Student Loan Thread

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Re: Student Loan Thread

Postby TheHammer24 on Mon Dec 10, 2012 4:53 pm

mac5155 wrote:I changed the title because I have a question - my federal loans were just sold to a different lender. Now they are serviced by Great Lakes Educational Loan Services. WTF?

Every single one of my loans was sold to Great Lakes. This is typical. The terms of your loan are set by the original contract you signed with your first lender. You just have to pay through a different website now.
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Re: Student Loan Forgiveness Act of 2012

Postby Pitt87 on Mon Dec 10, 2012 4:53 pm

mac5155 wrote:Oh yeah I'm jealous of her too. She went to a small state school though. That's like.. one year of my debt. I have almost $75k


Undergrad? Wow... I have about that after my masters, both degrees from Pitt. I worked 40 hours a week and only borrowed for my tuition, but I could imagine that most people borrowed for both tuition and living expenses... is $75k for tuition only?
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Re: Student Loan Forgiveness Act of 2012

Postby mac5155 on Mon Dec 10, 2012 4:53 pm

Pitt87 wrote:
mac5155 wrote:Yep. Sallie mae must have different maximum terms of repayment. I'm sure if I called I could get it changed, but it's ok as thats roughly what we were sending regardless..


Sallie Mae sets terms on each note, not on each account. Each note is eligible for differrent terms based on its date. I think you have it right though; they basically just laddered you on each note with shorter term on the smaller note. Actually could work in your favor, depending on the rates.


It definitely worked in my favor, now im paying interest on it for 6 months instead of 10 years.
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Re: Student Loan Forgiveness Act of 2012

Postby mac5155 on Mon Dec 10, 2012 4:54 pm

Pitt87 wrote:
mac5155 wrote:Oh yeah I'm jealous of her too. She went to a small state school though. That's like.. one year of my debt. I have almost $75k


Undergrad? Wow... I have about that after my masters, both degrees from Pitt. I worked 40 hours a week and only borrowed for my tuition, but I could imagine that most people borrowed for both tuition and living expenses... is $75k for tuition only?


My last check I have $73k, which is tuition for grad and undergrad, but room and board was also in there. I should have commuted to PSU Fayette for my first year as well, but went to Altoona instead.
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Re: Student Loan Thread

Postby mac5155 on Mon Dec 10, 2012 4:56 pm

TheHammer24 wrote:
mac5155 wrote:I changed the title because I have a question - my federal loans were just sold to a different lender. Now they are serviced by Great Lakes Educational Loan Services. WTF?

Every single one of my loans was sold to Great Lakes. This is typical. The terms of your loan are set by the original contract you signed with your first lender. You just have to pay through a different website now.


OK, there were about 6 loans sold, one consolidation loan and 4-5 current loans out for my grad school, can I consolidate these all at the end of grad school again?
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Re: Student Loan Thread

Postby beerman on Mon Dec 10, 2012 4:56 pm

I think I have about 4 payments left, I'll be stoked once that's over with.
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Re: Student Loan Thread

Postby columbia on Mon Dec 10, 2012 4:57 pm

I paid off my undergrad and graduate schools loans this year.

Whoot!
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Re: Student Loan Thread

Postby mac5155 on Mon Dec 10, 2012 4:57 pm

Once our wedding is paid for (should be by the time the date rolls around at our saving level) the payments are getting bumped up to $1k a month on mine and $400 a month on hers (which are currently at $250). Im hoping by 2018 to have it combined under $10k, then start house shopping.
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Re: Student Loan Thread

Postby TheHammer24 on Mon Dec 10, 2012 5:03 pm

mac5155 wrote:
TheHammer24 wrote:
mac5155 wrote:I changed the title because I have a question - my federal loans were just sold to a different lender. Now they are serviced by Great Lakes Educational Loan Services. WTF?

Every single one of my loans was sold to Great Lakes. This is typical. The terms of your loan are set by the original contract you signed with your first lender. You just have to pay through a different website now.


OK, there were about 6 loans sold, one consolidation loan and 4-5 current loans out for my grad school, can I consolidate these all at the end of grad school again?

I'm not sure about consolidation rules. My understanding is you can consolidate "once." I'm not sure if that means once ever or once after you get more debt or if it m eans you can consolidate into an already-consolidated loan. I looked at consolidation, but it seems like there is neither upside or downside to it.
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Re: Student Loan Thread

Postby mac5155 on Mon Dec 10, 2012 5:04 pm

It basically averages out your interest rate, you end up paying almost the same in the end, unless you have a ton of debt, then it allows you to stretch the term a bit.
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Re: Student Loan Thread

Postby TheHammer24 on Mon Dec 10, 2012 5:06 pm

mac5155 wrote:It basically averages out your interest rate, you end up paying almost the same in the end, unless you have a ton of debt, then it allows you to stretch the term a bit.

Sure. But if you have varying interest rates and you want to pay off faster than 10 years, wouldn't it be best to pay minimum on low-interest loans and pay all the extra on the high-interest loan?
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Re: Student Loan Thread

Postby mac5155 on Mon Dec 10, 2012 5:08 pm

without doing any calculations i'd think a 9% loan and a 6% loan at 10k each would have a similar total payment to a 20k loan at 7.5%
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Re: Student Loan Thread

Postby Pitt87 on Mon Dec 10, 2012 10:18 pm

mac5155 wrote:without doing any calculations i'd think a 9% loan and a 6% loan at 10k each would have a similar total payment to a 20k loan at 7.5%


On the weighted average basis, yes. On the total debt service basis, you'd need the term since your total debt wouldn't decrease as quickly.
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Re: Student Loan Thread

Postby TheHammer24 on Mon Dec 10, 2012 11:14 pm

mac5155 wrote:without doing any calculations i'd think a 9% loan and a 6% loan at 10k each would have a similar total payment to a 20k loan at 7.5%

Of course. It would be identical. Imagine you you have two $10,000 loans---one at 5% one at 10%. The loan is due in 10 years with 120 equal payments. You'd pay the same through 120 equal payments on a 7.5%.

You could improve your situation. Say you wanted to pay the total debt off in 5 years. If you paid 60 equal payments on both loans, again your total interest would be the same as if you paid 60 payments on a 7.5%. Loan 1 (@ 5%) would be billed at payments like $120 and Loan 2 (@ 10%) would be billed at $150. (These numbers are totally made up). You could pay the debt off faster by doubling what is due---paying $240 on the 5% loan and $300 on the 10% loan. But you'd be much better served to pay $120 (the minimum) on the 5% loan and allocate the extra $120 to the 10% loan and pay $420 until it is gone. Once you pay off the 10% loan, return to the 5% loan and pay the $540 payments on that loan.

In both situations you pay $540 a month. But without consolidation you pay $120/$420 and pay off the loans quicker. With consolidation you make one continuous $540 payment, but you can't take advantage of allocating your payments.

Hope that makes sense.
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