<p>I know I need to make a phone call, but can't do it at work today so I thought I'd post here and get a little info/advice before I get in the hell known as "phone call to big scary places like Sallie Mae".</p>
<p>D's first loan payments are due in January. She has loans for all 4 years of college, different amounts, different interest rates (all were subsidized staffords). </p>
<p>She would like to consolidate all of them into one (I assume they average out the interest rates). What is the first step to doing this? Through Sallie Mae or someone else???</p>
<p>Also, let's say her monthly payments are $150. If she wants to make a bigger payment (she has some $$ saved) will this go towards the loan (not interest) like in a house payment? </p>
<p>Also assuming you can do online payments - can you do this only through bank withdrawals? I think that something online makes more sense than mailing off a check each month....opinions????</p>
<p>I know "we" should be more up on this - once I saw the due dates of January I didn't worry too much about it - she is out of town and will be home for the holiday weekend - I will hand all the gathered paperwork to her then, but would also like to reduce the over all stress of "ah!!! paying back student loans!!!" by being able to explain things clearly to her.</p>
<p>Thanks in advance for any advice. :)</p>
<p>Editing to say I thought I was posting this in the FIN AID section - feel free to move if that's a better spot.</p>
<p>You can make additional payments to reduce the principal. However it is important that you make it quite clear that the additional payments are to go toward principal as the lender is allowed to just treat them as if they are payments in advance. Some posters have reported that their lenders have told them the additional payments can not be applied to principal, but this is not true.</p>
<p>Swimcatsmom, so “asking” for payments to go towards principal can only be done by literally writing a note with each check sent in? This can’t be done electronically?</p>
<p>The article helps some - thanks. So much jargon for this unfinancially operating mind!!!</p>
<p>So, from what I remember, student loan consolidation can only occur if the loans are from the same lender. </p>
<p>Not recalling, abasket, if your DD took a break from school, but the unsubsidized Staffords have had the same interest since the 2006-2007 school year of 6.8%.
I remember this because we were able to consolidate my son’s first 3 years of loans to a 4.7% interest; his 2006-2007 year loan is at 6.8%
And my May 2011 graduate’s loans are all 6.8%.</p>
<p>So my point is, if they are all from the same lender, there will be one sum and one payment, and no need to consolidate.</p>
<p>Well, the due letters are all Sallie Mae…and all subsidized with no break in school - I see the interest rates on the letters…I’ll try and make a call tomorrow just to hear the correct (I hope) guidance from them.</p>
<p>My daughter has just starting paying back her unsubsidized Stafford loans. I called each lender (there were two), and each assured me that any extra payment would go toward the principal. (One told me that the interest is calculated every day.) My daughter chose to make electronic payments through her bank to the lenders.</p>
<p>We didn’t see the need to consolidate, so I have no info about that. She’s going to try to pay off the smaller one first by adding extra money to the payment each month, and then concentrate on paying off the other one as fast as she can. Guess she’ll be living at home with me for a while! But it’s all good.</p>
<p>One tip: Have your daughter register online with the lender (if she hasn’t already), and check her balance after she pays a couple of payments, just to make sure everything is being entered correctly.</p>
<p>Sorry, I misread. Our family’s loans were unsubsidized, the OP’s loans were subsidized.
That may account for differing interest rates each year.</p>