Student load payment advice

[munchiaz]

So, its around that time in my life where i have to start paying back my student loans. I am actually still in school at this time, but i'm only taking one class so i am no longer considered full time. Yesterday i received a letter in the mail from one of my private loan holders by the name of ACS. After interest and fees i owe over $35k. It's definitely a lot of money to me, and they want the monthly payments to be $340 a month, which is something i don't think i can manage

I spent some time this morning doing some research on ACS, and they seem like a very dirty and shady company, so it makes me very hesitant to start paying them using my bank account. I have read stories where people sign up for payment plans with ACS, only to get hit with delinquent credit reports from ACS, and then claim to not be aware of any payment plan setup.

So i have been thinking of either creating a dummy bank account that i only use to pay this bill. I was also thinking of consolidating the loans through a bank. It just seems like a safer option. This is my first time having to deal with this stuff, so if you guys have any advice at all, it is greatly appreciated 

[MotherGunner]

Saw the subject line and laughed.  Sorry for not adding anything useful.

[TheClash603]

obviously you should check and see if your rate is correctly in line with the market.  If you can even get 0.5% better somewhere, that will be worth your time and effort, as interest payments over a 15 year period (standard for student loans) are no joke.

If you cant pay the recommended amount, make sure you pay the most you can.  deferring any payment means compounding interest, which is not something you want to start adding up.

[Jibbajaba]

One of my student loans was through ACS, and I never had a problem with them.  But I also never had a late payment, and paid that loan off with a lump sum as soon as I had the money.  My advice is to pay them on time every month and you shouldn't have anything to worry about.  If you don't think you can manage the monthly payment, do something about it now instead of letting your account get delinquent.

[sirhcman]

I have a student loan through ACS, never had a problem but I pay my bills on time.

[munchiaz]

I def plan on paying my bill on time. I don't have any issues with that. I just don't think i can swing $340 right now. I'm about to start a new job as a data engineer, so hopefully soon, i can pay that much.

[sirhcman]

I def plan on paying my bill on time. I don't have any issues with that. I just don't think i can swing $340 right now. I'm about to start a new job as a data engineer, so hopefully soon, i can pay that much.

Usually the loan companies will work with you if you can't pay your full amount, best thing to do is talk to them and explain the situation.

[Arkhan]

I pay extra every paycheck. 

My advice is to write down all your bills for the month and then write down your paychecks for the month and see what you have to work with.


and usually, when you're about to buy something stupid, stop and pay it to your loan instead.

[TheClash603]

I pay extra every paycheck. 

My advice is to write down all your bills for the month and then write down your paychecks for the month and see what you have to work with.


and usually, when you're about to buy something stupid, stop and pay it to your loan instead.

Paying extra is not necessarily a bad idea, but not always the best idea too.

My student loans are at 2.25%.  I have increased my contribution to my retirement plan, which increased in value at approximately 11.0% last year.  Low interest is nearly free money, you can gain elsewhere on the lender's dime.  If I paid off my student loans instead, I would be less well off on a debt to worth basis.

Also, pay loans in the order of highest interest to lowest interest.  Pretty common sense stuff, but if you have $1,000 on a credit card, pay that off before increasing your student loan payment.

[munchiaz]

according to this letter my interest rate is 6.80%

[Arkhan]

Paying extra is not necessarily a bad idea, but not always the best idea too.

My student loans are at 2.25%.  I have increased my contribution to my retirement plan, which increased in value at approximately 11.0% last year.  Low interest is nearly free money, you can gain elsewhere on the lender's dime.  If I paid off my student loans instead, I would be less well off on a debt to worth basis.

Also, pay loans in the order of highest interest to lowest interest.  Pretty common sense stuff, but if you have $1,000 on a credit card, pay that off before increasing your student loan payment.

Agreed.   If your interest rate is some really low amount, there's no point in paying more than you have to, unless you're just really in a hurry to get them out of there ASAP before you spend spare money on toys and mcdonalds.

[turboswimbz]

according to this letter my interest rate is 6.80%

I feel your pain.  6% is the going rate on these, as I am in the same boat as you, except I graduate in a few months.

Here is what I have learned / gotten advice on so far
     - The best thing to do is pay as much as you can and don't defer or stop paying. (in other words advoid paying too much intrest, or not paying enough to start paying off the prinicpal)
     - Always save everything you get from them and get it in writing, and setting up an account for this isn't a bad ideas. < these will protect you should you need to go to court down the road, ect. 
    -  And oh we are all screwed - especially if in 20 - 30 years all these loans are defualted on. SInce you know after 20 + years the companies can stop collecting payments and you'll get charged income taxes on the remaing balance.

[Jibbajaba]

Actually, the best thing to do is defer, but then keep making the payments.  You aren't charged interest while your are in deferment, meaning that your entire payment goes towards the principal.

[turboswimbz]

Actually, the best thing to do is defer, but then keep making the payments.  You aren't charged interest while your are in deferment, meaning that your entire payment goes towards the principal.

What your talking about is IN SCHOOL/SPECIAL deferment on a SUBSIDED loan.  IN these cases you are still charged interest but either the government or another organization pays it for you.  All other loans will charge you interest even in deferment. 

[munchiaz]

Anyone have any info on non profit school loan consolidators?