SicK TypeS

The interest rates on my Sallie Mae private loans are insane, ranging from 13 to almost 16%. What's a smart way to approach my loans so I can climb out of this deep hole.

Should I apply for another large loan from somewhere else so I can pay off Sallie Mae in full?

Are there any programs for new grads who want to consolidate private loans?
Most everything I find seems to be geared toward Federal Loans only.

I googled and have spend countless hours on the phone with Sallie Mae, I'm lost.

doopstr

There seems to be a lot of good info here that may help. http://blog.wellsfargo.com/StudentLo...t_loan_in.html

Read the article and the comments.

I'm starting to fully understand why student loans suck. The government should get out of the student loan business. If students had problems getting loans it would probably be a good thing since the institutions couldn't just decide to raise tuition every year. They get away with these insane tuition rates because the government is willing to back the loans. The private lenders are in a good spot because they charge a high variable rate and the student is on the hook until it's fully paid because bankruptcy or death can't even get rid of the loan. The students don't really understand money when they are 18 because the public schools didn't teach them about it. They sign the docs and don't realize they are screwed until they graduate.

dmikon

Spend less. Much less. Apply savings towards loan.

gatrhumpy

iTrader: (1)

Have you tried to call ACS-Education.com?

Emailsupport@acs-inc.com

1-800-835-4611

I have my student loans with them once I consolodated immediately after I graduated. My interest rate is 2.875% (of course, this was back in 2003 when I consolidated).

BraveDemon

^ This is pretty much the only real way to pay down student loans currently.

Unfortunately many lenders won't even offer consolidation anymore, and if they do, they want some ridiculous interest rate.

And Humpy, I would kill to have your interest rates.... I graduated from law school about 3.5 years ago and my rates range from 6-8.5%. I can't even believe that student loans are hitting interest rates of 10%+. Guess I'm telling my kids (when I have them) to not go to grad school.

SicK TypeS

Thanks for the help.


Wells Fargo is offering a personal loan with a 9% interest rate. They also offer student loan consolidation with a fixed or variable interest rate. The fixed rate is roughly 8-10%, but the variable rate is around 4%-no cap. The variable rate looks attractive but it's a gamble since I have no idea what the rate will be in the coming months.

A 9% interest rate still sucks, but it's better than my current 15% with Sallie Mae.

Any reason not to apply for a personal loan with Wells Fargo so I can pay off Sallie Mae in full?

Does anyone know of other places that offer personal loans at a lower interest rate?

I know the government offers tax breaks for student loans, but from what I understand it isn't much.

shrykhar

16% ...

JBlueCLS6

iTrader: (2)

If I'm not mistaken, wasn't Obama attempting to pass off a bill that would benefit someone in your exact situation where your interest rate would be reduced?

TLtrigirl

iTrader: (1)

wow! 16% holy crap. even before i consolidated mine way back when (03 i think), my student loans were in the 5-7% range. after consolidation, they are in the 2-3% range with sallie mae (these are fixed rates). when i took private loans out, i paid those off first b/c the interest was ridiculous and i swear was accumulating by the hour. did not know the state of educational loans was so...outrageous.

only 3-4 more yrs and i'll be FREE!

Professor

See a head doc for a few months, and you can get your entire loan dismissed on a disability. If the system provides for it, then work it.

thunder04

iTrader: (1)

Student loans are the pits.

As far as I know, you are screwed when it comes to private loans. I have some private loans through Sallie Mae. Luckily for me, I got them before they jacked their interest rate. Mine are in the 4% range.

I also have government loans (Stafford loans). These, depending on your income (based on your AGI), give you some flexibility in payment (Income Based Repayment may be option).

Unfortunately, like others have said, the only true way out is to pay them off. Check with Sallie Mae and ask them how you can ensure extra payments go to principal. Once you know how to properly submit extra towards principal (I had to fight with them on this for a while), send them as much as you can monthly.