I have a alternative student loan. The interest rate is ridiculous. For every payment I make it takes only?

Question

$20 off the balance. While $70 dollars goes to interest. I need to lower this. But keep reading that these types of loans cannot be consolidated. If anyone knows what I should do please let me know.

Answer 1

Too late, you f.u.c.k.e.d up.

Answer 2

Danetteed has the right idea.  These loans will suck the life out of you, and if you think it is bad now, wait till the interest rates start to go up.  

There are usually no good consolidations for private loans.  You usually end up on the losing end of those as well.  Your two options are, increase your income, and decrease your expenses - then use the extra money to pay off these high interest rate loans first.  

Make your normal monthly payment, then make a 2nd payment and instruct the lender to place the payment toward principle owed on the loan.  If this is an education loan this should not be a problem to have this done.

Answer 3

Make higher payments.  If $20 goes to principle and $70 goes to interest now, then if you increase the payment by $50....then $70 would go to principle and $70 would go to interest.  Or if you can double the payment, then $70 would go to interest and $90 would go to principle.

Answer 4

There are two sources for student loans -- the federal government and private lenders. In order to obtain most federal student loans, you will first need to file the Free Application for Federal Student Aid (FAFSA). In most<!--instances the FAFSA is required for all federal financial aid including federal student loans. Deferment options are available while you are still attending school at least half-time.  There are four main federal loan programs.

http://best-loans.awardspace.com/student...

Federal loan consolidation is for students who are in repayment status or parents who wish to extend the repayment period on their current PLUS and obtain a fixed interest rate for the life of the loan-->you can combine all of your eligible federal student loans into one loan with a Federal Consolidation Loan. Consolidating also locks the interest rate you pay on your loan.