Hi there! I, like some, have extended and unbelievable student loan debt and I haven't been able to see any progress…
But i have an asset (inheritance) that can cover it in full. It's in disbursement. I would like to pay in full but is that smart? If i contact them, will they negotiate if a full payment is forthcoming? Should I pay a giant chunk and negotiate monthly payment after?
The asset isn't huge, but student loan is my only huge debt. I think it's split across several lenders. Otherwise I don't have credit built much at all. Finance is a game I've never dared to play (as my puzzlement indicates).
If anyone out there has wisdom, I appreciate you in advance
Help! Student loans…what's the best option??
byu/Puzzleheaded-Sky3141 inpersonalfinance
Posted by Puzzleheaded-Sky3141
4 Comments
Gather the interest rates on each of the debts.
Then apply the principles of the Prime Directive.
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Sounds like you are asking about a framework for what to do with money.
Start with reviewing the Prime Directive in the PF Wiki. It will answer your question and many other questions you didn’t realize you should be asking.
* https://www.reddit.com//r/personalfinance/wiki/commontopics
pay off whichever debt/loan has the highest interest rate once you have extra money in your bank acct.
if your inheritance is given to you in multiple disbursements, wait until after you have received it, before using it.
You are going to get lots of advice on this one.
Remember, personal finance is personal.
More info is needed before any informed advice can be offered.
For example, what is your monthly income?
What are your expenses?
How much debt do you have?
What is the asset worth after it’s sold?
Is the asset sentimental in any way?
The more information the better.
I don’t think you can negotiate out of student loans. At least not federal loans. They can’t be discharged in bankruptcy and they can garnish your wages.
Whether it is smart to do depends on your age, interest rates, and risk tolerance.