Consolidating Student Loans while in school...

[aphex]

Both my lender AND my uni are sending email's telling us to consolidate our loans now before the rate goes up Jul 1st.... Problem is, you lose the 6-9 month grace period on those loans when you consolidate... Plus, i know consildation dosent look so hot on your credit (granted, i think student loans aren't held as bad a typical debt)

Good or bad idea? I have two more years left in school and my total debt will be over 100k.

 

[MikeyIs4Dcats]

Fatwallet finance...stat! Search for student loan

 

[rgwalt]

Are you ready to start paying on your loans now? If not, I wouldn't consolidate until your grace period is over, but that is just me.

R

 

[iversonyin]

Originally posted by: rgwalt
Are you ready to start paying on your loans now? If not, I wouldn't consolidate until your grace period is over, but that is just me.

R

The rate is damn low, like 2.895%. I would consolidate and lock in the rate

 

[MikeyIs4Dcats]

Originally posted by: rgwalt
Are you ready to start paying on your loans now? If not, I wouldn't consolidate until your grace period is over, but that is just me.

R

many programs will still give you the grace period IIRC

 

[rgwalt]

Originally posted by: MikeyIs4Dcats

Originally posted by: rgwalt
Are you ready to start paying on your loans now? If not, I wouldn't consolidate until your grace period is over, but that is just me.

R

many programs will still give you the grace period IIRC

Ah, I forgot to mention that I'm on the subsidized Stafford loan, so the feds are paying my interest while in school and for 6 months after I graduate. So, there is no benefit for me to consolidate now as my loans would start earning interest.

R

 

[dullard]

It depends on the exact circumstances. The important ones are (a) how much do you owe and (b) how far are you from graduation.

(A) Many people don't owe much. So the difference between consolidation and not may be <$1 per month. In that case, just don't worry about it. You'll be fine either way.

(B) How far are you from graduation. After consolidation, you may request a 6 month grace period if you are still in school. Thus if you are near graduation, you really don't give up anything. But if you still have many years left, you are probably better off taking the free interest now and pay a bit more later.

Consolidation of student loans has no significant impact on your credit.

 

[Sukhoi]

I just consolidated $11,620 of subsidized Stafford loans. I have a year left. Was I stupid?

 

[Rumpltzer]

Originally posted by: Sukhoi
I just consolidated $11,620 of subsidized Stafford loans. I have a year left. Was I stupid?

Do you have to start paying off your loans NOW? If so, can you afford to do that while in school?

 

[Mo0o]

I'm planning on consolidating after i get out of grad/med school. is this the right plan?

 

[Rumpltzer]

Originally posted by: iversonyin

Originally posted by: rgwalt
Are you ready to start paying on your loans now? If not, I wouldn't consolidate until your grace period is over, but that is just me.

R

The rate is damn low, like 2.895%. I would consolidate and lock in the rate

The consolidation locks in an average of your present (assumedly variable) rates. If all your loans are 2.895%, then that's what you're locking in. In my case, I had loans at all kinds of rates and locked in at 3.5% (which drops to 3.25% after a year of on-time payments).

I consolidated about a year ago, and I'm still getting official-looking letters from these consolidation places. Do your research. That FatWallet thread is a really, really excellent resource. Just read the first few pages and the last few pages and you'll be good.

 

[Jmman]

If you owe any significant amount, consolidate. My Stafford loans are at 2.77 percent, and the new rate as of Jul 1st will be 4.3 or something. That can possibly amount to thousands of extra dollars in interest if you have significant loans. Also, you still have until you finish school to start paying. You don't have to start paying immediately. Lastly, many lenders will still give you some kind of grace period to start paying after you graduate, and many lenders have different loan programs anyway that will base your initial payment on how much you make, etc. I wouldn't screw around and miss the deadline.

 

[mugs]

Does a student loan consolidation really look bad on your credit report?

 

[ElFenix]

looks like you can keep deferment and your 6 month grace period by refi'ing in school. i know what i'm doing today.

 

[Safeway]

I'm not sure.

 

[BurnItDwn]

All I've got to say is "Holy crap, your student loan is almost as big as my morgage!"

 

[HomeBrewerDude]

if you consolidate while you are enrolled FT, you must submit a waiver form. However, you can still apply for a deferment after you graduate.

 

[BMdoobieW]

I just don't understand student loan consolidation. I have been paying back my loans for two years now. How do I figure out if consolidation would help me? I need the basics...consolidation 101.

 

[HomeBrewerDude]

Originally posted by: BMdoobieW
I just don't understand student loan consolidation. I have been paying back my loans for two years now. How do I figure out if consolidation would help me? I need the basics...consolidation 101.

call up great lakes...they can tell you fo sure

 

[ElFenix]

Originally posted by: BMdoobieW
I just don't understand student loan consolidation. I have been paying back my loans for two years now. How do I figure out if consolidation would help me? I need the basics...consolidation 101.

you can't consolidate once you're in repayment, afaik.


according to the website linked from one of the fatwallet threads (not the main one, but one on this specific topic) you can defer repayment while in school as long as you're FT, the feds still pay the interest while you're in school, and, depending on loan type, you keep your 6 month grace period when your loan goes into repayment.