Quote:
Originally Posted by Saul Good
My wife owes about $20K. She's 2 years into the 5 year deal that will pay back $17,500 of it. I've got that sitting in an account drawing a little interest while we make the payments on time.
If she decides to change careers or stop working, the money is there to pay it all off. Otherwise, she gets $17,500 in 3 years, and we pay off the loan.
There's no harassment. My credit is 800+, and hers is in the upper 700s. The only possible reason to pay it off would be if you were worried about the government reneging on the deal, and you wanted to avoid 5 years of interest on the debt by paying it off early.
I'm not worried about that, and the interest is 2.25% on my wife's loans. (It sounds like it's higher for Phobia's, but I don't know that for certain.) Either way, it sounds like he's working on other debts as well.
At the very least, he should move this one to the bottom of the stack and focus on the other debts first.
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Okay, stand corrected on that part, then. I have heard of companies making a business out of collecting on student loans just like they would credit cards. Maybe some of that has changed with the recent overhaul to credit rules. Surprised it doesn't affect credit rating, though.