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Loans (if your an american student w/ knowledge I'd love you ;)

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
I know all loans are different and I already got the number so I can call the people tomorrow about it to get (hopefully) exact answers, but I thought since I was thinking about it now I'd as (and maybe it would help me remember too!) I am just asking for people's experiences with paying back loans.

I have a student loan right now. I know already now that these loans are completly different seeming. So anyways, I have a loan of $5500 for the year. Since it is such a low number, I took the option of paying the interest back biyearly. The loan I have is called the stafford loan. You don't start paying it back until you a) graduate or b) drop below 6 credits a semester (about 2 classes)

With loans in that general description, in personal experience, can you start paying them back before you're suppsed to? I know I won't ever fully pay them back before time so I won't be penalized for that, but I'm (hopefully) getting a job that will pay me 2.50 more an hour than I am making now) even if I paid 20-50 towards the balance when they charge me for the interest?

I asked my dad and he told me that in alot of cases if you start paying the balance then they will disregard what you have and continue to charge you the balance coninutally.

As I said, I am planning to call the financial office tomorrow and getting specifics but I guess before I do, as I'll have to wait a few days for an appt to meet with them, I'm just looking for experiences in loan situations.

Thanks.

I know I'm not good at explaining things so feel free to say... wtf are you on about :p

Comments

  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I don't know
    You don't know
    Don't you feel an ass?
    Oh, why does the brown cow give white milk,
    when she always eats green grass?
    lol
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    What's the interest rate? In the UK our student loans are about the same level as the bank of england base rate (i.e. close to inflation) so if we pay back now or in 10 years time we're paying the same 'real' amount of cash back.

    But if you arranged to pay back a bit now I'm sure they'd agree with you, afterall they're getting money aren't they? They might throw a bit of a hissy fit, but if it comes to the worst just stick the money in a savings account for a couple of years.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    What's the interest rate? In the UK our student loans are about the same level as the bank of england base rate (i.e. close to inflation) so if we pay back now or in 10 years time we're paying the same 'real' amount of cash back.

    The inflation rate and the base rate are not the same at all, there is at least 1% difference between them, probably 2%.

    US loans are considerably more complex because there are various companies, and given your income some loans are completely free of interest.

    my_name; knowing what I know about US loans you need to talk to them, not us, they are stupidly complex and none of us will have enough direct experience to really help you.
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