9/4 i heard something i think is false, but i wonder if someone here can
confirm or deny it. someone claimed that if you call the agency that
services your student loan and offer to pay off the whole thing in
one shot they'll make a deal with you to decrease the amount by more
than just the interest. has anyone seen this happen? i'm guessing
whoever thought they were getting a discount just failed to understand
the concept of interest, since this seems like very very odd behavior
for a loan agency. what's the deal here? I'm about to pay off my loans
and i want to get the best deal possible.
\_ I've a possible explanation. Perhaps they realize that they
can loan your returned money out to someone else for more than
enough to make up for your discount. Perhaps some hapless fool
with an 18% credit card debt. And perhaps they have already
received the federal subsidy for giving you your loan. Therefore,
it's an unadulterated win for them to have your money back. --PM
\_ ok, i hadn't thought of it that way. i'll call them up and
try to bargain. thanks.
\_ If you have one of those 5% loans, they are loaning you money
way below market rates, so they would want to have it back.
If it is a 8 or 10% loan you are probably sol.
\_ I just looked into this. If you have a Direct Loan
(800.848.0979) forget it, they said because it's federal money
they don't do "settlement offers". Most likely your friend had
a loan with a private company or he defaulted. The only thing
you can do with a Direct Loan is if you pay it off within the
first 103 days they will waive the interest and origination fees. |