Student Loans? Help, best way to go about paying these back!!?
Asked by marie76444Hubbies student loans: Break Down! 1. balance: 2,625.00 Interst Rate:6.8% FIXED SUBSIDIZED 2. Balance-$4,000.00 6.8% Fixed UN-Subsidized Accured Borrower Interst-$115.69 3. Origianal Loan: $1,500.00 6.8% Fixed Subsidized 4.Balance: $1,334.00 6.8% FIXED UNSUBSIDIZED ACCURED BORROWER INTEREST $0.99 Balance:$ 17,500.00 14.25% Interest rate type:Variable Unsubsidized Accrued borrower interest:$1,591.18 He dont have to pay anything until 2010, BUT We were wanting to start paying on this loans. We already talked to his loan specialist (whatever you call them ppl) said that it would not effect us if we pay now. We were gonna send a 150-200.00/month. What is the best way to go about paying these loans? Which should I get rid of first. They said they apply the money to the outstanding interest rate then the principal. And advice thanks.!!
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Answered by Tiare
I dont agree with paying the smaller ones in this case. Put the subsidized loans on the back burner, they are not going to cost you any more in 2010 than they will today. Yes it is nice to get bills out of the way, but you have to think about what is going to happen with that big loan if you let it sit and grow. He has a big big loan (17,500)with a huge interest rate of 14.25, variable, unsubsidized. That one would be making me very very nervous if I were you. You really need to work on that one or it will snowball and bury you. You could easily end up paying back 50,000 on that one or more if you dont nip it in the bud. You do realize that the 1590 in interest is going to get put into the loan amount and then they are going to calculate more interest on the interest? and the rate is variable meaning it can go up even higher? do you have a home you can pull some equity from to pay that one? can family lend you money to get rid of that one, or can you put up more than 200/month? the others can wait, but that one is going to grow and grow and grow in the next 3 yrs-you wont know what hit you if you dont take care of it early. I sure hope he is a doctor or something
I dont agree with paying the smaller ones in this case. Put the subsidized loans on the back burner, they are not going to cost you any more in 2010 than they will today. Yes it is nice to get bills out of the way, but you have to think about what is going to happen with that big loan if you let it sit and grow. He has a big big loan (17,500)with a huge interest rate of 14.25, variable, unsubsidized. That one would be making me very very nervous if I were you. You really need to work on that one or it will snowball and bury you. You could easily end up paying back 50,000 on that one or more if you dont nip it in the bud. You do realize that the 1590 in interest is going to get put into the loan amount and then they are going to calculate more interest on the interest? and the rate is variable meaning it can go up even higher? do you have a home you can pull some equity from to pay that one? can family lend you money to get rid of that one, or can you put up more than 200/month? the others can wait, but that one is going to grow and grow and grow in the next 3 yrs-you wont know what hit you if you dont take care of it early. I sure hope he is a doctor or something
