Beaver

I am sitting here looking through my student loan documents, trying to figure out the terms, small writing etc. When I obtained the loans a couple years ago I never paid attention, thinking I'de just refinance after graduation. Well, my first payment is due in JAN (that was a fast 6 months) and $325/month on a 12 year loan seems kind of high for a $25000 balance. The question IS---am I required to pay every cent of the finance charges even if I repay before the 12 years is up? On a traditional auto loan it would be advantageous to pay more than the required payment to reduce principal, but I've already learned that school loans are different. Stupid Wells Fargo won't relinquish my loans so that I can refinance with another company. WF interest rates suck.

For example, Loan 3 (have 4 total) was originally $7500+854 for in-school accrued interest=$8354. This sheet gives me the amount financed $8354 + finance charge of entire loan $8268 equalling a total repayment of $16623. Am I required to pay the whole 16K? Or is that assuming I pay the entire 180 payments of $92.35? Are there loans like that? Paying $20,000 interest to borrow $25,000 seems like extortion.

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bratwurst

Bend -

I can't speak for your exact situation, but I had multiple loans and refinanced them all into one single loan. Made everything a LOT easier. I got 4.25% back then, not sure what rates are like for that now.

As for your interest questions, I'm not quite sure.

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BillsCarnage

YES. Do this.

Sounds like you've been jacked on the interest rate. I had approx $14k consolidated at @ 4.25% and am paying $120/mo at 10yr. The rates a probably a bit higher now, but you should be able to cut that in half rather easy, i'd think.

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Ryanwb

You got screwed, your interest rate is astronomical

jw7

You shouldn't have to. I would talk with them. Every loan I've ever had did not have a prepayment penalty.

If you buy a house with a 30 year loan and only pay the required payment each month, you can easily spend 3x the loan amount if you don't prepay. Same thing with student loans. I paid mine off early, and there was no problem paying more than the required payment.

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