DH owes a lot of $$ on his school loans.... We have some $ in the bank but not enough to pay his loan off in full.
I'd like to try to negotiate with them on accepting what we've got as payment in full. So my question is...has anyone done this? Any advice on what to say? Is this a lost cause?
Samanthas Mom
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Re: School Loans....advice needed
you can call sallie mae or others and consolidate- also, you can defer for a year or more if you cannot pay them now
februarybride
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We're trying to pay in one lump sum but we don't have the exact amount so I wanted to try to negotiate with them to take what we have as payment in full.
swags1016
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Re: School Loans....advice needed
I don't know if they will do that especially if they are any of the federally subsided loans (I have both). But please let me know if they do. I would love to make mine disappear!
BTW- look on the back of them- some of them have ones that get cancelled if you are a teacher in the shortage area, a nurse and things like that. I got one cancelled from that. I think it was a Pell Grant though
Crisco718
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Re: School Loans....advice needed
I am not sure if you can do this with a student loan, but be careful because this would be considered forgiveness of debt and would have to be included as income on your taxes. Also make sure there is no negative impact on his credit rating.
februarybride
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Never thought of the forgiveness of debt thing... I would of thought this would be a good thing...
LisaT
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Re: School Loans....advice needed
also keep in mind, with interest rates as low as they are, it may make more financial sense to keep the loan rather than drain your bank account (that money could be making you money). Look into consolidating and locking in a low rate and safely investing what you have in the bank.
yabbobay
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Re: School Loans....advice needed
I agree with Lisa...my DH is dying to pay off my loans...but I keep saying at 4 1/2 % I'd be stupid to do so...
look into paying on time for 2-4 years...they usually lower the interest rate if you do that
februarybride
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Re: School Loans....advice needed
All very good points... we've got lots to think about. He pays almost $800 a month for his loans - it's ridiculous!
yabbobay
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Re: School Loans....advice needed
wow...that is a lot!!!
februarybride
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Re: School Loans....advice needed
I know! That's why we want to get rid of it.
He may get a bonus that might take care of a large part of it. Plus some of what we have in our account. Maybe he should just pay it down with the bonus $$ and make normal monthly payments!
yabbobay
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Re: School Loans....advice needed
you reminded me to pay my loans...and I looked at my interest...one is 4.2...and the other is 3.4!!!
maybe you can talk to them about getting a better interest rate?
palebride
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Re: School Loans....advice needed
i doubt they'd just eliminate part of the loan - but if ou pay a big chunk of it they might lower the monthly charge so you can pay the remainder off easier. if you use sallie mae - you should give thema call and see what they say - they're really helpful!
ddunne23
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Re: School Loans....advice needed
Way back when I consolidated my loans with sallie mae and they have been great with the interest. I agree with the others that you may want to just invest that $$ rather than pay off the loans. My interest rate was recently reduced again for on time payments to %1.97! All for just paying ontime for 48 months consecutively. Plus I get a reduction for auto-matic bank draft. Just somethings to take into consideration before you use all your $$ to pay off the loans.
