What can I do? Can I consolidate them with my federal (stafford) loans? Will they negotiate for a lower rate?
I didn't know what I was getting myself into
Full Version: Advice on what to do w/private loans?
I took out 2 private loans with Wells Fargo approximately 5 years ago. They are just killing me. I've paid the interest on the loan through school but even since I've graduated (2 years ago) I still haven't paid down much of the principal. I pay $125/month and only *$20* of that goes towards principal. The rate that I'm paying is 12.15%!
What can I do? Can I consolidate them with my federal (stafford) loans? Will they negotiate for a lower rate?
I didn't know what I was getting myself into
What can I do? Can I consolidate them with my federal (stafford) loans? Will they negotiate for a lower rate?
I didn't know what I was getting myself into
QUOTE(jm1981 @ Feb 1 2007, 08:42 PM) 
I took out 2 private loans with Wells Fargo approximately 5 years ago. They are just killing me. I've paid the interest on the loan through school but even since I've graduated (2 years ago) I still haven't paid down much of the principal. I pay $125/month and only *$20* of that goes towards principal. The rate that I'm paying is 12.15%!
What can I do? Can I consolidate them with my federal (stafford) loans? Will they negotiate for a lower rate?
Unfortunately you cannot consolidate them with your federal loans. It is not permissible by law.
Start paying more per month on private if you can. If necessary pick up a part time job and get them paid down.
I didn't know what I was getting myself into
What can I do? Can I consolidate them with my federal (stafford) loans? Will they negotiate for a lower rate?
Unfortunately you cannot consolidate them with your federal loans. It is not permissible by law.
Start paying more per month on private if you can. If necessary pick up a part time job and get them paid down.
I didn't know what I was getting myself into
Hi Jm
Unfortunately, I'm in the same boat you are with private loans, except mine are $680/month and it's killing my DTI ratio. My lender (AES) does not consolidate private loans. After doing some exhaustive research on this, it seems that the only other way to get something that would resemble something similar to a consolidation would be to get a secured loan to pay off the private education loan. This would basically mean taking out a second mortgage on a home. The only downside to doing that would be that you lose the ability to deduct interest paid on your school loan the year after it's paid off. Since I don't own a home, I'm basically screwed for the next 20 years.
Unfortunately, I'm in the same boat you are with private loans, except mine are $680/month and it's killing my DTI ratio. My lender (AES) does not consolidate private loans. After doing some exhaustive research on this, it seems that the only other way to get something that would resemble something similar to a consolidation would be to get a secured loan to pay off the private education loan. This would basically mean taking out a second mortgage on a home. The only downside to doing that would be that you lose the ability to deduct interest paid on your school loan the year after it's paid off. Since I don't own a home, I'm basically screwed for the next 20 years.
QUOTE(jm1981 @ Feb 1 2007, 08:42 PM)
I took out 2 private loans with Wells Fargo approximately 5 years ago. They are just killing me. I've paid the interest on the loan through school but even since I've graduated (2 years ago) I still haven't paid down much of the principal. I pay $125/month and only *$20* of that goes towards principal. The rate that I'm paying is 12.15%!
What can I do? Can I consolidate them with my federal (stafford) loans? Will they negotiate for a lower rate?
I didn't know what I was getting myself into
What can I do? Can I consolidate them with my federal (stafford) loans? Will they negotiate for a lower rate?
I didn't know what I was getting myself into
Check this page out. http://finaid.org/loans/privateconsolidation.phtml
Ignore the first one about CFS. That private loan consolidation offer is currently suspended due to internal reasons. (unfortunately, it was probably the best one out of all those summaries. )
QUOTE(Matthar924 @ Feb 2 2007, 08:34 AM)
Hi Jm
Unfortunately, I'm in the same boat you are with private loans, except mine are $680/month and it's killing my DTI ratio. My lender (AES) does not consolidate private loans. After doing some exhaustive research on this, it seems that the only other way to get something that would resemble something similar to a consolidation would be to get a secured loan to pay off the private education loan. This would basically mean taking out a second mortgage on a home. The only downside to doing that would be that you lose the ability to deduct interest paid on your school loan the year after it's paid off. Since I don't own a home, I'm basically screwed for the next 20 years.
Unfortunately, I'm in the same boat you are with private loans, except mine are $680/month and it's killing my DTI ratio. My lender (AES) does not consolidate private loans. After doing some exhaustive research on this, it seems that the only other way to get something that would resemble something similar to a consolidation would be to get a secured loan to pay off the private education loan. This would basically mean taking out a second mortgage on a home. The only downside to doing that would be that you lose the ability to deduct interest paid on your school loan the year after it's paid off. Since I don't own a home, I'm basically screwed for the next 20 years.
Yeah, I'm not a homeowner either so unfortunately I cannot go that route.
I will check out the link that ignorance provided. I have to be able to find something better than 12%.
QUOTE(jm1981 @ Feb 2 2007, 12:51 PM)
QUOTE(Matthar924 @ Feb 2 2007, 08:34 AM)
Hi Jm
Unfortunately, I'm in the same boat you are with private loans, except mine are $680/month and it's killing my DTI ratio. My lender (AES) does not consolidate private loans. After doing some exhaustive research on this, it seems that the only other way to get something that would resemble something similar to a consolidation would be to get a secured loan to pay off the private education loan. This would basically mean taking out a second mortgage on a home. The only downside to doing that would be that you lose the ability to deduct interest paid on your school loan the year after it's paid off. Since I don't own a home, I'm basically screwed for the next 20 years.
Yeah, I'm not a homeowner either so unfortunately I cannot go that route.
I will check out the link that ignorance provided. I have to be able to find something better than 12%.
Since these loans are credit based, you will have to have good credit and/or a cosigner to get a better rate. From what I have looked at, 12% is about average. Plus you have to keep in mind that most lenders have origination fees which will increase your balance.
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