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Posted in Student Loans
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Question By
comotellamas

4 Contributions
1 Person Helped
Should I stick with my federal student loan or try to get a lower interest rate on a private loan?
I am currently on the "level repayment plan" for my student loans meaning 10 years of set monthly payments. I am about 4 years in and I am trying to be smarter about all aspects of my financial situation. I'm not sure if it's best to continue paying on my loan or if there is another loan out there that would charge me less interest and/or allow me to pay off my loan sooner. I've tried to research but I can find much info online. Any advice would be much appreciated.

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4 Contributions
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Response to policebox

Thank you so much for you input.  I was assuming that it would be best to stick with my federal loans also, due to interest rates and the other benefits you describe.  I guess I just wanted to pose the question to see if I was misunderstanding something or to see if there are any other loans that may be better. 

I know that I should have included more info to more accurately describe my situation -  I owe around $25,000 in federal student loans and around $19,000 on an auto loan at 2%.  My income is about $50,000 per year.  I use credit cards for small purchases and pay them off monthly so I have no other debt.  I guess my goal for right now is just to make sure that I have the lowest interest rates I can get on my debt so that my payments are making a bigger dent in my debt.  It sounds like I am doing that by having federal student loans and 2% interest on my car.  

More of a long term goal would be to pay off my car and my student loans early - both have about 72 months left of payments if I only pay the minimum.  I'm conflicted right now on if I should be focusing on paying more on my loans or trying to build a savings account for myself, which as of now is minimal.

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