Paying Off High Interest Student Loans?

November 14, 2005

Graduation hat on top of a pile of coins.I am trying to help my daughter who has come down with a medical condition preventing her from working regularly to pay off a huge old student loan. I didn't realize she still owes over $40,000 after eight years, mainly because of high interest rates. Is there anyway to get this reduced to a reasonable amount when the loan has been sold off two or three times by the original and subsequent lender?


Thank you for your assistance, we really need help.

Jim King


By Linda (Guest Post)
November 15, 20050 found this helpful
Best Answer

Is your daughter considered disabled? Can she get social security disability payments? I started college at age 42, using student loans. I had to retire about 10 years later due to medical problems. If she can get disability, her student loans can be wiped out. That is what I did.

November 15, 20050 found this helpful
Best Answer

Apply for a consolidation loan and lock in one low interest rate, instead of a variable one. I just did this in July and cut my monthly payment by over 60%. It only added a little more time on to the length of time to pay off the loan and I can now afford the payments and can afford to pay a little extra each month.

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More Questions

Here are the questions asked by community members. Read on to see the answers provided by the ThriftyFun community.

September 22, 2008

Are there any financial institutions or private lenders that can help pay off high interest student loans? My daughter borrowed just over 20K and it will take 15 years to pay off for a total of nearly 80K! That's a heck of a lot of interest!

Kelly from Renton, WA


By crazyliblady (Guest Post)
September 22, 20080 found this helpful
Best Answer

I know that there are certain ways that people can get at least part of their student loans forgiven. These are the resources I know of. Hope this helps.


Cancellation/Deferment Options for Teachers

Teach for America

Peace Corps


Federal Student Loan Forgiveness

By Carol in PA (Guest Post)
September 23, 20080 found this helpful
Best Answer

My kids made double payments to cut down on interest paid. If your former student can make two payments a month, it would not only take half as long to repay but cut interest in about half or more depending on how its compounded. If two payments per month arent possible, try one and a half payments per month. Even ten extra dollars per month paid on a loan adds up in the long run.


Go to the library and read books by Suzie Orman. Best of luck

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