I’ll be the first to admit that, as in control of my day to day finances as I am, I’m really clueless when it comes to my student loan debt. In my head, I owe $60,000 for three years tuition at a private university. I think it’s a bit less than that, but I’m not really sure. I know I have loans with two different companies or organizations, but why? Again, not quite sure. I’m only paying on one of them at the moment because the other is in… deferment? forbearance? You guessed it: don’t really know.
All that is going to change this week. Yesterday I received two letters; one from EDFinancial and the other from National Collegiate Trust. It seems as though my student loan from one is being transfered to the other. That’s ok- I just have to call and make sure, but the real shock? The payment schedule. 24 payments beginning in August 2008, 333 payments beginning in August 2010 and 1 payment in May 2038.
That’s right, I’ll finish repaying my student loan, according to this schedule, in thirty years.
Thirty years. Gulp. So my project for this coming week is to understand as completely my student loans as I do the rest of my finances.
I’ll begin by going to each of these organizations’ websites and then contacting their customer service department. I’ll make sure to ask how much I can overpay every month and especially how much of the extra payments will go to interest and how much will go to principal. I’ll also ask about other payment schedules, as the payments they have me making are about 1/2 of what I’m currently paying. Unless this isn’t actually my student loan being transfered from one company to the other, but the other student loan entering repayment status. But again. I don’t really know!
What do you think? Is there anything else I should ask? Any other advice?