Science Forums 2

[CraigD]

Originally Posted by Nootropic

So I just got the statement for my student loan, which was rather, unsatisfactory, you might say. Apparently you had to read the "fine fine" print to notice they'd ramp it up to a 14.5 interest rate. So now I'm looking quickly for another loan with a MUCH less expensive interest rate. Anyone know any good ones?

Out of curiosity, from what institution did you get your loan?

As one of the more financially successful of my extended classmate family, I’ve had a good bit of experience with “rehabilitating” delinquent student loans. Every one of them has been a Perkins loan. Compared to a Perkins loan’s 5% APR over 10 years, starting 9 months after graduation or dropout, the rate you describe, and, I suspect, the terms, are terrible.

The Department of Education, and, with occasional exception, their contractors, in my experience bend over backwards to help their loan holders repay their loans, waiving penalties, deferring payments, completely forgiving the loan if you’ll teach Math or special-ed for a few years, etc. The main drawback with the Perkins is that it’s small (for undergrads, max $4,000/year, $20,000 total) and limited to poor students.

Though it’s likely not helpful with your current problems, Nootropic, I’d suggest you avoid your 14.5% student loan lender in the future. If you don’t qualify for a low-income loan, either due to your own or you family’s income, hopefully you or they can repay your loan(s) as quickly as possible via a variety of financial instruments.