Consolidating School Loans and Private School Loans?

Stiganator

Platinum Member
Oct 14, 2001
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I was just curious is there a way I can consolidate all my loans at once? So I have about 15K federal and 15K from a Wells Fargo Educational Loan. Can I consolidate them all or on the federal loans?
 

AndrewR

Lifer
Oct 9, 1999
11,157
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Originally posted by: BigJ
Originally posted by: AndrewR
You cannot consolidate private loans. Period.

Sorry, but you're wrong.

http://www.finaid.org/loans/privateconsolidation.phtml

Commercial refinancing and government-regulated consolidation are two entirely different things. You cannot consolidate private loans, using the standard definition of consolidation with regard to educational loans. Every week (for the last 6-7 years or so) I receive something in the mail regarding student loan consolidation. Not a single one of them has EVER mentioned anything about private educational loans.

So, no, I'm not wrong.
 

AndrewR

Lifer
Oct 9, 1999
11,157
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Originally posted by: Aimster
I would wait until you consolidate. Interest rates SUCK now.

Agreed. There's a recession looming in the next year or two or three. Wait until the Fed starts dropping the rates before locking yourself in. You only get one chance -- mine are at 4%.
 

Aimster

Lifer
Jan 5, 2003
16,129
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Wait so can I consolidate my salliemae private loan in the future or not?

"confused"
 

BigJ

Lifer
Nov 18, 2001
21,335
1
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Originally posted by: AndrewR
Originally posted by: BigJ
Originally posted by: AndrewR
You cannot consolidate private loans. Period.

Sorry, but you're wrong.

http://www.finaid.org/loans/privateconsolidation.phtml

Commercial refinancing and government-regulated consolidation are two entirely different things. You cannot consolidate private loans, using the standard definition of consolidation with regard to educational loans. Every week (for the last 6-7 years or so) I receive something in the mail regarding student loan consolidation. Not a single one of them has EVER mentioned anything about private educational loans.

So, no, I'm not wrong.

Listen, I don't want to get into it really, but yes you are wrong.

Saying that you cannot consolidate private loans was plain wrong. Considering that federal loan refinancing is specifically related to the low interest rates you get for federal student loans, of course you wouldn't be able to lock in private loans (that are at a considerably higher rate) at the special low federal rates.

Maybe you have a special idea of what debt consolidation is, but that is all you're doing with the federal and private loans. With federal loan consolidation, you get to consolidate at the special low rates that apply to federal loans. With private loan consolidation, you consolidate into a rate that is typical either the prime or LIBOR + anywhere from 0.00% - 6%.
 

Stiganator

Platinum Member
Oct 14, 2001
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The wells fargo 15K that I have is 10% and its killing me, should I consolidate that? Or I guess it would be refinancing through salliemae or some such for a 6% loan?