Question regarding repaying loans...

[TinyDancer]

Ok, bear with me. I have student loans (who doesn't) and have decided I'd like to pay off some of them as soon as possible. Now. I have a Citibank loan at 3.5%, the monthly payments are only $50.25 a month. My AES loan is actually a number of loans all being lumped together and paid back together. The interest ranges from 2.48% on all of them but two, which are 6.8%. Now, the repayment amount in total is $318.63 a month, each individual loan being a different amount ranging from $21.74 to $65.64. The interest rates do not corrolate to the monthly payment amount.

SOOOOOOOOO.............

Does anyone know if in these AES loans you can put extra money towards one specific loan or if it can only go across the board? If that's even possible, what should I work towards first, the higher interest or the higher repayment? Obviously the higher payments have higher balances. Or should I pay off the Citibank loan and just have one less completely done???

I'm sorry, this is probably very confusing. I'm going to try to get in touch with AES or someone else if you guys can't help. However, I'm hoping at least SOMEONE has some advice (and that's all I'm looking for is advice, I wouldn't hold anyone responsible for anything that happens based on what anyone has said and what I choose to do, haha) because AES is a nightmare to talk to and I've found that in the past they have no idea what they're talking about, nor would they want me to payoff early because that's less money for them!!!

Thanks in advance guys, I really appreciate all the help I always get from you!!!

[MMFreak]

The AES loans you should be able to consolidate. You should check that out first. But make sure that doing a consolidation is worth it for you (you can apply for consolidation on their website)...

Although Consolidation may sound like a great option, keep in mind the following information:
•Consolidation may extend the term of your loan which will increase the total amount you will pay back.
•If you currently are receiving loan incentives for direct deposit or timely payments, you may lose those benefits.
•Compare your current interest rates with the consolidation rate.
•Perkins Loans may not retain their subsidy once they are included in a consolidation loan

[Ian]

I consolidated my student loans with Citibank a number of years ago and I pay something like 1.52% interest on them I think.

A quick question ... Do you have any other debt at all? Student loan interest is, along with mortgage interest, one of the few types of interest you can still deduct on your income taxes. It may not be the best use of your money to pay off relatively low interest, tax deductible loans.

[BrerGnat]

Just so you know, Student Loans are one of those things that you HAVE to pay back, no matter what. You can't bankrupt student loans. If you run into financial hardship later on, the bottom line is, you will STILL have to always pay back your student loans, regardless of your situation.

If I were you, I'd start by taking your higher interest loans (although, even at 6.8% we're not talking a "high" interest rate), and seeing if you can find a lower rate somewhere else.

In GENERAL, the advice is ALWAYS to pay off the higher INTEREST bearing loans first, regardless of the balance owed. Save your lowest interest loans for payoff when all the others with higher interest rates are done with.