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marauder307
08-15-2006, 12:27 PM
What I'm really looking for is a trustworthy financial service.

The situation is thus: I took on a student loan while I was a graduate student at ERAU. It was through Bank of America; they, in turn, sold it off to a third-party servicer, ACS.

I graduated December 2001; ended up having to defer the start of payments due to Coast Guard commitments elsewhere (I've mentioned these in other postings). Started repayments in June 2003. (NOTE: it complicates matters that this is a private loan, not a federal one; Stafford, unfortunately, couldn't cover all the expenses necessary to get through ERAU.)

Since then, I've been activated once more with the Guard; at the time, due to uncertainties about how much my Guard pay would cover (vs. my DoD pay), I asked ACS to put me on their graduated payment program---starts off with very small payments, ends up with very big ones. Payments just go to interest in the beginning and end up covering interest + principal at the end...or so goes the explanation from ACS.

This worked great until ACS goofed it up---forgot to raise the payments at the scheduled time and to the correct amount, and the interest rate has doubled over the last three years (4.1% all the way to 8.37% now) so now, I'm losing ground to the tune of about $100/month, even with overpaying slightly ($20-30). At just over 50-thou owed, this is intolerable.

What I'm looking to do is refinance this thing out for 25 years at a FIXED interest rate, so I can actually start making some headway on this thing. This debt has started to become toxic to my credit rating and I need to get some damage control in, FAST. I don't actually plan on taking 25 years to pay it off---as some of my other smaller debts get paid off and closed, I'm going to divert the monies into repayment on this one. But with that time span involved, the payments will be small enough to deal with in the short term.

Can anybody here point me in the right direction?

Bluerauder
08-15-2006, 01:08 PM
Can anybody here point me in the right direction?
I am still carrying several Stafford loans for my kid's college education. Every week I get about 2-3 notices about consolidating the loans and lowering the total payments by up to 40-50%. Rates are fixed; but the catch is that the payoff time is increased to 20 years (maybe even 25 years). Over time -- the payoff will be considerably more for the longer term.

If you are tied into the Stafford network, you should be getting similar offers to consolidate all of your annual loans. This avenue may buy you some temporary headspace -- since it seems that you have a near-term cash flow issue.

I have basically ignored the offers because I want to pay 'em off in the shortest period of time possible -- doubling up payments when possible. No way do I want to stretch this payment plan out only to benefit the lender. I just want 'em done. Fortunately, I have that option.

Such a consolidation plan may buy you some time by slowing down your payments to a more reasonable and doable level. Once you are able -- it's best to catch up on payments in order to pay off earlier if possible. Check to make sure that any option you consider allows you to pay off early and does not come with a PayOff penalty.

BTW -- I am not a financial advisor. Just offering some personal insight based on my experience with student loans.

I believe that there are military associations and organizations that offer education loan and consolidation services through approved lenders (e.g. Military Officer's Association of America (MOAA), the Association of the US Army (AUSA)).

It might also be worthwhile to check into USAA Financial Services. As a servicemember in the USCG, you should qualify in a number of areas.

Good luck in sorting out this situation.

fastblackmerc
08-15-2006, 01:13 PM
Does the USCG have a credit union? Or since you are in the military do other branches have credit unions?

marauder307
08-15-2006, 01:31 PM
To the best of my knowledge, the USCG doesn't have its own credit union...it does, however work with Navy Federal Credit Union.

Stupid me. I forgot, in my initial post, to list the institutions that I've consulted with so far:

Bank of America---got me qualified for a consolidation loan but it was on a variable rate. No go.

Wachovia---no help in Hawaii; I'd have to move back to FL first, and then their rates are up somewhere around 11%. Ouch.

Navy Federal Credit Union---only does federal Stafford loans and only if I'm still in school. My loan's private and I've been graduated for 5 years now.

I can find places on the internet---Google search---but their trustworthiness is questionable unless somebody else can vouch for 'em.

marauder307
08-15-2006, 01:33 PM
I am still carrying several Stafford loans for my kid's college education. Every week I get about 2-3 notices about consolidating the loans and lowering the total payments by up to 40-50%. Rates are fixed; but the catch is that the payoff time is increased to 20 years (maybe even 25 years). Over time -- the payoff will be considerably more for the longer term.

If you are tied into the Stafford network, you should be getting similar offers to consolidate all of your annual loans. This avenue may buy you some temporary headspace -- since it seems that you have a near-term cash flow issue.

I have basically ignored the offers because I want to pay 'em off in the shortest period of time possible -- doubling up payments when possible. No way do I want to stretch this payment plan out only to benefit the lender. I just want 'em done. Fortunately, I have that option.

Such a consolidation plan may buy you some time by slowing down your payments to a more reasonable and doable level. Once you are able -- it's best to catch up on payments in order to pay off earlier if possible. Check to make sure that any option you consider allows you to pay off early and does not come with a PayOff penalty.

BTW -- I am not a financial advisor. Just offering some personal insight based on my experience with student loans.

I believe that there are military associations and organizations that offer education loan and consolidation services through approved lenders (e.g. Military Officer's Association of America (MOAA), the Association of the US Army (AUSA)).

It might also be worthwhile to check into USAA Financial Services. As a servicemember in the USCG, you should qualify in a number of areas.

Good luck in sorting out this situation.

I'll try USAA tomorrow---it's tough doing business from Hawaii due to the time zone differences; by lunchtime here, everybody's already gone home for the day there.

I don't know about the Stafford system. It might only work if I was still in school...that said, I'll check them out as well. :up: