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Refinancing Student Loans

By Terry Savage on April 01, 2019 | College Savings / Student Loans

Hello Terry,

I have three private student loans through Sallie Mae that total $62,000 which makes my total around $900 a month because each loan has its own payment. I can’t refinance or combine my loans on Sallie Mae and I was unapproved for refinancing through their website. I have tried every financial company out there including SoFi, Credible, Earnest, Lightstream, ect. to refinance my loans. Each of those sites either deny me or tell me that my monthly payment will be over 500 and I still can’t afford that. I tried with a co-signer but it really didn’t make a difference and I don’t have any other family/friends that I can use. I would love to start paying my loans but I feel like the only option right now is to claim forbearance because each option is just too much for me to pay. I also have financial aid loans that total $10,000 which I have brought down to about $66 a month to pay those. I am supposed to start paying in two months to my private student loans.

Please let me know what I can do to make my monthly payments the lowest possible.\

Terry Says

Well, you are in a tough spot — and you’re not alone.  You borrowed a lot of money to pay for college, presumably to get a better job. Now your salary won’t allow you to live and also pay your loans.  You’ve tried all the places and techniques I would ordinarily recommend.  A Sallie Mae loan is not a federal loan, so it does not qualify for “forbearance”.  It does qualify for a deferment if you’re still in school.  Or you can make “graduated” payments based on your income.  Have you contacted them to review all your options? Read this section of their website for all the possibilities.

The only way to really get out from under this burden is to get TWO jobs — work day and night — because the longer you wait, the bigger the burden will be as interest adds up.

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