Heyo. For graduate school, I took out federal loans but also separately did private loans through Sallie Mae. I hate them. With a passion reserved for the no-bathers on the subway.

Anyway, is there any way I can refinance the private education loans without using a HELOC {I don't own property}? The current interest rate on them went up to 9.25%. I think the jerks are using the LIBOR numbers. I have good credit, but it's still young enough for me not to qualify for such a large personal line of credit from a bank, plus I don't own property that could serve as collateral. Are there any other options?

Key Bank has a Private Loan Consolidation program but right now it's also high at 9.5% because they're using LIBOR. Check it out: [www.key.com]

Any help is much appreciated.

what don't you like?

The extremely high interest rate and that I can't get a handle on their interest charges. Even if I pay early, as in a week after I get the bill, 80% of the amount paid still goes to interest, instead of a little bit more of it going to principal. I'm really tired of dealing with them.

Also, I spoke to a customer service rep about the rate and she said that it can increase to whatever limit the state in which it is written dictates. Guess what, they write all their loans out of Delaware, along with all the credit card companies. There is NO limit to interest charges in the state of Delaware. This is why consumers are seeing 30.9% default penalty rates lately on credit cards when it used to be 23 or 24%. I told the nice lady that Sallie Mae can charge me 16% interest if they wanted and she grudgingly agreed.

That's usury, except in Delaware of course. Anyway, I want to be rid of them but don't know how just yet.

damn! 9.25% on an education loan? I'm not sure I'm paying more than 4%. For smaller amounts, you might be able to transfer it to a credit card with a good rate. For larger amounts, shop around. I'm not sure what happened there but you should be able to do better than that.

>>Even if I pay early, as in a week after I get the bill, 80% of the amount paid still goes to interest, instead of a little bit more of it going to principal.

Yeah, thats how large loans work.

>>Anyway, I want to be rid of them but don't know how just yet.

You might have to take out another student loan through someone that isn't going to screw you like that and just transfer the balance to the new loan - not that they'll let you do that directly.

These are private loans, not federal, so they work completely differently {and unfortunately}. Private loans are pretty much the same thing as consumer debt and I need to address it kind of the same way in terms of consolidation.

>>damn! 9.25% on an education loan? I'm not sure I'm paying more than 4%.

My federal loans are only 3.725% that's why I'm not worried about those at all.


>>You might have to take out another student loan through someone that isn't going to screw you like that and just transfer the balance to the new loan - not that they'll let you do that directly.

Good idea. I have another private loan that isn't as high/sleazy. I may try asking them if I can move the other balance over for a fixed rate. That feels almost like a credit card offer...

Anyone with a large 0% AMEX limit s/he is willing to let me borrow for a few years?

If 9.25% was too much, and paying the interest as a high percentage of each payment was part of the terms, why did you borrow from them in the first place?

Please don't take this personally, but if you can't afford to meet the terms of a loan, DON'T BORROW THE MONEY in the first place...

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Paul F.
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A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
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Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.
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Eureka, CA

It wasn't 9.25% when it began, it keeps increasing. I originally borrowed when rates were lower.



Paul F. Wrote:
-------------------------------------------------------
> If 9.25% was too much, and paying the interest as
> a high percentage of each payment was part of the
> terms, why did you borrow from them in the first
> place?
>



> Please don't take this personally, but if you
> can't afford to meet the terms of a loan, DON'T
> BORROW THE MONEY in the first place...
>

Yes, I will take it personally. You're not talking/typing to a person who had parents helping her pay for her education or living expenses. And education was the only way out of a dead-end situation/town/state. I AM accepting responsibility for the loans by repaying, am I not?

And the AMEX question was a joke so don't say that I'm asking strangers for monetary help.

Get a job in a Title 1 School until they waive it all.

It won't be waived.