I pulled out a $12,000 private loan, is paying back 28,000 normal?
Its a 20 year loan, $600 start fee, and a little over a $100/month to pay it back.
Is this decent for a private student loan?
I wasnt able to get a federal loan this time around… So I knew going into this that the rates and interest would be higher… But this high?
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That’s probably about right…when you stretch out what is a relatively small amount for so long, the payments are low, but they are going to go mostly to interest. You should try to pay more than the minimum.
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I went here and plugged in your information: http://www.finaid.org/calculators/loanpayments.phtml
If you managed to find a 6.8% interest rate, you’d pay back a total of $22,263.61.
Keep in mind: You are paying back only $100/month over a period of 20 years.
So, yes…with low monthly payments and a looong payback schedule, you’ll be paying much more than usual, and all because of the interest. What is your interest rate, by the way? You didn’t mention it, and that might factor into why you pay so much.
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