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Paying back loans in the US from Germany
Best options for money transfers
I need to start paying back student loans in January so I'll be needing to transfer money pretty much monthy and was wondering the best way to do this? If I get an account here at like Citibank or something will they transfer funds free even if its to another bank? I just don't want to get stuck having to pay a ton of money in transfer fees, so any suggestions?
check into paypal There are some people on this board who would be able to guide you along.
can you get a bank loan in germany for the amount owing and then pay off your loan in the states and start with one here
can you get a bank loan in germany for the amount owing and then pay off your loan in the states and start with one here
If the loans are through the US Dept of Education, you can set it up through their site so that your payments are automatically drawn from a checking account each month. Just need account number, routing number, etc.. standard EFT info...
There are no transfer fees, and if I recall correctly, if you do it this way, it even gets you a reduction in interest rate.
You can also get your statements via email as well.
Here is a link to the main site - http://www.dl.ed.gov/
and here are the FAQs on the Electronic payment, interest rate reduction ,etc..
There are no transfer fees, and if I recall correctly, if you do it this way, it even gets you a reduction in interest rate.
You can also get your statements via email as well.
Here is a link to the main site - http://www.dl.ed.gov/
and here are the FAQs on the Electronic payment, interest rate reduction ,etc..
QUOTE
Electronic Debiting
Electronic Debiting is a service that allows your bank to automatically deduct your monthly Direct Loan payments from your checking or savings account. Your payment will be forwarded to the Direct Loan Servicing Center for processing.
Payments may be deducted only from the borrower's bank account.
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What are the benefits?
Electronic Debiting is the most convenient way to make your Direct Loan payments. It is an efficient repayment method that will save you the time and inconvenience of mailing a check each month. With Electronic Debiting, your Direct Loan payments will always be made on time. And now there is the added incentive of a quarter point interest rate reduction.
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Can I reduce my interest rate if I pay by Electronic Debiting?
Yes. As an incentive to use the EDA repayment method, the Direct Loan Program offers a quarter point (.25%) reduction in your interest rate for repayment periods. Your interest rate reduction occurs automatically once your account is placed on EDA This discount will not apply during an in-School status, grace, deferment, or forbearance period. The U.S. Department of Education may discontinue this discount at anytime without notice.
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How do I set up this service?
You can complete an Electronic Debit Account Application form by either:
enrolling online
downloading a blank form
or by calling our toll free customer service number at 1-800-848-0979.
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How will I know if my Electronic Debit request is approved?
The Direct Loan Servicing Center will notify you in writing whether your Electronic Debit request is approved.
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What day will my bank account be debited and for how much?
The Direct Loan Servicing Center will inform you of your payment due date. Your account will be debited on that date. If it is not a business day, the account will be debited on the next business day.
The amount deducted will be your current monthly Direct Loan payment amount.
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What if I change my mind later and want to cancel this service?
To receive monthly billing statements in place of Electronic Debiting, you may cancel Electronic Debiting online or by contacting the Direct Loan Servicing Center at 1-800-848-0979. It may take up to 30 days to discontinue Electronic Debiting, so there may be one more automatic payment deduction from your bank account before you start receiving monthly bills.
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What is the interest rate discount if I use EDA?
As an incentive to use the EDA repayment method, the Direct Loan Program is offering a quarter point (.25%) reduction in your interest rate for repayment periods, effective November 1, 1999. Your interest rate reduction will occur automatically once you are successfully placed on EDA This discount will not apply during an in-School status, grace, deferment, or forbearance period. The U.S. Department of Education may discontinue this discount at anytime without notice.
Note: Borrowers in an in-School status are not eligible for EDA
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Download an EDA Application
The EDA Application Form is in a .pdf (portable document format). To download and view a .pdf document, you need to have © Adobe Acrobat Reader software installed on your computer. This software is free to download on the Internet and easy to use. You can obtain a copy with complete download instructions by visiting Adobe's Web Site.
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How can I make additional payments on my loan(s) if I am paying through EDA?
You can make additional payments while on EDA either by making an online payment from our Web site or by mailing payments to:
U.S. Department of Education
Direct Loan Payment Center
P.O. BOX 530260
Atlanta, GA 30353-0260
Make sure to write your account number on your check.
Note: Borrowers in an in-School are not eligible for EDA until they enter their grace period or repayment on their loan(s).
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If I’m on EDA, how do I change my banking information?
To change your banking information, you will need to submit a completed EDA application. Be sure to include your new banking information and that the Change Banking Information box is selected.
You may submit your EDA application online.
You may download a blank EDA application.
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If I’m on EDA and change my banking information, when will it be effective?
When a banking information change is processed you will be notified by mail as to when your debits from the new account will begin. Generally, it takes one debit cycle for the debits to begin from the new bank account. This will mean that your next debit will be done on your old account and the following debit will take place from the new account. You can also view this online under the EDA page.
Electronic Debiting is a service that allows your bank to automatically deduct your monthly Direct Loan payments from your checking or savings account. Your payment will be forwarded to the Direct Loan Servicing Center for processing.
Payments may be deducted only from the borrower's bank account.
Back to top
--------------------------------------------------------------------------------
What are the benefits?
Electronic Debiting is the most convenient way to make your Direct Loan payments. It is an efficient repayment method that will save you the time and inconvenience of mailing a check each month. With Electronic Debiting, your Direct Loan payments will always be made on time. And now there is the added incentive of a quarter point interest rate reduction.
Back to top
--------------------------------------------------------------------------------
Can I reduce my interest rate if I pay by Electronic Debiting?
Yes. As an incentive to use the EDA repayment method, the Direct Loan Program offers a quarter point (.25%) reduction in your interest rate for repayment periods. Your interest rate reduction occurs automatically once your account is placed on EDA This discount will not apply during an in-School status, grace, deferment, or forbearance period. The U.S. Department of Education may discontinue this discount at anytime without notice.
Back to top
--------------------------------------------------------------------------------
How do I set up this service?
You can complete an Electronic Debit Account Application form by either:
enrolling online
downloading a blank form
or by calling our toll free customer service number at 1-800-848-0979.
Back to top
--------------------------------------------------------------------------------
How will I know if my Electronic Debit request is approved?
The Direct Loan Servicing Center will notify you in writing whether your Electronic Debit request is approved.
Back to top
--------------------------------------------------------------------------------
What day will my bank account be debited and for how much?
The Direct Loan Servicing Center will inform you of your payment due date. Your account will be debited on that date. If it is not a business day, the account will be debited on the next business day.
The amount deducted will be your current monthly Direct Loan payment amount.
Back to top
--------------------------------------------------------------------------------
What if I change my mind later and want to cancel this service?
To receive monthly billing statements in place of Electronic Debiting, you may cancel Electronic Debiting online or by contacting the Direct Loan Servicing Center at 1-800-848-0979. It may take up to 30 days to discontinue Electronic Debiting, so there may be one more automatic payment deduction from your bank account before you start receiving monthly bills.
Back to top
--------------------------------------------------------------------------------
What is the interest rate discount if I use EDA?
As an incentive to use the EDA repayment method, the Direct Loan Program is offering a quarter point (.25%) reduction in your interest rate for repayment periods, effective November 1, 1999. Your interest rate reduction will occur automatically once you are successfully placed on EDA This discount will not apply during an in-School status, grace, deferment, or forbearance period. The U.S. Department of Education may discontinue this discount at anytime without notice.
Note: Borrowers in an in-School status are not eligible for EDA
Back to top
--------------------------------------------------------------------------------
Download an EDA Application
The EDA Application Form is in a .pdf (portable document format). To download and view a .pdf document, you need to have © Adobe Acrobat Reader software installed on your computer. This software is free to download on the Internet and easy to use. You can obtain a copy with complete download instructions by visiting Adobe's Web Site.
Back to top
--------------------------------------------------------------------------------
How can I make additional payments on my loan(s) if I am paying through EDA?
You can make additional payments while on EDA either by making an online payment from our Web site or by mailing payments to:
U.S. Department of Education
Direct Loan Payment Center
P.O. BOX 530260
Atlanta, GA 30353-0260
Make sure to write your account number on your check.
Note: Borrowers in an in-School are not eligible for EDA until they enter their grace period or repayment on their loan(s).
Back to top
--------------------------------------------------------------------------------
If I’m on EDA, how do I change my banking information?
To change your banking information, you will need to submit a completed EDA application. Be sure to include your new banking information and that the Change Banking Information box is selected.
You may submit your EDA application online.
You may download a blank EDA application.
Back to top
--------------------------------------------------------------------------------
If I’m on EDA and change my banking information, when will it be effective?
When a banking information change is processed you will be notified by mail as to when your debits from the new account will begin. Generally, it takes one debit cycle for the debits to begin from the new bank account. This will mean that your next debit will be done on your old account and the following debit will take place from the new account. You can also view this online under the EDA page.
ah, my area of specialty! no joke. i have tried (nearly) everything, except the citibank option or opening a dollar trade account at comdirect or whatever. i'm with consors, so maybe i should look into that.
oh wait, oh wait i am cramping up! sorry HW, no f*cking chance in hell will a german bank give a collateralless customer a loan. that's the problem in german and why, for example, small businesses have no chance.
AFAIK, it has to be a US bank account. i have automatic withdrawal from my US checking account. have done this since i've been in germany and it works well.
i used to use paypal as my "middleperson", but after much discussion (here on TT) and eventual calculation on my own, found out that although the exchange rate they were offering was good, in fact it was cheaper for me to do a monthly transfer via my bank. at the time, i think i calculated i was losing out on around €20 each time. x12, and see you see what adds up after a year.
the cheapest way is to get a second EC card for your bank account in germany and have someone you trust and love in the US to withdraw a specified amount each month and deposit it to your US bank account. you'll get the best exchange rate and pay only the fees at the teller machine in the US ($2 or so) and around €4 in d-land.
since my mom has not yet gotten around to getting a notary to verify who she is (the postbank will only give me a second EC card in my mom's name when she proves who she is & it is not possible that she does this in person!), i have been making transfers via SWIFT, online, through the postbank. cost me €1,50 + SWIFT fees (€7,50 or so) and the $10 my US bank charges me to receive the transfer. even though I do "our" payment (meaning i pay all costs from here), my US bank does not seem to "check" that.
QUOTE (hockeywidow @ Dec 7 2005, 8:17 am) 
can you get a bank loan in germany for the amount owing and then pay off your loan in the states and start with one here
oh wait, oh wait i am cramping up! sorry HW, no f*cking chance in hell will a german bank give a collateralless customer a loan. that's the problem in german and why, for example, small businesses have no chance.
QUOTE (Webmaster6 @ Dec 7 2005, 9:26 am)
If the loans are through the US Dept of Education, you can set it up through their site so that your payments are automatically drawn from a checking account each month.
AFAIK, it has to be a US bank account. i have automatic withdrawal from my US checking account. have done this since i've been in germany and it works well.
i used to use paypal as my "middleperson", but after much discussion (here on TT) and eventual calculation on my own, found out that although the exchange rate they were offering was good, in fact it was cheaper for me to do a monthly transfer via my bank. at the time, i think i calculated i was losing out on around €20 each time. x12, and see you see what adds up after a year.
the cheapest way is to get a second EC card for your bank account in germany and have someone you trust and love in the US to withdraw a specified amount each month and deposit it to your US bank account. you'll get the best exchange rate and pay only the fees at the teller machine in the US ($2 or so) and around €4 in d-land.
since my mom has not yet gotten around to getting a notary to verify who she is (the postbank will only give me a second EC card in my mom's name when she proves who she is & it is not possible that she does this in person!), i have been making transfers via SWIFT, online, through the postbank. cost me €1,50 + SWIFT fees (€7,50 or so) and the $10 my US bank charges me to receive the transfer. even though I do "our" payment (meaning i pay all costs from here), my US bank does not seem to "check" that.
oh, for any other questions, please post here. maybe some other us-american-loan-repayment-souls need this info too. otherwise pm me if it's too personal.
i wouldn't have been able to afford my education w/out student loans, so i'm no longer ashamed of having them. i didn't realiize i was smart enough for scholarships until grad school, but the deed was already done. but even scholarships can only get you so far.
if i were back in the u.s., this is one political area i would really be involved in.
i wouldn't have been able to afford my education w/out student loans, so i'm no longer ashamed of having them. i didn't realiize i was smart enough for scholarships until grad school, but the deed was already done. but even scholarships can only get you so far.
if i were back in the u.s., this is one political area i would really be involved in.
Yes, school loans are shit. I still have a U.S. bank account and have them taken out automatically from there. Once in awhile I'll transfer a big lump sum over to my U.S. bank account. And have just asked for checks for birthdays, Christmas, etc. since my whole family is in the States and it makes no sense to have them buy gifts and then mail them over. Seems to work the best for me.
i think IPJ said something about her bank in the u.s. paying for all transfer fees, so i thought i'd try it out. before when i transfered €'s to the u.s., i wanted to pay all fees from my german account, which never worked cause my u.s bank always charged my u.s. account $10 to receive the transfer.
anyhow, i did the BEN (?) transfer these last two times, & my postbank only charged me €1,50 to execute the int'l transfer & my u.s. account only charged my u.s. account the usual $10, so it seems to work! damn, when i add up how much i had been paying fee-wise from this side... aaarrrhhhhh. each month €8,50 for a damn SWIFT transfer, plus $10 on the u.s. side.
well, a lesson well learned.
anyhow, i did the BEN (?) transfer these last two times, & my postbank only charged me €1,50 to execute the int'l transfer & my u.s. account only charged my u.s. account the usual $10, so it seems to work! damn, when i add up how much i had been paying fee-wise from this side... aaarrrhhhhh. each month €8,50 for a damn SWIFT transfer, plus $10 on the u.s. side.
well, a lesson well learned.
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