Could I be paying much less?

[TyrantT316]

Hello, I am new here. I have private loans with SallieMae. I had my student loans first with Direct Loans, then I consolidated so that 17k is now under Sallie Mae. Then I also have some private loans directly with Sallie Mae totaling 35k.

 

Those SM private loans were requested and disbursed on 4 occasions. So I am listed to have 4 private loans that total 35k and listed to have 2 consolidated loans totaling 17k.

 

Each of the 4 SM private loans are at 10.5% interest rate. The other two consolidated are at 2.8%.

 

My balance is about 53k, but after repayment which is scheduled to go through to 2026, I will have paid 85k. I am only 23 now and will be 42 then. Does that type of interest make sense? Should I really be paying that much more?

 

Any comments or advice is greatly appreciated.

 

Thanks

 

Christopher

[Cynic]

Prime rate is 8.25%.

 

Prime rate + 2 is reasonable. Pay more per month, pay it off fast.

 

Consolidating some federal loans at the lowest rate ever was luck. 2.8% is the lowest in history. View it as such.

[coorslight]

My balance is about 53k, but after repayment which is scheduled to go through to 2026, I will have paid 85k.

 

Amazing isnt it? And I imagine its graduated so they are taking the interest up front and very little is going toward the principle.

 

I was paying 4x my amount due trying to pay off my loans early; when I noted they were just taking more for themselves and little off the principle - I said screw that Im not going to pay them 25k+ in interest so I wrote the biggest check I ever had and paid the loan off.

[Long Road]

Does that type of interest make sense? Should I really be paying that much more?

 

If you intend to take until 2026 to repay the loan, then in a sense it does make sense. What would you charge to lend someone that much for that long?

 

Coors did the smart thing and got them the money one way or another. If you can find a cheaper way to finance all or part of the debt, by all means it would be in your best "interest"...