SkyHigh

My vote is no. Sounds like an early pay off wouldn't save you much anyway. I hope you didn't do all this for flight training.

SkyHigh

ChinookDriver47

Nope, I did it all for the privilege of looking cool in a flight suit.

citationdrvrmob

It sounds like KeyBank keeps evolving its contract to screw over each new borrower more and more. I signed the papers in April 2002, and started repayment October 2003. I know from my experience that after paying the monthly payment for three years, my payoff amount had gone up about $3,500 and the principal had not even been touched. After selling my house to move to another job, I was able to put some of that equity towards the loan to start working on the principal. I'm not sure about each specific loan, but in my case, paying more per month does go toward paying off principal, but only if you have already paid all accrued interest. What most people don't realize when they sign (like myself), is that when your 20 or 30 years is done (however long Key financed it), your loan will probably not be paid off if interest rates went higher than when you signed the loan. That means you will be stuck with a balloon payment to payoff or refinance.

ScaryKite

You can do what I did, I saved up 1000 dollars, took it to the casino, played very conservatively at first, doubled up to 2 grand then started betting like crazy and turned 1000 bucks into 18 grand! I played off my student loans and made 3 car payments! Just a thought! It might back fire though, so you have to be willing to lose your initial cash. I know its not nearly as sound advice as consolodation, and dave ramsey books, but its what i did!

Aviatormar

Your the man, the John Wayne of Pilots, good on ya brotha, that's the american way, forget about the tradional stuff, just bet on black.

ChinookDriver47

I just got off the phone with Great Lakes, the folks who actually write the check for the KAL. I am 2 months ahead in payments and am taking good size chunks out of the principle. If you can get a month or two ahead, it will save you thousands in the long run. Jesus, I hate sending that much out every month!!!

flyman304

Has anyone had any luck with bankrupting the Key Bank loans. I am on my way to full Chapter 7 and need advise.

pagey

hmm i thought student loans didn't count for bankrupcy?

ehe2

I refinanced with loan to learn... Much better than great lakes and key. 5% fixed for 30 years. $100,000 at about $600 a month. It helped alot on first year pay.

wheresmyplane

I've been researching this myself. What I've found is that student loans generally aren't dischargeable in bankruptcy, but there are certain conditions where they could be. Obviously consult a BL attorney, but it seems judges generally rely on these criteria:

1. If forced to pay back the loans it would result in undue hardship for yourself and/or your dependants
2. That hardship would last for the duration of the loan
3. You have tried to pay the loan off.

From what I've read it is pretty hard to prove that the loans provide an undue hardship. If you're out at the bar all the time and come home to watch your satellite tv, etc. They might decide you just need to cut back. One thing that would be a factor is if you or a dependant had a chronic illness (Lou Gherig's, Parkinson's, MS), it would help you prove hardship. Also, as of Jul 1, 09 - if you work in certain industries that have low pay (teacher, special ed, hospice care, etc.) you may be granted loan forgiveness - I think without filing BK - if you have been in the field 10 yrs and have been making payments. This may not apply to our situation but some might find it helpful. Also, I've read about some judges that will never discharge a student loan, and then others that do it every time. Luck of the draw, I guess.

I also would recommend Total Money Makover. The philosophies in that book are very good. He makes the point that "The borrower is slave to the lender," referencing Prov. 22:7. (Hopefully not a TOS violation right there). I don't think anybody - religious or not - can deny that that's the truth. The unfortunate truth is that student loans are acquired by people at an age when they don't really understand what it means to be in debt for that length of time. People talk about how revolving credit card debt is the worst kind of debt, but they're wrong. Student loan debt is. With no statute of limitations and such difficulty discharging student loans in BK, people who tried to better themselves are punished while the irresponsible (who bought houses they knew they couldn't pay for, or ran up cc bills buying luxury items they didn't need, all while making a Wal-Mart salary) get off scott free in BK court. Without a statute of limitations, those with student loans are lumped in with murderers and those guilty of treason. For crying out loud, even child molesters reap the benefit of some kind of statute of limitations! How messed up is that?!

Anyway, before I get off my soapbox, I would reccommend NEVER getting a student loan if you haven't already. If I had it to do over again, I would've joined the army and let them teach me to fly helicopters on Uncle Sam's dime. Nothing on earth could make me sign my life away to SLM or Key Bank again. Not in a million years. You'd be better off working at McD's the rest of your life.