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Student Loan Saga Continues

March 26th, 2018 at 05:54 pm

So I called Great Lakes, and apparently no matter what amount you pay extra, the amount can only be applied to interest. This is absolutely ridiculous, no wonder people take years to pay this crap off.

I'm going to write my Congressman/woman, something had to be done.

So, I've decided not to alter the DR plan after hearing this. I'll go ahead and pay off Target this month.

I received a $10k more on the house, thank goodness. That means more money to pay down debt. 🤦🏾‍♀️🙄. A nice chunk of change going all towards debt, I can just kick myself

4 Responses to “Student Loan Saga Continues”

  1. creditcardfree Says:

    Well at what point is any money applied to principal? Only if your payment is greater than the interest due? Are you eligible to consolidate your loan to a lower rate or better terms? Of course, I don't know how that works with income repayment.

  2. Amber Says:

    Yes, once the interest is paid then the extra payments will be applied to the principal, this is a disgrace. I'm definitely going to research consolidating with a better rate.

  3. rob62521 Says:

    What a rip off. I'm sorry, Amber!

  4. CreditRules Says:

    I know this feels unfair, but I think the idea of income-based repayment is that they're letting you avoid the interest you should be paying now because you truly can't afford to pay another penny. So if you can afford more, you should have to put it towards that interest like everyone else making student loans has to. Then, once you've paid all the standard interest, you could pay towards principal.

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