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Posted in Student Loans
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f4nt0d

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Private loan for school building up interest - not if I should be paying interest now.
I have a $10,000 private loan I took out with a parent as a co-signer because I could not get enough financial aid for the cost of school and did not have the disposable income. I have already accrued over $2000 in interest (6.88%), and I am finally ready to tackle this. I can not afford very large payments (only 50 to 75 dollars a month realistically), and I'm wondering if I should start paying off the interest or the principle, or keep deferring it while I'm in school and working a part-time job. A friend of mine recommended declaring bankruptcy, as I have slightly over $18,000 dollars in loans (all federal student loans except for this private one), but that sounds like a last resort more than anything else.

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