Student Loans

Date: Mon, 09/25/2006 - 13:53

Submitted by anonymous
on Mon, 09/25/2006 - 13:53

Posts: 202330 Credits: [Donate]

Total Replies: 2

Student Loans

My wife accumulated around $12K in student loans while in college. She has not graduated and has not received any coupon books or notices of debt due. Today, we recieved a letter in the mail stating her account has been sent to collections. The principal is $9445 and the interest is $710. We would like to pay this off as quickly as possible with $125 per week in payments. My question is this: How much should we tell the agency rep without obligating ourselves to this amount? I would like to have the amount reduced to pricipal plus half interest and if nothing bad happens financially in the future, plan on paying this off in around 2 years. Would it be to our benefit to inform the agency of our desire to pay this much per week or would it just lock us in to this amount? Your advice is greatly appreciated.

This is what I think. I will propose that much amount only that

This is what I think. I will propose that much amount only that can be afforded in future in realistic terms. Don't get to the temptation of making large deals that you can't afford sometime in the future. You will not only be hurting your plan by being in defaults and lose money already sent, but this option of working with the company might also get closed.

lrhall41

Submitted by Christina on Mon, 09/25/2006 - 14:03

( Posts: 438 | Credits: )

here are some payment plans available to you all

Federal Student Loan Consolidation Repayment Plans

EasyPay Equal
With this option, you will pay an equal (or standard) amount each month throughout your repayment. All payments include both interest and principal. This plan has the highest initial monthly payment but the lowest cost in total interest paid.

Graduated Repayment
Graduated repayment requires initially lower monthly payments that increase later in the repayment period. Early payments cover interest only. As principal is included in the amount paid, the monthly payment amount increases. The total interest cost is higher over the length of the repayment period with this plan than with the EasyPay Equal repayment plan.

Access Group offers two graduated repayment plans:

EasyPay 2 Step
Begins with interest-only payments for the first two years, followed by payments of interest and principal for the balance of the loan term.

EasyPay 3 Step
Begins with interest-only payments for the first two years, followed by three years of payments of interest and partial principal, then concludes with payments of interest and principal for the balance of the loan term.

Note: Access Group's Student Loan Repayment Calculator shows you the effects of choosing standard repayment versus graduated repayment.

Income-Sensitive Repayment
Monthly payments are based on your expected total monthly gross income and federal loan debt. Payments are adjusted annually. The monthly installment can be no less than the amount of accrued interest and no more than three times greater than any other payment. You must request this plan from your lender and provide any requested income documentation, which allows the lender to determine a reasonable monthly payment amount.

Extended Repayment Plan (available only to those who first borrowed Federal Family Education Loan Program loans on or after 10/7/98 and whose total federal student loan debt exceeds $30,000).
This option allows borrowers to repay their loans over a maximum period of 25 years, with either standard or graduated repayment. The monthly payment is lower but the overall cost is higher than with the equal or graduated repayment options.

Please note: You can always choose to pay more than the minimum payment due. This additional amount goes directly against the principal of your loan, and may lower the overall cost of your loan.

lrhall41

Submitted by PDLFREE on Sun, 10/22/2006 - 12:20

( Posts: 1245 | Credits: )