Consolidated Student loans but thinking off paying off the whole loan. Would the consolidator allow it?

Hi i've consolidated my student loans which is around $23,000.00 and today i got the statement from the consolidater giving me the whole amt i need to pay off in 20yr s with their payment schedule. With their payment schedule, i'll be paying off arnd $43,000.00 with interest, principles with a payment of $180.00 every month for the next 20 yrs. When my dad happened to see the statement he said he'll help me out w/ my student loans and if i go w/ the consolidation payment plan i'm paying the extra $20,000.00 which i dont even owe in student payments to them for no reason and that additional $20,000 i'm paying em is just money down the drain. He wants to me call them and tell them i've changed my mind and not decided to proceed w/ the repayment plans and looking for alternative ways to pay off my loans. The problem is i signed the promissory note and everything so now i'm not sure they'll honor my change of plans. I'm in a big dilemma here and not no what to do. Somebody pls help me out.

Consolidated Student loans but thinking off paying off the whole loan. Would the consolidator allow it?
If it's a federal student loan consolidation you're talking about, lenders cannot charge a prepayment penalty - which means you can pay more than the minimum each month, or pay it all off at once. Just like a credit card (or a mortgage or any other type of loan), if you pay the minimum each month you end up paying more interest over the term of the loan. Each little bit extra you pay each month is money you'll never have to pay interest on again.





Lots of students consolidate, because extending the payment term allows them to pay less each month, especially in the first few years out of school when they're not making a lot of money. Once you don't need that cushion any more, it's smart to start paying extra.





Here's an FAQ on federal consolidation:


http://www.salliemae.com/after_graduatio...
Reply:If your dad is willing to give you the money, i am sure you can settle with them for around 23,000. the rest is the interest you will be paying over the years. Unless you have some sort of prepayment penalty ( and I have not heard of that for student loans) you should be able to settle it with them. When I consolidated, they gave me a 20 yr plan also, of course, that is how they get the most money out of you. I called them and changed it to a 5 yr payoff plan. The monthly payment was a bit higher, but not 4 times higher.
Reply:http://loanconsolidation1.blogspot.com has good ideas and help for student loan consolidation and refinancing student loans





http://loanconsolidation1.blogspot.com

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