Get Out of Debt Guy - Steve Rhode

How Can I Eliminate My Sallie Mae Student Loan Faster?

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Question:

Dear Steve,

I went to college beginning in 2004 and graduated in 2006. I applied for a Private Student Loan with Sallie Mae for $34,000. I have been paying on this ever since then without any default. Today 10 years later, I still owe $30,500. The interest I pay each month is $155.06. My minimum payment is $248.62 but I now pay $320.00 to try and get it paid down faster.

Is there anything I can do to get rid of this loan faster?

Kristie

Answer:

Dear Kristie,

Well I hate to state the obvious answer but paying more each month will do the trick. It sounds like you were previously on one of those low payment almost interest only plans. All they do is tread water and not reduce the balance much. But you don’t need me to tell you that.

You could look at refinancing the loan but I would bet the interest rates would be close to what you already have.

The least obvious solution to look at would be if the loan was for a school that was either not a Title IV school when you attended or the loans were used for expenses other than a “qualified education expense.

It’s worth taking a look at.


Big Hug!
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