Locking in a rate for a private loan

[Kingair1181]

Just like 95% of us out here I had to take out a loan to help pay for flight school. I took out money from Key Bank as a "Private Loan". Apperently that was all I could get from my flight school. Long story short, I have a fairly high interest rate right now, but it is looking to get higher, and I am just wondering if there are any lenders or banks out there that can lock in my current rate at the very least or better yet somehow get me a lower rate. Right now I believe my rate is around 8.25% which is killing me. Any ideas or thoughts? Thanks.

 

[NuGuy]

Yea, forget flying, return the money, go to college and get a real job. You'll be much happier in the long run, and wealthier to boot.

Nu

 

[User998]

I am just wondering if there are any lenders or banks out there that can lock in my current rate at the very least or better yet somehow get me a lower rate. Right now I believe my rate is around 8.25% which is killing me. Any ideas or thoughts? Thanks.

I have a Key Bank loan as well, and last month my interest rate went up to 7.5% from 6.3%, which raised my monthly payment almost $150 more a month. That took the monthly loan payment from almost-acceptable, to totally unacceptable.

I went down to my local bank, and got a fixed rate loan at 6.7% over 20 years, and the payment went almost back down to pre-interest hike rates.

Call your local banks, talk to them about your situation and see what options they might have. If you've owned your own home for awhile you might consider taking out a consolidation loan, or home equity loan and paying off a percentage of your loan, and refinancing as well. That would get your payments a lot lower, and also decrease your monthly payment.

Just a couple ideas.

 

[Kingair1181]

User - I don't own a home, barely can afford a run down apartment - just finished flight school a little over a yr ago. My "local" bank is Bank of America and they aren't alot of help but I might try a smaller local branch.

 

[User998]

Yea, I'd check the smaller local branches. That's who I always do my business with, and they seem to help you out a lot more, and do things for you that a big bank might not do. Smaller banks don't look at you as just an account number.

Where Key Bank has you by the kahunas is that the loan is considered a Private Loan, therefore it doesn't qualify for any loan-assisting programs (consolidations, fixed rate, etc.)

 

[navigator72]

I'm curious to know what the amounts of these loans are?