View Full Version : Private Student Loan Debt HELP


TC101
Ok, Im in a bit of a pickle here... I just graduated last May. My total outstanding debt is $91,000 in private loans.

They are in 3 loans basically. $31k each at 9.5%, 9.75% and 10% respectively.

Right now, my current monthly payment is $700 (interest only for 2 years). The real payment is $1000/month but I cannot pay that until I get a raise next year or so. I currently make around 42,000/year. Should I look into borrowing money from someplace else at a normal interest rate (if possible?). Also, is consolidation a bad idea since the rates are variable and they seem to be 10.5%+ when 2 of my loans are in the 9s. I know I need to win the lottery and Im working on that... :-)

My only other thought was to ask my rich uncle on my cousins side of the family to borrow 50-60k and Id pay him 4% interest or something which Im sure he would do since he is quite wealthy. Not to mention the interest Id pay him would be tax free. What does everyone think my best option is. I hate having this debt, it really sucks. Hopefully when Im in my 30s I will start making some real cash and can start paying hefty chunks to them.

Puck
If your loans are guaranteed by the government, you are eligible for consolidation. The consolidate rate will never exceed 8.25%, so you'd be saving some money right off the bat. Here is the website to the Fed's consolidation website. Click through the FAQ in the column at left.

http://loanconsolidation.ed.gov/borrower/borrower.shtml

TC101
How do I find out if my private loans are backed by the government? If I could get them all at 8.25% that would be great.