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[cubanb]

So I am graduating and I just consoldiated my loans. Why consolidate?
stafford loans have variable interest rates, but by consolidating all your loans into one big one, it will allow you to fix the rate at a low rate. Meaning that when rates go up AND THEY WILL , you will stay be paying this alltime low interest rate.
However on July 1st, the new interest rate is being announced. Right now it is at 2.77% which is EXTREMELY LOW. They predict a rise in rates of at least 1% and maybe even 2%. Over a 15 year loan period and a good amount of loans, this means thousands of dollars.

If you want to consolidate your federal student loans (stafford and perkins, etc) , find a lender and call them up. You don't need any of your info besides your SSN, two references and your normal personal contact info. They can look up all your loan information just by using your SSN. The company I called was very helpful and I now have locked into a low interest rate that will fall even lower when I make 36 on time payments.

Don't delay, it takes time to process the applications. So contact a lender soon. I don't wanna advertise for the site I went through, but if you want to know, PM me.

 

[Richard Cranium]

Kinda OT, but I'm applying for financial aid for the first time in my life right now. Is there a reason why you don't want to advertise your lender? Also, my school just sent me a recommended list of lenders. Is it wise to go outside of that list?

 

[cubanb]

Kinda OT, but I'm applying for financial aid for the first time in my life right now. Is there a reason why you don't want to advertise your lender? Also, my school just sent me a recommended list of lenders. Is it wise to go outside of that list?

im not listing my lender because I don't want it to seem like a referral or anything. Most lenders are the same. If these are subsidized or unsubsidized direct loans, the lender won't matter too much. I would stay away from Sallie Mae though, I always hear bad things about them.

also for later on after you graduate, there is a thing called a single lender rule, where if all your loans are one type and only from one lender, you have to consolidate with them. So, say you took out all your loans from Sallie Mae, you have to consolidate with them. The reason this is bad is that there are some good offers out there to give additional discounts.
However, this might not matter by the time you graduate because I hear that congress is trying to pass a law that wont allow you to consolidate at a fixed rate anymore. The reason is the government subsidizes the difference between the fixed rate and the current market rate. In the future , consolidated loan rates might be variable.

 

[Tarazet]

This reads like a spam message, but its content is right on. Thankfully I don't have to deal with student loans.

 

[Phoenix]

Be sure to shop around though, be careful of any fees that you get shacked with as they will eat into your savings. Nevertheless, refi of student loans is definitely a good idea now ... or very soon. The rates WILL be going up.

 

[Richard Cranium]

Ah, ok thanks. One of the preferred lenders was sallie mae, so I'll be sure to stay away from them. I noticed that some of the lenders don't charge fees so you get more money up front. I plan to pay off my loans within a few years of graduating, so I'm thinking I should go with a lender like this. Any problems with that line of thought?

 

[cubanb]

Be sure to shop around though, be careful of any fees that you get shacked with as they will eat into your savings. Nevertheless, refi of student loans is definitely a good idea now ... or very soon. The rates WILL be going up.

yea, you need to shop around a bit, but in the current market many have discounts for automatic payments and timely payments. Ive been researching this on a financial site and theres some really good incentives.
You should not have to pay any fees for consolidation. any decent lender wont charge you for this

 

[cubanb]

Ah, ok thanks. One of the preferred lenders was sallie mae, so I'll be sure to stay away from them. I noticed that some of the lenders don't charge fees so you get more money up front. I plan to pay off my loans within a few years of graduating, so I'm thinking I should go with a lender like this. Any problems with that line of thought?

they will make their money one way or another. There will always be some kind of fee for starting a new loan. Even the government's direct service loans have an orgination fee. It may be hidden in a higher interest rate, im not sure. Just be sure to look very carefully at the terms and don't be afraid to call your schools financial aid office to help clarify the difference

 

[WrathOfOtaibah]

Mine are being consolidated tomorrow actually.

 

[Richard Cranium]

Makes sense. My current plan is to get as much subsidized money as I can get and that's it. A couple of the lenders I looked at say they don't charge any origination fees. Sallie mae offers an option like that, I think, in exchange for fewer incentives down the road. It seems that if I'm going to pay off my loans within say 2 or 3 years of graduation, it's better to get as much money as possible now rather than later.

 

[KilledByBill]

I think I'll give this thread a bump since we are getting close to July 1st.

I've been considering consolidating my loans (about 17k) through the Direct Loan Service center. However, once I do that I have to start paying immediately. My grace period lasts until December of this year. Is there any way I can lock in my loan interest rate but still hold off on paying until the end of this year?

Any advice is appreciated.

 

[fart]

unfortunately i'm going to be needing to taking out more loans in the fall :/

please interest rates go down before i graduate again

 

[nathkenn]

I have about $60,000 in student loans, so dont feel bad. Most of it is also private loans with interest rates of around 7%. Anybody have any tips on where to consolidate a private student loan? =(

 

[Wellington]

I still owe about 15 grand, good thing I have been putting off on consolidation!

 

[empanada]

I was planning to do this soon. Thanks for the reminder.

 

[Manders]

my first payment is due in less than a month. that's $100/month for 10 yrs

 

[Spike Spiegel]

All right, I guess I need to look into this.

 

[Manders]

oh be sure to use more than one lender if you're still in school. if not, you will have to consolidate with that one lender

 

[AirBrian]

My good friend just finished dental school and said he just consolidated his federal student loans. The damages came out to $150,000 at 1.5% for 15 years. Pretty nice deal.

 

[Spike Spiegel]

I would stay away from Sallie Mae though, I always hear bad things about them.

also for later on after you graduate, there is a thing called a single lender rule, where if all your loans are one type and only from one lender, you have to consolidate with them. So, say you took out all your loans from Sallie Mae, you have to consolidate with them. The reason this is bad is that there are some good offers out there to give additional discounts.

:lol

...

*has all his student loans with one lender... Sallie Mae*

 

[cubanb]

I think I'll give this thread a bump since we are getting close to July 1st.

I've been considering consolidating my loans (about 17k) through the Direct Loan Service center. However, once I do that I have to s I can lock in my loan interest rate but still hold off on paying until the end of this year?

Any advice is appreciated.

The lender I used said my grace period is still valid. You should call a lender up just make sure, but mine said I wouldnt have to make a payment until January or something. Check your PM, ill give you the lender I used and they can look up all your loans and tell you if its possible.

*has all his student loans with one lender... Sallie Mae*

:lol :lol My friend is in the same boat, some schools have Sallie Mae as their default lender. Luckily my school doesnt do that.

I have about $60,000 in student loans, so dont feel bad. Most of it is also private loans with interest rates of around 7%. Anybody have any tips on where to consolidate a private student loan? =(

Unfortunatley, I have not seen any offers, let alone good ones. The reason the banks will only consolidate the federal loans is because the government (aka us taxpayers) pay for the difference in the interest to the bank when the rate goes up back. Congress has been toying with the idea of not allowing consolidation loans to be at fixed rates. Looks like my private loans will remain variable, unless I can find some good debt consolidation loans to take that and my CC debt.

My good friend just finished dental school and said he just consolidated his federal student loans. The damages came out to $150,000 at 1.5% for 15 years. Pretty nice deal

Your friend was just relieved of 10's of thousands of dollars in interest. I only have 15k of federal and the guy said my savings was like 2-3k if I remember correctly.

 

[Bog]

my first payment is due in less than a month. that's $100/month for 10 yrs

My loans total more than $500 a month for the next 13 years. Stop your whining.

 

[Fragamemnon]

The damages came out to $150,000 at 1.5% for 15 years. Pretty nice deal.

That is a sexy,sexy refi, right at the edge of financial porn. Mad props to him.

Getting away from variable rate long-term debt is a good idea right now. Interest rates are beyond bizzaro land right now, but eventually they'll have to go up some.

I always wondered why there weren't more financial planning posts on GA. Seems like in all the years this place has been hopping, more than a few of us are getting to the point where managing and investing are becoming priorities.

 

[cubanb]

That is a sexy,sexy refi, right at the edge of financial porn. Mad props to him.

Getting away from variable rate long-term debt is a good idea right now. Interest rates are beyond bizzaro land right now, but eventually they'll have to go up some.

I always wondered why there weren't more financial planning posts on GA. Seems like in all the years this place has been hopping, more than a few of us are getting to the point where managing and investing are becoming priorities.

Cyan has written some good posts here about finance, but I never expect finance to replace the FAP threads we have, so I also lurk on fatwallet's finance forum a lot and do a bit of reading off fool.com along with checking out those FAP threads

 

[AirBrian]

That is a sexy,sexy refi, right at the edge of financial porn. Mad props to him.

Getting away from variable rate long-term debt is a good idea right now. Interest rates are beyond bizzaro land right now, but eventually they'll have to go up some.

I always wondered why there weren't more financial planning posts on GA. Seems like in all the years this place has been hopping, more than a few of us are getting to the point where managing and investing are becoming priorities.

Yeah, he was very fortunate on the timing. Now he can put more energy into developing a clientele rather than worrying about paying bills.

 

[Deleted member 1235]

2.7 percent?

Congratulations America.

Come to new zealand and you can have a 28 thousand dollar loan with an 8.5 percent interest rate just like me!

*vomit*

 

[Escape Goat]

I think i am going to have to take out a loan to finish school. I have 3 more semesters ahead of me and I'm 22. I plan to head to the Financial aid office soon and get some info but does anyone else have tips/info/etc?

 

[Spike Spiegel]

Okay, I'm at Sallie Mae's website RIGHT NOW, filling out my application for consolidation. They're asking me to choose a repayment option, and they have this thing called "Grad Choice", where for the first 2-5 years of your term you make lower monthly payments (interest only, even), and then after that full payments for the remainder of the term.

So for example, with Grad Choice 2 (2 years), I'd pay... $30 monthly for two years, then $86 monthly for the next 10 years until the loans are repaid. But then they've got this part:

The calculations provided below are estimates only. Your actual monthly payment amount and total payment amount will vary. Certain restrictions apply; available repayment options will vary.

Safe? Or should I stick with the standard payment plan?

 

[cubanb]

Okay, I'm at Sallie Mae's website RIGHT NOW, filling out my application for consolidation. They're asking me to choose a repayment option, and they have this thing called "Grad Choice", where for the first 2-5 years of your term you make lower monthly payments (interest only, even), and then after that full payments for the remainder of the term.

So for example, with Grad Choice 2 (2 years), I'd pay... $30 monthly for two years, then $86 monthly for the next 10 years until the loans are repaid. But then they've got this part:

Safe? Or should I stick with the standard payment plan?

thats actually a really good way to pay it back if you are uncertain about what you will do for a job. It gives you flexibility and in the end does not cost too much. Call up Sallie Mae and ask them the difference in total amount paid between standard and this method. My friend is using this Grad Plan and he said you don't pay much more over the life of the loan this way.

I think i am going to have to take out a loan to finish school. I have 3 more semesters ahead of me and I'm 22. I plan to head to the Financial aid office soon and get some info but does anyone else have tips/info/etc?

The priority deadline for filing Fafsa was March 1st, but ask them if you can still file one. You MIGHT still be able to and this is the way you would be able to get federal loans. Otherwise you will have to contact a private lender with a higher rate (citiassist is what I use, but a lot of student loan banks are out there)