Should I Even Bother Paying?

[amy83181]

Hi,

I currently have 2 student loans. One with sallie mae and one with citibank. My citibank loan i am not worried about since its a locked low interest rate, but my sallie mae loan is for about $20,600 and its at 8% variable. I am currently in vol forbarence with my sallie mae loan. If i pay down like $200 or so right now would it make a difference in anything or should i not even bother? The thing is towards the end of the year or begining of next year i will come into some money. Hopefully enough to pay the loan off in full. Should i wait until that time or should i pay as much as i could now, maybe about $200 a month or less? What would be the best way? Any thoughts are appreciated. Thanks!

[amy83181]

Anyone have any ideas? Please someone reply. This dilema is driving me crazy... :roll:

[amy83181]

Bump, does anyone have any thoughts?

[stella]

I would think you would want to pay the interest. wait, is it accruing interest now? do you need the money for other places, like other creditors? its seems more like a personal choice.

[amy83181]

Stella,

Thanks so much for answering back. I thought no one was ever going to answer my post. To answer your questions, yes interest is accuring now and it has been ever since they were disbursed.

 

The extra money that i have now i keep in savings because i dont have any savings. Just in cause something would happen i would have a little extra money if needed.

 

What i was thinking is 2 things. 1, if i pay the interest now, at least some of it the loan amount will go down and so will the interest accured. 2, if i wait the difference of the interst would probably be slim and if i come into that money i can just pay it off.

 

I can never make decisions and i just dont know which one to pick. The extra money is great but the though of my loan accuring about $135 in interest every month is stressing me out....

 

Ughhhhh what to do... :roll:

[domino121]

Whatever you do, don't default on the loan. It is very difficult to get it back in good standing.

 

You have some options. You can consolidate and lock in a low interest rate, and make payments.

 

Or you can pay if off if that works for you.

 

Remember, student loan interest is deductible on your taxes, so you may want to consolidate and just make the payments.

[BAT777]

Hi,

I currently have 2 student loans. One with sallie mae and one with citibank. My citibank loan i am not worried about since its a locked low interest rate, but my sallie mae loan is for about $20,600 and its at 8% variable. I am currently in vol forbarence with my sallie mae loan. If i pay down like $200 or so right now would it make a difference in anything or should i not even bother? The thing is towards the end of the year or begining of next year i will come into some money. Hopefully enough to pay the loan off in full. Should i wait until that time or should i pay as much as i could now, maybe about $200 a month or less? What would be the best way? Any thoughts are appreciated. Thanks!

 

edited to remove solicitation......fla-tan, Forum Moderator

[KimH]

Whatever you do, don't default on the loan. It is very difficult to get it back in good standing.

 

You have some options. You can consolidate and lock in a low interest rate, and make payments.

 

Or you can pay if off if that works for you.

 

Remember, student loan interest is deductible on your taxes, so you may want to consolidate and just make the payments.

 

Echoing here what was said. Don't default. Just don't.

 

And a huge YAY! on the interest deductible on taxes thing. Made my refund a real pretty one this year.

[domino121]

Have you considered consolidation? After July 1 or so it will be the lowest interest rate ever offered. You will have that rate for the life of the loan. It might also offer you an opportunity to defer or forebearance if you need more time.

 

Just don't default. It will haunt you forever.