High interest rate for student loans

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Irissy

Irissy

Balenciaga's lover
O.G.
Oct 29, 2005
10,726
88
#1
I just started the process of paying off my outrageous student loans. I have part fed loans and part private loans. I'm very happy with the interest rate on the fed loans since I already locked in the rate last year, but OMG... I just noticed the interest rate for my private loans, they are about to hit 10% this month!! :amazed: I did a calculation and realize 1/2 of my monthly payment goes toward paying off the interest rate alone! What the mother bleeping is going on here!! :evil: That money could have gone to my bag fund or other investments... Arrrrgggggg!! So I made a decision: I'm going to see if I can pay off my private loans in 1.5 years because I CANNOT STAND seeing the bank profit that much interest off of me. As for the fed loans, I'll just take my time. :lol: Anyone got a better idea?
 
#3
If people can re-finance their mortgages, I wonder if you can re-finance your student loans.

I am fortunate that I do not have any student loans. Initially, my college education was funded by a private scholarship. When that ran out, my parent foot the tab until I dropped out. Yep, I was a college dropout. Not long, I felt guilty and decided to finish what I started. I eventually got an entry-level job at a college that paid for the remaining classes I needed to graduate. So, that is how I basically obtained my degree without getting into debt. Thank goodness for tuition reimbursement programs.

Irissy, there has to be a way to get a lower interest rate. Speak with someone in the financial aid office or the institution overseeing your loan. I wish you all the best. If you do decide to get an advanced degree, work for an employer willing to pay for it.

Good luck!
 
#4
Thanks, baglady. I'm going to look into more about student loans and see if I can do anything about it because the interest rate is just pissing me off here. I think the best bet is to just pay it off asap so it won't be on my mind even though that might be less bags for me this year. I have friends who are terrible with their savings and I'm trying not to go their route.

I'm also very proud of your decision to go back and finish your schooling. Karma for you!!
 
#7
amanda said:
you should be able to refi or consolidate your student loans at a lower rate.
Click to expand...

Yep. That's what I did, before June 2005, and I got a rate somewhere around 3%. I had Federal Stafford Loans and consolidated them through Sallie Mae. I have one low payment, and I know it will take a long time to pay them off, but at least I'm not worried about getting clobbered by high interest rates.
 
#8
This might be the dumbest question ever, but how much does an average education cost over there?
And how come you have to loan as a student? Don't the parents finance the education?
 
#9
I consolidated my loans over the summer right around the time that interest rates were going up again. Everything is now under one payment and the interest rate is around 4.5% locked in for the next 10 years.

Lia - I went to Northeastern University in Boston - when I was there the tuition was around $28,000/year plus housing, etc. Now I think it is around $35,000/year. I graduated in 2001 with $60,000 in student loans. My parents paid for 1/2 the tuition, loans for the other 1/2 and I paid for the room and board myself. I knew when I choose Northeastern that I would have to take on lots of student loans. My parents could've paid the whole thing - but then I probably wouldn't have put as much effort into my studies if I knew that I wasn't going to be stuck with the bill at the end...
 
#11
Lia said:
This might be the dumbest question ever, but how much does an average education cost over there?
And how come you have to loan as a student? Don't the parents finance the education?
Click to expand...

I think college tuitions have hit the roof...well at least at the school that I go to. At GW, we have a fixed tuition of almost $50, 000, so basically if you take the minimum twelve credits, or if you take the maximum 17, ur paying 50, 000!! Its crazy, just the other day, I went into student accounts and they are charging me an extra 3000 dollars because I am taking 18 hours, one hour over the limit!!!

Good luck with the student loans Irissy!! I sure hope you can consolidate so you dont have to worry about the interest!
 
#12
I'm starting to freak out about graduating from law school because of my massive loan debt. I graduate this May and don't yet have a job lined up. I have a good amount of private loans and my interest rate is around 10% as well. I guess I'm going to try to pay off the private loans first, but it's going to be hard. I'm trying to look into getting another loan with a lower interest rate and paying them off that way.
 
#13
lawgirljenn said:
I'm starting to freak out about graduating from law school because of my massive loan debt. I graduate this May and don't yet have a job lined up. I have a good amount of private loans and my interest rate is around 10% as well. I guess I'm going to try to pay off the private loans first, but it's going to be hard. I'm trying to look into getting another loan with a lower interest rate and paying them off that way.
Click to expand...

you can just consolidate your existing loans, you should be able to get a much lower rate that way.

and my education is not nearly as expensive as most people's. i go to a state university to begin with, and then Georgia has a program called the HOPE Scholarship; basically, if you graduate from any high school in GA with a B average or better, the state will pay your tuition to any state university that will let you in. my parents take care of room and board, meal plan, and books, and i am, thankfully, student-loan free.

when i was in high school, i got in to Boston University and thought about going, but it costs many times what my school does and is actually ranked lower in national college rankings. plus they don't have a football team, so i couldn't go anyway, lol. my parents promised that they'd pay no matter where i went, though, but i love where i am and wouldn't change it for the world.
 
#14
amanda said:
you should be able to refi or consolidate your student loans at a lower rate.
Click to expand...

I already consolidated my fed loans, but the private loan institutions will not let me consolidate or lock in my rate because they don't need to by law. Damn the private loans!! :evil:
 
#15
Cristina said:
Yep. That's what I did, before June 2005, and I got a rate somewhere around 3%. I had Federal Stafford Loans and consolidated them through Sallie Mae. I have one low payment, and I know it will take a long time to pay them off, but at least I'm not worried about getting clobbered by high interest rates.
Click to expand...

I did the same too for my fed loans. I got my rate locked in around 2% last year. I absolutely LOVE the rate!!! :love:
 
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