Reduce Monthly Studnet Loan Bill,in ACS.
I am going to graduate from my Masters program in May. I have $30,000
in student loans with ACS. They project my monthly 10-year re-payment
to be $300 or so a month.
However, I have $15,000 of their money sitting in a high-interest
bearing account. I want to give them the $15,000, cut my debt in half,
and make my repayment around $150 a month.
But I'm worried because I've gone through this before. Last time I
wanted to do a lump sum payment, they refused to modify my monthly
payment. They just told me to make the lump sum payment, continue the
high monthly payment, and just pay the debt off in half the time.
I want to decrease my monthly payment, not the term of my loan. Anyone
have a clue how I can get them to do that?
In most cases the terms of the loan set a fixed monthly payment - even
if you pre-pay. Pre-payment reduces the remaining principal, which means
you pay less interest and more principal each month so the loan is paid
off faster and with lower total interest cost - that is good.
Unless the lender is willing to essentially refinance to a whole new
loan with the terms you are looking for, your only option is to find
another lender who is willing to pay off the remaining balance after
your lump sum payment and write you a whole new loan. In either case,
there will probably be fees involved to refinance, and the interest rate
on the new loan might be higher than the old one.
If you are simply trying to reduce what you have to come up with out of
your monthly income, you might get similar results from just drawing
$150 each month out of the savings account.