Home > New consolidated loan

New consolidated loan

February 3rd, 2020 at 07:19 pm

As I mentioned in my last post, I refinanced my federal student loans with CommonBond. They disbursed the check to Great Lakes at the end of January, but I am still waiting for the payoff to go through on the website. The estimated payoff period for that is Feb 4-mid February because they physically mail a paper check and it can take some time to receive and process it. Meanwhile, my new private loan is officially active, so I’m updating my loan chart:

Consolidated Student Loan:
Principle: $131,916.00 Interest: $46.36 Total balance: $131,962.36

As part of the refinancing deal I got a $550 signup bonus, which I’m submitting as my first extra payment. This company clearly focuses on a certain type of borrower, because my daily interest cost for the loan is listed right there next to the balance on my account statement. ($11.59/day, ouch). Looking forward to watching this go down!

3 Responses to “New consolidated loan”

  1. rob62521 Says:

    Ouch is right, but good for you for refinancing and starting the new pay down. That's a nice sign up bonus. How smart of you to use it as your first extra payment.

  2. Lots of Ideas Says:

    I am so glad you noted the daily interest.

    I have very mixed feelings about students loans. On the one hand, they provide an opportunity for many to get an education. On the other hand, the payment options are so deceptive. People do not realize how happy the lenders are to just let the interest costs accumulate and add to the loan balance.

    I have young relatives with loans, and (like most people) they are buying clothes, fancy coffee drinks every day, and other ‘frivolous’ things - which they can because they have loan money. This makes me so afraid for them. I wonder if they knew ‘my loans will cost me x every day of my life for years’ if they would try to live frugally or work a little harder now.

    I am a boomer, and I only had to borrow $2000 for my four year degree, but I lost a lot of sleep wondering how I would ever pay it off. But of course, I did!

    Good luck knocking your loan out.

  3. creditcardfree Says:

    Numbers are powerful motivation! It will be fund to see daily interest and principal balance fall each time you make a payment.

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