I currently have a Signature Student Loan through Sallie Mae. I had to use Sallie Mae and private loans while studying for my Master’s Degree abroad.

Now I am left with a loan which I have been repaying, with a 12% interest rate. I realistically would be better off paying it off on a credit card and repaying that for the next 10 years- which I have no desire to do and would NEVER think of doing that. But basically after next year, my loan payment will increase to way more than I can afford a month. And I would like to have something more affordable and with a lower interest rate if possible.

My question is- is there a bank/any option out there that would buy the loan and I can repay at a MUCH lower interest rate? What are my options? Or are there any options for me?

Thanks.

Hello.  Thank you for your inquiry.  As I am sure you already know by now, private lenders offer fewer borrower protections than their federal lending counterparts and are often far less flexible when it comes to repayment.  Unfortunately, because of the laws governing attorney-client relationships, Heather cannot provide you with personalized legal advice without first associating with local counsel in your state.  She is only able to provide you with general legal information. 

For more personal assistance, she recommends GLAdvisor.  GLAdvisor is a unique company helping student loan borrowers, like you, manage their student loan decisions and paperwork, including tax preparation.  Heather acts as a consultant to GL, and has been very impressed by their service and expertise.  You can get a free assessment at https://clientportal.gladvisor.com/registration.aspx and see what you think before you decide what’s best for you.

That said, someone in your position may want to consider a couple of options:

Loan consolidation can sometimes lower payments and offer competitive interest rates.  Learn more here: http://askheatherjarvis.com/blog/the-scoop-on-student-loan-consolidation.

Some private lenders may eventually negotiate a payment plan or debt settlement.  IF you have a lump sum of money, there may be some possibility of settlement of private loans: http://www.studentloanborrowerassistance.org/default-and-delinquency/compromise-settlement/, I know that isn’t an option for most of us. 

Sorry for the lengthy response and best of luck!

Regards,

James Jarvis
Communications Director
Heather Jarvis, Student Loan Expert LLC

Hello Sharron.  Sorry for not replying to you sooner.  My name is James and I am Heather’s Communications Director.  You always want to exhaust your federal student loan options before considering private student loans.  Private loans offer fewer borrower protections, which could become important when it comes to repayment.  Also, federal loans have significantly more repayment options.

To read more about the risks of private loans, follow this link: http://askheatherjarvis.com/blog/the-private-student-loan-problem.

Good luck!

James D. Jarvis
Communications Director
Heather Jarvis, Student Loan Expert LLC

liebs1011 - 04 January 2013 03:17 PM

I currently have a Signature Student Loan through Sallie Mae. I had to use Sallie Mae and private loans while studying for my Master’s Degree abroad.

Now I am left with a loan which I have been repaying, with a 12% interest rate. I realistically would be better off paying it off on a credit card and repaying that for the next 10 years- which I have no desire to do and would NEVER think of doing that. But basically after next year, my loan payment will increase to way more than I can afford a month. And I would like to have something more affordable and with a lower interest rate if possible.

My question is- is there a bank/any option out there that would buy the loan and I can repay at a MUCH lower interest rate? What are my options? Or are there any options for me?

Thanks.

The only solution that you have is Loan Consolidation,which will provide you the complete information about loan..Consult and have an idea about that..