Fed Financial
Is it possible to return a loan back to the bank?
I recently got a small loan from chase student loans to pay for my room and board fees but i decided to live at home. I recieved the check and a breakdown of its terms over the weekend. it will take me 30 years to pay off a $8500 loan and i would end up owing them $30,000...wtf? Is there a way for me to give back the check and cancel the loan even though i signed the promissory note?
Public Comments
- Just call and get a pay off. You'll probably have to pay some interest on the loan but it shouldn't be that much.
- If you are lucky, you can pay off the loan and end up owing just a small amount of interest. But you need to look at the loan fineprint. There may be a penalty for paying it off early. I've never dealt with student loans, and certainly not one with a 30 year payoff. With todays climate and the way banks works, I would not be surprised if they make it difficult to pay it back early.
- If you have not cashed the actual check you probably have not activated the loan. Just call them and see if you can just cancel the loan. If the loan can not be cancelled, you should be able to just pay off the loan by paying the entire balance back to them. Worst case is you would have some interest charged for the period of time you did have the loan, but that should be minimal. If you have to go this way just be sure there is no pre-payment penalty. Also, no matter what you do be sure to keep all the documentation so that they don't try and come back to you several years down the road saying you never paid it back.
- If you already signed the note, then you need to read the fine print. If there is no "pre-payment penalty", then you can pay off part/all of the loan as soon as you have the money. Good for you that you're realizing that debt is dumb, at such an early age.
