Private College Student Loan

Should I consolidate my federal student loans?

I have undergraduate and graduate loans with interest rates over 8.02%. The amount of the loans are also significant. I know I missed the deadline for the rates at the end of June. But should I consolidate at this time? I am having a difficult time finding permanent employemnt also. Are there deferments/forbearrances with consolidation? Also, which are the best consolidation loan bearers (hope that's the correct term) to choose.? Thanks all for any assistance provided.

Public Comments

1. You should consolidate your loans. As long as the new rate is lower than any of the combined rates. You can call the student loan program and ask for a deferment. You will have to pay for the interest but the rest of the payment will be deferred. Register your resume with all the online job sites. It may help!
2. You should absolutely consolidate your student loans because it will not only lower your interest rates, but it will also make it easier to pay them. You won't have to hassle with writing different checks to different lenders. Also, if you decide to consolidate your loans you should be eligible to defer or forbear them. You can read more about loan consolidation here: http://www.studentfinancedomain.com/student_loans/college_student_loan_consolidation.aspx Here are a few good student loan consolidation companies: http://www.loanapprovaldirect.com/ http://www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/consolidate_student_loans.htm http://www.nextstudent.com/ http://www.debtconsolidation.com/ Hope this helps!
3. Yes you should definitely consolidate. Shop around because you should be able to find a lender who allows deferments/forbearances with your loan. Keep in mind though that interest will add up on your deferments so start paying as soon as possible. Here are a few sites I'd recommend: http://financialaid.com - student loans and consolidations http://finfo.com - get up to four competing offers, no obligation http://mytuition.com - student loans and consolidations http://salliemae.com - large student lender You should also talk to one of your existing lenders. They might consolidate loans and would probably be more willing to provide you with favorable terms. Good luck!
4. you should consolidate your loans. the interest rate actually gets rounded up to the nearest 1/8th of a % then becomes a fixed rate. if all your loans are at the 8.02, your new rate would be 8.125% as far as reducing the rate, you can do that with incentives. some companies offer better incentives then others, but can sell your loans and you lose the incentives if that happens. your monthly payments would be greatly reduced, because the term gets extended based off your loan amount, whereas right now you are on a 10-year term. that may be why your payments are high. as far as deferments, you only accrue interest on your UNSUBSIDIZED portions. every company has to offer them as it is regulated by the government (but it is up to them to offer forbearances, which you accrue interest on everything, but your payments are postponed). you may want to ask your current lender for an "economic hardship deferment". to be eligible, take your current monthly payment from your student loans (just your federal, this would not include your private loans if you have any), then multiply it by 5. if the result of that is more than you make before taxes monthly, you are eligible for the deferment. also, if you work less than 30 hours per week, but are actively seeking employment in any field, that would qualify you for the unemployment deferment- where your subsidized interest does not accrue. the forbearance is there if you dont meet those requirements, but still need to postpone your payments. if you have more questions, feel free to message me, this is what i do. good luck either way!
5. When you consolidate your student loans, your new interest rate will consist of a weighted average of your current loans. What that means is basically your base interest rate stays the same. This is the same no matter what company you decide to consolidate with. The difference between the student lending companies comes in their benefit packages. Give the number below a call. They can discuss the different benefit programs with you. You could even qualify for a cash rebate through them. 877-490-6635
6. You could try to consolidate next year and lock in a low interest rate. However, that may not work too well, considering that is quite a ways off. My loans ended up being sold to sallie mae, and they work with me really well. You may want to check them out. Good luck.