untateve Posted February 16, 2010 Share Posted February 16, 2010 Here's the story-- I had received my student loan interest form from from Sallie Mae. So, I got to wondering what my payoff amount was on my student loans. I register on their site, pull up my account info and see that I only owe $2316. I have auto-withdrawal so I'm figuring I have about 7 more payments and my loan is all done. Woohoo! I tool around the site and I come across my repayment schedule. The repayment schedule showed that I'd be done paying off my loan in March 2014 and the total amount repaid would be $17,807.45!!! I'm thinking I must be reading the website wrong and therefore, I give Sallie Mae a call. I explain what I understand my loan payoff amount to me and the nice customer rep lady confirms this. I then ask about my loan repayment schedule as I can't believe that I'm understanding the website. The nice customer rep lady confirms that if I just keep doing auto-withdrawal, my payments will end in 2014 and I'll have paid $17,807.45. I start laughing as does nice customer rep lady. I'm somewhat incredulous and I ask her if I pay $2316 right now, I'm essentially saving $15,000? "Do I understand this correctly?" And nice customer rep lady confirms that I understand this correctly. Is it me or does $15,000 interest on the remaining $2316 of the loan seem a bit fn high?!? (I didn't ask nice customer rep lady that question as her laughing with me told me all I needed to know.) I paid off my loan right then and there, saving myself $15,000. Quote Link to comment Share on other sites More sharing options...
vt700guy Posted February 16, 2010 Share Posted February 16, 2010 Wow, what was your interest rate? Quote Link to comment Share on other sites More sharing options...
geeteebee Posted February 16, 2010 Share Posted February 16, 2010 Why do you hate America? Quote Link to comment Share on other sites More sharing options...
Jackass Posted February 16, 2010 Share Posted February 16, 2010 "The most powerful force in the universe is compound interest" - Einstein (it's questioned whether he actually said this, but you get the idea) Quote Link to comment Share on other sites More sharing options...
untateve Posted February 16, 2010 Author Share Posted February 16, 2010 (edited) Wow, what was your interest rate? 7.75% I think when I consolidated my student loans with Sallie Mae (around 1993), I should have read the fine print. However, I was broke, living in Boston, and did not want to default. Edited February 16, 2010 by untateve Quote Link to comment Share on other sites More sharing options...
Big John Posted February 16, 2010 Share Posted February 16, 2010 I read that as the interest over the life of the loan and not just the last 4 years. Quote Link to comment Share on other sites More sharing options...
MrTed46 Posted February 16, 2010 Share Posted February 16, 2010 I read that as the interest over the life of the loan and not just the last 4 years. +1 Quote Link to comment Share on other sites More sharing options...
Delicious_bass Posted February 16, 2010 Share Posted February 16, 2010 Here's the story-- I had received my student loan interest form from from Sallie Mae. So, I got to wondering what my payoff amount was on my student loans. I register on their site, pull up my account info and see that I only owe $2316. I have auto-withdrawal so I'm figuring I have about 7 more payments and my loan is all done. Woohoo! I tool around the site and I come across my repayment schedule. The repayment schedule showed that I'd be done paying off my loan in March 2014 and the total amount repaid would be $17,807.45!!! I'm thinking I must be reading the website wrong and therefore, I give Sallie Mae a call. I explain what I understand my loan payoff amount to me and the nice customer rep lady confirms this. I then ask about my loan repayment schedule as I can't believe that I'm understanding the website. The nice customer rep lady confirms that if I just keep doing auto-withdrawal, my payments will end in 2014 and I'll have paid $17,807.45. I start laughing as does nice customer rep lady. I'm somewhat incredulous and I ask her if I pay $2316 right now, I'm essentially saving $15,000? "Do I understand this correctly?" And nice customer rep lady confirms that I understand this correctly. Is it me or does $15,000 interest on the remaining $2316 of the loan seem a bit fn high?!? (I didn't ask nice customer rep lady that question as her laughing with me told me all I needed to know.) I paid off my loan right then and there, saving myself $15,000. You should have told them to go kick mud and then called one of those outfits where they promise to eliminate your debt for you. You know the ones... "Are you over $10,000 in debt...we know what the credit companies dont want you to know...dont let them ruin your life...we'll get you back the freedom you deserve!" Quote Link to comment Share on other sites More sharing options...
Yukon Cornelius Posted February 16, 2010 Share Posted February 16, 2010 I read that as the interest over the life of the loan and not just the last 4 years. math can for a challenge for some. Quote Link to comment Share on other sites More sharing options...
Chief Dick Posted February 16, 2010 Share Posted February 16, 2010 math can for a challenge for some. The Egg absorbs a lot of brain power. Quote Link to comment Share on other sites More sharing options...
Yukon Cornelius Posted February 16, 2010 Share Posted February 16, 2010 The Egg absorbs a lot of brain power. or maybe its controlling him?? Quote Link to comment Share on other sites More sharing options...
geeteebee Posted February 16, 2010 Share Posted February 16, 2010 math can for a challenge for some. As for can the English language for. Quote Link to comment Share on other sites More sharing options...
Yukon Cornelius Posted February 16, 2010 Share Posted February 16, 2010 As for can the English language for. Quote Link to comment Share on other sites More sharing options...
Chief Dick Posted February 16, 2010 Share Posted February 16, 2010 Ast for can the Eglish langage fir. Fixed for comprehension. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted February 16, 2010 Share Posted February 16, 2010 Fixed for comprehension. Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted February 16, 2010 Share Posted February 16, 2010 I read that as the interest over the life of the loan and not just the last 4 years. I read it as the total principal paid over the life of the loan. Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted February 16, 2010 Share Posted February 16, 2010 How much were your monthly payments? Quote Link to comment Share on other sites More sharing options...
untateve Posted February 16, 2010 Author Share Posted February 16, 2010 How much were your monthly payments? $363.10 Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted February 16, 2010 Share Posted February 16, 2010 (edited) Math makes no sense. Given that balance, payment amount, and interest rate you would have paid off as follows: Payment Interest Balance 2,316.00 1 363.10 14.96 1,967.86 2 363.10 12.71 1,617.47 3 363.10 10.45 1,264.81 4 363.10 8.17 909.88 5 363.10 5.88 552.66 6 363.10 3.57 193.13 7 194.37 1.25 0.00 Edited February 16, 2010 by CaP'N GRuNGe Quote Link to comment Share on other sites More sharing options...
Scorcher Posted February 16, 2010 Share Posted February 16, 2010 math can for a challenge for some. so can grammar Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted February 16, 2010 Share Posted February 16, 2010 And if my math is correct, you saved yourself $56.99 in interest by paying it off 7 months early. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted February 16, 2010 Share Posted February 16, 2010 thats how loan co, cc's, and bigbox stores get you. they hope you dont read the fine print or become lazy. then you get nailed with a backend late fee or penalty. they love the internet and automatic bill pay, means you dont even look at the bill. stay alert!!! Quote Link to comment Share on other sites More sharing options...
Big John Posted February 16, 2010 Share Posted February 16, 2010 so can grammar So can grammar. Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted February 16, 2010 Share Posted February 16, 2010 A 20 year loan at 7.75% straight interest on $ 45,000 with payments of about $369 a month would lead to a total of $45,000 prinicipal paid and $43,662 interest paid. Quote Link to comment Share on other sites More sharing options...
Yukon Cornelius Posted February 17, 2010 Share Posted February 17, 2010 As for can the English language for. so can grammar so can reading comprehension Quote Link to comment Share on other sites More sharing options...
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