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Student loans

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  1. Apr 30, 2007 #1
    So for the first time I took a look at the details of my monthly student loan payment info and found out that of the roughly $320 I pay every month for my student loans $200 of that money goes to paying off the interest! How exactly is this legal? Why can't I pay off all the principal first, then all the interest? I looked at the estimate, and at the rate I am paying off my student loans I won't be done paying them off until about 2032! LOL my one consolidated loan for $35K has a monthly payment of about $180, $130 of which goes to paying off the interest only. Only $50 actually goes to paying the principal. I think I will be dead before I pay off that $35K loan at $50 per month.


    HS students, this just goes to show you that you should never overlook your state college, which is probably the best bargain, for some over priced private school that you will need to borrow a ridiculous amount to go to.
     
  2. jcsd
  3. Apr 30, 2007 #2

    cronxeh

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    Gold Member

    You think you've got it bad. I got 50 grand in loans and a solid $500 a month to pay. HS students: DONT BE STUPID! MIT, Harvard, whatever the crap are not worth your money. Go to a state school or city college (4 year Bachelor preferrably - stay away from Community College as they are a waste of time) or to whatever school you get a scholarship/grants to. Dont be fooled by the hype. The biggest lesson you'll learn from private schools is that self study is the only true lesson from all of this, and that people are inherintly lazy and want to sit back and not work, and by loaning you money with a fine print they'll be able to accomplish just that.
     
  4. Apr 30, 2007 #3

    Astronuc

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    Staff: Mentor

    I've co-signed a couple of loans for students (not my kids), who needed help. The interest rates are 7-8.5% and the interest begins to accumulate while one is still in school.

    Read the agreement/contract before one signs. As with any contract, one should know exactly to what one is agreeing.

    One should get a loan that allows payment of principal beyond the monthly payment, without penalty, in addition to interest. I did this with the mortgage.
     
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