Consolidating Loans, Confused Options

[ttugurl]

Ok so I finally consolidated. But I'm confused and I cant find answers anywhere.

It says my principal is 41k and my interest is 47k and total payoff is about 89k...

it says i pay 240something for the first 2 years and and in 2009 like 280 something until 2031.

89K confused the heck outta me because the interest rate im at is 6 point something.

So my online friend was saying if I double up my payments and not pay the minimum... The 89k lowers? Please explain. Thanks!!!! Anyone know of a helpful site.

Are the consolidating companies as bad as the Lenders then????

[impala454]

it sounds like for some reason your interest was compounding while you were in school.. i dunno why it would have been. and 6%... that sounds astronomical for student loans... who did you consolidate with?

[pebkac]

it sounds like for some reason your interest was compounding while you were in school.. i dunno why it would have been. and 6%... that sounds astronomical for student loans... who did you consolidate with?

Well, there are subsidized and unsubsidized student loans. Unsubsidized loans do accrue interest while enrolled.

[impala454]

Well, there are subsidized and unsubsidized student loans. Unsubsidized loans do accrue interest while enrolled.

well this is true but to the tune of 42k on 47k over 1-4 yrs??

my total amount of my loans was about 36k, with about 8k i couldn't consolidate bc they were private loans. so i had 28k consolidated with panhandle plains, and on a 20 yr note i started off paying $86/mo, and every 2 years it goes up like $8 (i think, haven't looked in a while). and the rate is something like 2.75%

6.x% on student loans is insane... i think i got a better deal than that on my damn truck

[pebkac]

well this is true but to the tune of 42k on 47k over 1-4 yrs??

my total amount of my loans was about 36k, with about 8k i couldn't consolidate bc they were private loans. so i had 28k consolidated with panhandle plains, and on a 20 yr note i started off paying $86/mo, and every 2 years it goes up like $8 (i think, haven't looked in a while). and the rate is something like 2.75%

6.x% on student loans is insane... i think i got a better deal than that on my damn truck

After re-reading her post, it makes sense. I think she's saying that by the time she's done paying it off, the interest paid will be 42k.

And to answer your question, yes, if you make higher payments on the loan than the minimum amount due, it will lower the amount of interest you have to pay.

[impala454]

After re-reading her post, it makes sense. I think she's saying that by the time she's done paying it off, the interest paid will be 42k.

but what she said as a payoff amount was not right. your payoff amount is what you'd pay if you wanted to pay off the entire loan. she made it sound like they'd stack all the interest on her if she did want to pay it off, and that's horribly wrong if it's true. i guess it's more likely she mis-read. your payoff amount should be pretty close to the principle.