penalty for this), even if it's only $5 more, but every little bit helps. Sometimes you just have to do what you have to do.

-- Edited by NylaBelle at 09:12, 2005-08-15