I find it very disturbing that a federal student loan with a similar interest rate and payment as a private vehicle loan still takes twice as long (if not more) to pay off than said vehicle.
I'm going on 6 years of paying essentially 2 car payments on 2 separate federal student loans. Yet, I've only made a few thousand dollar dent.
One loan was originally for $23k. I have paid $300+ and still owe $20k. That's right - I've PAID $21k, but you wouldn't know it looking at my balance.
The other was for $31k. I have also paid $300+ and still owe $24k. I've also paid about $21k here as well.
In that time, I've paid off an $17k vehicle with a payment of $350 in 4 years.
The interest rate on the vehicle was 4.9%. The interest on my student loans are from 3.75% to 4.98%.
How does this make any sense? I'm so frustrated...
2 years ago
2 comments:
That really really sucks! I don't understand what's up with that interest. That doesn't make sense!
I am sure you have thought about this already but could you take a loan to pay those loans, one with lower interest??
I've run the numbers... it wouldn't be worth it now since I've put so much into them. I'm FINALLY paying on the principle instead of just interest, which is how the loans were apparently setup. You pay all of the interest first, then you pay the principle. So, paying ahead doesn't save you anything. The more and more research I do on my loans, the more irritated and frustrated I become.
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