Best course of action?

[Lainee]

Hi all,

 

DH has a student loan through Wells Fargo - no late pays or anything like that. Issue is - the APR is adjustable. We're watching the APR just go up and up and up. In the last several years we've hardly made headway becuase of the high interest.

 

QUESTIONS -

 

Has anyone had luck just calling them up and asking them for a lower fixed rate? I mean, our credit is good and we could just re-fi if they don't help us.

 

If no, any suggestions for a good place to go for a re-fi? We get lots of offers in the mails, but they don't seem legit.

 

Thanks!

[LynnInMN]

Is this a private loan or a government loan??

[Lainee]

Private loan.

 

Ideas?

[LynnInMN]

Private loan.

 

Ideas?

 

The terms of private loans are generally variable and as such, they will not lock them in. Those are the terms of the loan. You could refi it privately but more than likely your payments will go way up. You would probably loose any interest deduction for student loans that you might have left.

[Lainee]

Private loan.

 

Ideas?

 

The terms of private loans are generally variable and as such, they will not lock them in. Those are the terms of the loan. You could refi it privately but more than likely your payments will go way up. You would probably loose any interest deduction for student loans that you might have left.

 

So let me see if I understand - I *could* possibly re-fi and get a lower rate, but I would have larger minimum payments? I actually don't think I would mind that so much. See, our income is to the point that our interest deduction is not that much so I'd be wiling to pay more to pay the loan off faster without paying the interest.

 

So - you think that is an option??

[LynnInMN]

You would have to refinance it yourself, away from the student loan system. How much do you owe now?? Interest rate?? Is your credit good enough to get an unsecured loan?? And are those interest rates any lower?? Or a home equity loan?? You have to weigh things out to see what works best for you.