Student Loan question????
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.
You can't climb the ladder of success with your hands in your pockets.
Last edited by Beaver; December 10th, 2005 at 09:56 PM.