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Sally Mae Loan
Question: I have a sally mae loan i've gotton behind on by two months. Now it is paid up. the total never seems to go down what can i do about the interest rate and the amount i am paying?
Answer: Before you take any action in regard to this loan, you should find out the specific interest rate, balance, and loan terms, to put numbers to your observationthat your monthly payments are not effectively reducing the balance of the debt.
For almost all student loans, including Sallie Mae loans, you can do a one time consolidation and significantly lower the monthly payment. See the Bills.com section to see if you can save on your student loans:
http://www.bills.com/student-loans/
You should also calculate how long it will take you to repay the loan and how much it will cost you. Plug in the remaining balance on your student loan, the interest rate, and the monthly payment amount. Check the “show amortization schedule” box, hit calculate, and the calculator will show you the cumulative interest you will pay on the loan. You can then play around with different
monthly payment amounts to see how much paying extra each month will reduce the interest paid on the loan. For example, on a $10,000 loan at 8%, if you pay $300 per month, it will take 38 months to repay the loan at a cost of $1350 in interest. However, if you double your payment to $600, it would only take 18 months to pay off the loan and the interest would only be $645.
By analyzing different payment amounts, you can see how increasing your monthly payments will affect the amount of interest you will pay on the loan. For more information about student loans, I encourage you to visit the Bills.com Student Loan Information page at http://www.bills.com/student-loans/
If you find that the terms of your current
loan are untenable, you may want to consider consolidating your loan with another lender. You can find out more about student loan consolidation by visiting
Student Loan Advice
If you are able to find a lender willing to offer you more favorable loan terms, you may be able to significantly reduce the time and cost required to repay this loan. As mentioned above, it is almost always in your best interest to pay more than the minimum payment, as it can significantly reduce the cost of the loan. Best of luck with resolving this debt. I hope the information I have provided will help you Find. Learn. Save.
Best.
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by Dolores on Tuesday 9th October 2007 11:49
I would like to ask a question concerning Sallymae loan.. My friend's son took a loan for school and his father co-sign with him after graduating his son was paying his loan back when unforuated his son just passes away at 25 years old, what happens now?
2. Posted by Nithin on Tuesday 9th October 2007 16:56
Unless the federal rules allow for a write ofF of the debt, then the estate (if there is one) would be held liable for repayment of the debt. Private loans work in a different manner, you should contact the lender to confirm as to what would happen in the scenario that you stated.
3. Posted by lindakedigh on Wednesday 23rd April 2008 20:03
I was wanting to know if it is possible to get a loan to buy your first home or if you can only get second mortgage loans.
4. Posted by Parker on Thursday 24th April 2008 09:00
Sure - you can get a loan for your first home. In fact, FHA has many first time homebuyer loan programs to help people with a smaller down payment still buy a home. I'd recommend that you check out the FHA Loan Center: http://www.bills.com/fha-loans/ Or apply for a new loan: https://www.bills.com/homeloan/mortgage_refinance