Refinancing Federal Student Loans

[erin1715]

Live is Wisconsin? Me and my DD were bombarded with consolated letters when she graduated. She and her husband both work in the public sector and she does not qualify since she consolidated. I read an article that the percentage of people qualified for the forgiveness program is like 3% out of 100. There are so many hoops and loop holes, it is nearly impossible to qualify. Why, why does the government make it impossible.

No, I live in lovely New York. The only reason we're still here is because of family.

Are you sure it's a federal loan rather than a private loan?

My federal loans the vast majority of the bill goes to Principal.

However my private loans are the opposite where majority goes to interest rather than principal.

How far you into your repayment period with your federal loans?

I know you weren't asking me, but my consolidated private loans have a smaller interest rate than my husband's consolidated federal loans. He pays abundantly more in interest than I do.

 

[Mackenzie Click-Mickelson]

I know you weren't asking me, but my consolidated private loans have a smaller interest rate than my husband's consolidated federal loans. He pays abundantly more in interest than I do.

Yipes then that sucks.

I should say my federal loan is a 10year repayment period whereas my private loans are a 20 and 25 year repayment period (I do not plan on it taking that long to get rid of the debt though)--maybe that's the difference? IDK my federal loans originated in 2006 and were 1 loan per year for 4 years total. My private loans originated in 2006 and then 1 more year in 2007--maybe that's the difference as well?

I should note none of my loans are consolidated. Prior to my husband consolidating his federal and private loans together under a new company his federal loan was the same formula as mine in that the majority of the payment went to pricipal vs his private loan (his private loan though wasn't as bad interest-wise to begin with compared with mine though).

 

[erin1715]

Student loans are so confusing and nobody is helpful - not private lenders nor the government.

 

[Minnesota!]

Are you sure it's a federal loan rather than a private loan?

My federal loans the vast majority of the bill goes to Principal.

However my private loans are the opposite where majority goes to interest rather than principal.

How far you into your repayment period with your federal loans?

Definitely federal - my interest rate is 5.625, whereas the offers I have received for private are around 2.5 - 3.5%.

Still tossing the idea around - we are hoping to move here this summer and I really don't know if I should take on a new loan right now - but, in essence, I would just be transferring the debt, correct - so if I have 20K in fed student loan or 20K in private loan, my credit should look the same, right? Not sure how that works..

 

[Mackenzie Click-Mickelson]

Definitely federal - my interest rate is 5.625, whereas the offers I have received for private are around 2.5 - 3.5%.

Dang then the private loan market has completely and utterly changed in 12/13 years. None of the private loans anyone around me got was below the federal loan rate. I can see consolidating as something different though.

Still tossing the idea around - we are hoping to move here this summer and I really don't know if I should take on a new loan right now - but, in essence, I would just be transferring the debt, correct - so if I have 20K in fed student loan or 20K in private loan, my credit should look the same, right? Not sure how that works..

On my credit report it's just under 'student loans' basically. It's not listed out as private or federal loans it's just counted as loans I have.

If you refinance, your old loan would go away on your credit report and be replaced with the new loan. It may however take a few months for it to fully reflect on your credit report.

 

[Minnesota!]

Dang then the private loan market has completely and utterly changed in 12/13 years. None of the private loans anyone around me got was below the federal loan rate. I can see consolidating as something different though.

On my credit report it's just under 'student loans' basically. It's not listed out as private or federal loans it's just counted as loans I have.

If you refinance, your old loan would go away on your credit report and be replaced with the new loan. It may however take a few months for it to fully reflect on your credit report.

Thanks! I figured that 20K is the same as 20K (my loans are more than that, but that is an easy number to work with!). I just didn't know if private loans showed/dinged differently on credit than student loans..

I am going to stop in my credit union today to have a chat with them..

Thank you, all!

 

[WDW_fan_in_TX]

I had about $60k in student loans that I've paid down to just above $19k. I've tried calling to see if I can get the payments deferred for a couple of months since they cut my pay by about 1/3 at work. Was going to try to get them cut while I looked for another job (I'm still working at the job that cut my pay). But they said I don't qualify even though I've been paying every single month for over 14 years. It's really sad to be honest.

 

[Mackenzie Click-Mickelson]

I had about $60k in student loans that I've paid down to just above $19k. I've tried calling to see if I can get the payments deferred for a couple of months since they cut my pay by about 1/3 at work. Was going to try to get them cut while I looked for another job (I'm still working at the job that cut my pay). But they said I don't qualify even though I've been paying every single month for over 14 years. It's really sad to be honest.

Have you looked into Forearance if it's a federal loan? You'd still rack up interest but you wouldn't have a monthly bill for X time.

 

[Budzooka]

I just refinanced mine a few months ago through a private lender, MOHELA. I got a good rate and a plan to get this paid off instead of just letting it continue forever. I got a good rate, and the application process was a piece of cake.

 

[Juliet25]

You know what, I just checked and they are consolidated with the federal government - interest rate is fixed at 6.25%. That is criminal.

Mine were also consolidated almost 20 years ago. My interest rate is 7.5%! It’s nauseating. DH’s loans are at 3.5%.

He should be eligible for PSLF in Oct, but I have no faith it will be around.

 

[WDW_fan_in_TX]

I called the company to ask about having them deferred, and they said I don't qualify. It'll get paid off eventually (probably in about 5 years). Then all of that extra money can go into our budget.

Have you looked into Forearance if it's a federal loan? You'd still rack up interest but you wouldn't have a monthly bill for X time.

 

[dosekies]

I looked into refinancing my loans and it wouldn't really do much to help me. I graduated with about 60k in loans and am trying to pay them off as quick as possible. Currently focusing on the private loan - down to 16.5k from 30k in less than 3 years right after graduation!