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No. of Recommendations: 6
I don't know who her loans are with, but she should look into income contingent repayment plans, or plans that stretch the payments out over thirty years...

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The thought of that sort of frazzles me - I just want this thing out of our lives as quickly a spossible, but it's also something to look into, thanks.

Ahote


W505a is the expert on repaying student loans, not me, but I believe that if you pay on it for 25 or 30? years, say on an income contingent repayment plan, they forgive whatever balance is left at that point.

But I'm not crazy about that, either. I was just thinking that if you lowered the minimum payment, maybe it would help your cash flow, but since what you want is a lower interest rate, I don't think there's much that you can do with the loan itself. Selling a car and paying off a chunk of it is a good idea, and pay as much as you can to it every month, to get rid of it as quickly as possible. And the new loan taken out to cover the old loan thing is good, too.

Another way to get a lower interest rate on part of it is if you get credit card offers in the mail for balance transfers, sometimes they'll have a balance transfer at a low rate for the life of the balance. These can be tricky, since if you miss a payment your rate can skyrocket to something in the high twenties, but if you are confident that you can handle it, you can transfer a big chunk of the loan to one of those offers at 1.99% APR or something like that for the life of the balance.

There are some perils besides missing a payment, or paying late. Your credit score can take a hit, if for a month both your loan company and your CC company report the balance (it suddenly looks like you have more debt). You probably don't have one CC with a high enough credit rating to transfer all of it, but even transferring some of it would help, though it would add to what you have to pay out every month. And once you use a credit card for a balance tranfer, you want to make sure that you don't charge anything else to it. Credit cards allocate your payment to the lowest APR balance first.

Have you visited the credit card board, or the budgeting board, or the Living Below Your Means board? You can get good ideas on how to cut your budget so you and your wife are a lean, mean, inexpensive machine, and pay more towards the loans until they're gone gone gone. Good luck!


--Booa
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