I know, I know, I know private student loans are bad. Unfortunately I already have one and will be paying for it for a while (and thinking about how terrible a decision it was every time I send a payment). I'm currently with Student Loan Corp (aka Citibank). My problem with them is they are very inconsistent with the way they apply the payments. I pay on or very close to the same day ever month. One month $20 may go to principal, the next only $5. When I schedule my payment it is a minimum of 5 days before it is drafted and applied to my account (and therefore more going toward interest). Has anyone used any companies they would recommend? I wish I had left it with Sallie Mae but wanted a fixed rate so I moved it.
Post by thecropchick on Jan 23, 2011 19:40:44 GMT -5
Stay away from the mac's. (sallie that is). They are a PIA to deal with. Contact your local bank or credit union.
No bank will take over another student loan account. 99.9% of the times, the first several payments (and I mean years) go to interest! Sorry, but that is how banks make their money. Pay more then the minimum! If you can double your payment, then do it!
I have found that the earlier in the month that I pay our student loans, the more goes to principal and the less to interest. When I questioned why, I was informed that it had to do with average daily balance, and when you pay earlier, it results in less principal, therefore, less interest. One thing I do like about Citibank is that they will accommodate a change in payment dates if you request it. We'll be paying them back for years too. If you choose to pay earlier in the billing cycle, wait until after the notice posts (otherwise, it's viewed as an extra payment to principal, not the upcoming payment)