I have a $17,000 student loan with a fixed interest rate of 10.375%. When I spoke to someone from Sallie Mae, rather briefly and with very little assistance, I was merely told I had to pay the interest first. The estimated 196 month repayment total is $41, 769.15.
First, this is terrifying. Second, it is criminal.
A total necessity, regardless.
Is repaying a student loan like paying my car loan? I make my monthly payment of $210 but I add an additional $100, which goes straight to the principal, shaving a little extra off every time. Am I stuck with a $42, 000 dollar loan to pay off or is that just an estimate if it takes me the full 196 months?
May 3, 2014
Great question and something I figured deserved some in depth analysis. I wrote an article on your exact problem. The article can be found here: https://studentloansherpa.com/student-loan-plan-dealing-10-interest-rate/
Hopefully that helps!
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