I mentioned in a previous post that the highest interest
loan I had was nearly 10% with Sallie Mae. Well, this may be shocking but when
I first got that loan, the interest was actually about 14.75%. And I had about
$18k of it….let that sink in. $18k debt with a 14.75% interest rate. If I was
an investor that is the best rate of return I have EVER heard! However, being
the borrower, for me, it was THE WORST deal of my life. I won’t get into why I
got this loan in the first place (I was an IDIOT). I have seen a lot of posts
on the internet about Sallie Mae being the devil, and this interest rate for
student loans is truly something so corrupt and evil. Anyway, that’s a rant
that is neither here nor there. Here is what I did that helped me deal with
this crushing loan:
I got the interest reduced to 0% for one full year!
I sent an e-mail to Albert Lord (VP & CEO)
at Sallie Mae. This was done slightly out of desperation, and I wasn't truly expecting anything to come of it - but I had nothing to lose. I came across this idea after Googling what others did in my
situation.
At the time, I was unemployed and I couldn’t make my payments (which were $300/month at the time). I had been paying my loan for a year, but hadn’t made a single dent in the loan because of the large amount and high interest rate. I e-mailed Albert Lord and explained my situation about how I have been making payments, how little I earn, and what my total debts look like – truly crushing. And to my surprise, he gave me a very generous deal – he let me go interest-free for one whole year. Now from 14.75% to 0% - that is huge! This really helped me out, and I appreciate this. I don’t know if Sallie Mae would still do this because I put this request in back around 2009. I paid off what I could so that the interest wouldn’t creep up on me again when the interest rate got back. I got lucky though because after 2009 interest rates dropped and my loan with Sallie Mae was fluctuating and my interest dropped to just under 10%. Still very high, but by far an improvement.
Now I don't want this post to seem like a positive review of Sallie Mae. The interest rates they charged are truly sinful - but, this technique did help me save way over $2655 in interest in one year.
At the time, I was unemployed and I couldn’t make my payments (which were $300/month at the time). I had been paying my loan for a year, but hadn’t made a single dent in the loan because of the large amount and high interest rate. I e-mailed Albert Lord and explained my situation about how I have been making payments, how little I earn, and what my total debts look like – truly crushing. And to my surprise, he gave me a very generous deal – he let me go interest-free for one whole year. Now from 14.75% to 0% - that is huge! This really helped me out, and I appreciate this. I don’t know if Sallie Mae would still do this because I put this request in back around 2009. I paid off what I could so that the interest wouldn’t creep up on me again when the interest rate got back. I got lucky though because after 2009 interest rates dropped and my loan with Sallie Mae was fluctuating and my interest dropped to just under 10%. Still very high, but by far an improvement.
Now I don't want this post to seem like a positive review of Sallie Mae. The interest rates they charged are truly sinful - but, this technique did help me save way over $2655 in interest in one year.
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