Crazy High Interest Rates

[Legalstudent]

What is the name of your state? Rhode Island

I am writing because my wife, to pay off some loans, took out a huge loan in the amount of 40,000 with the lending company Loan to Learn. She told me that Loan to Learn's policy is to give there customer the best option as far as paying there loans back. The loans that she wanted to pay were Federal loans and could have been consolidated with a much lower interest rate than she is receiving with Loan to Learn. She is upset because Loan to Learn did not tell her about consolidating the loans with a Federal Consolidation program and she took their loan with a very high interest rate around 15% to 19%, which fluctuates quite frequently. It's starting to become hard on our family with these very high interest rates

She would like to know if there some we can get the interest rates lowered from such a high rate with the company. Or is there a way where that since the information about the Federal consolidation plan was not given to her and she was misinformed, does it make her contract to Loan to Learn voidable?

I appreciate the responses that you give back.

 

[xylene]

What is the name of your state? Rhode Island

I am writing because my wife, to pay off some loans, took out a huge loan in the amount of 40,000 with the lending company Loan to Learn. She told me that Loan to Learn's policy is to give there customer the best option as far as paying there loans back. The loans that she wanted to pay were Federal loans and could have been consolidated with a much lower interest rate than she is receiving with Loan to Learn.

For some, their long term (25 years or more) is the best option.

She is upset because Loan to Learn did not tell her about consolidating the loans with a Federal Consolidation program

She should be upset at herself. A basic search of the internet would have been a good idea.

she took their loan with a very high interest rate around 15% to 19%, which fluctuates quite frequently. It's starting to become hard on our family with these very high interest rates

I wouldn't pay those rates on my Discover card. These were education loans... Not trying to be harsh...

Loan to learn rates are calculated as FED PRIME RATE (variable, currently 8%) + MARGIN RATE (variable 0.0 to 3.5, can be higher for some)

Your rate is the sum of two variable rates. At the high end of the base rates your rate would currently be 11.5% Undoubtedly your wifes rate is higher because she falls into the group of others who are subjected to a higher rate, usually because of very bad credit and/or a history of default.

You are subject to two variable components in your rate, this is why it varies often. Considering the ramifications of this rate structure was your wife's responsibility.

I think many people with no edu at all could explain the inherent risks involved with taking such a substantial (40k) variable and high interest loan.

She would like to know if there some we can get the interest rates lowered from such a high rate with the company.

Write to the company, but they are not bound (or likely) to do anything for your.

Or is there a way where that since the information about the Federal consolidation plan was not given to her and she was misinformed, does it make her contract to Loan to Learn voidable?

It was her responsibilty to research that information. Her lack of dilligence in finding the best product in a competitive market was her fault. The loan is not void.

I appreciate the responses that you give back.

Best of luck to you and your family.

You can make additional payments on the PRINCIPLE amount of your loan. This will get you out of this loan faster and greatly reduce the amount of total interest you will pay. Even a small supplemental monthly payment on the principle will reduce the time to payoff and total interest.

YOU CAN DO IT!

PS- If you have a home, and equity in it, consider using a fixed rate home equity loan to pay off all or some of this onerous high interest debt.

 

[Legalstudent]

I figured so

Being a paralegal myself, I figured that would be the answer. We were paying interest level and principle, but each month we do that our balance for the next month goes up. We've inquired why is this so to Loan to Learn. They gave us an answer that we really couldn't understand. For now, we are just paying the interest.