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Help paying back complex Loan
November 24, 2015
11:20 am
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November 24, 2015
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Hello,

So I have a bit of a situation with Student loans that I am trying to find the best way to go about so I guess I should give the details of what I have first and go from there:

All loans through Navient
I have (5) loans that have been grouped by the Department Of Education as follows
6K (Sub) 6%
6K (Sub) 5.6%
7k (Unsub) 6.8%
3k (unsub) 6.8%
10k (unsub) 6.8%

These do not have a payment requirement till June of 2017

Then I have (4) more loans that have not been grouped as of yet and can take
Individual payments but as well are not due
5k (Sub) 3.86%
7k (Unsub) 3.86%
5k (sub) 4.66%
7k (unsub) 4.66%

This totals out about 59k
So as the first set that include that 10k loan (which I could easily take out in 1 payment, does not allow for me to attack it being grouped like that! I am currently still in school but only half time, I am no longer taking any sort of financial aid and would like to get these paid off, while I have 11k set aside to use in paying them off, I have a good income and can put $400-$600 down monthly to get this paid off but not sure how to go about it.

– Should I consolidate this loan? Will it help with % Rates?
– Why am I not qualified for Automatic Debit?
– I do not feel comfortable giving them a Checking/Acct Routing #, that is asking for trouble, I would prefer credit card or Cashier’s check mailed in, can I do this and make specific payments?
– How would you recommend nipping this debt, and getting it out of the way the most efficiently?

Thanks

November 24, 2015
11:29 pm
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Indiana
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Forum Posts: 334
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May 3, 2014
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For your consolidation question, are you asking about private consolidation or consolidation of your federal loans? These two processes are very different, so I’ll hold off on answering that one until I get a better idea of what you have in mind.

As for your question about Automatic Debit, I’d definitely reach out to your lender to ask. That could be a loan servicer specific issue. That being said, I’d wager a guess it is because you are still in school and not required to make any payments. During this time they would prefer you didn’t pay anything at all and let the balance generate some extra interest.

You will have a hard time making payments via credit card (more on that here: https://studentloansherpa.com/pay-student-loans-credit-card/ ). If you want to protect yourself, your best option may be to have your bank send checks using bill pay. The checks your bank sends may still have checking account/routing #’s, but if you never give the authority to electronically withdraw from your account, you will dramatically reduce the odds of an issue.

I typically suggest college students pay the interest that each loan accumulates each month. That way they have an understanding about how their debt balance is growing and what their future obligations will be. It sounds like you don’t need any lessons about how the debt works. I’d suggest picking one loan, definitely an unsubsidized one, and trying to get it paid off entirely. From there, move on to the next one. I’d personally go with the highest interest rate loan, but some people like to pay off the one with the lowest balance to get an easy win.

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