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Last day, do it now

dullard

dullard

Elite Member
Consolidate now if you have graduated and haven't consolidated or if you are near graduation. Consider consolidation if you are still a student and far from graduation - but there are drawbacks.

Interest rates on student loans are going up 1.84%, the second largest increase in history.

[*]Someone with $10,000 in student loans, will pay ~$1100 more in interest if he/she consolidates after July 1st. *
[*]Someone owing $100,000 in student loans will pay ~$11,000 more in interest if he/she delays consolidating past July 1st. *

You have less than one week to save all this money.


* Numbers compare consolidation just before to just after the July 1, 2006 deadline. If you don't consolidate at all, you would probably pay even more than this.
 
Originally posted by: ViviTheMage
who says?
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The student loan agreement you signed says this. There are dozens of places that consolidate, and I'm not going to support any particular one. But this link gives the details. 1.84% increase by July 1st.
 
Originally posted by: jhayx7
What is the current rate for student loans?
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Depends on the type and when you graduate.

Stafford loans while still in grace period: 4.7% -> 6.543%.
Stafford Loans in repayment: 5.3% -> 7.143%
PLUS loans: 6.1% -> 7.943%
 
Originally posted by: jndietz
Well, it's a good thing I don't have student loans, then... 🙂
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I'm ticked that I didn't get more student loans. Best deal in the world (unless you can get free money). They'll end up saving me more in interest than the loan amount was. Of course, I graduated and consolidated 2 years ago, so things are a bit different now.
 
Originally posted by: dullard
Originally posted by: jhayx7
What is the current rate for student loans?
Click to expand...
Depends on the type and when you graduate.

Stafford loans while still in grace period: 4.7% -> 6.543%.
Stafford Loans in repayment: 5.3% -> 7.143%
PLUS lonas: 6.1% -> 7.943%
Click to expand...

YIKES! How can a poor student afford college these days? I am lucky, Tuition Reimbursement FTW!
 
Consolidation is a good idea for people swimming in loans.

I think ill keep my 6 month grace period. I value that over any percentage difference as Ill just pay off my loans in one lump sum anyways. Might as well earn as much ING interest as possible before the gov't quits paying off the interest on the loans for me 😛

I feel bad for my roommate though, he has to repay 130k$ in student loans. 🙁
 
Originally posted by: Tiamat
I think ill keep my 6 month grace period. I value that over any percentage difference as Ill just pay off my loans in one lump sum anyways. Might as well earn as much ING interest as possible before the gov't quits paying off the interest on the loans for me
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Here is another way to look at it. Now that you are graduated, and probably have a good job, are you possibly going to buy a car or a house? If so, consolidating at 4.7% is a heck of a lot cheaper than getting a mortage or car loan near 7%.

Prepaying student loans is in most cases a very bad idea. Of course, if you don't plan on getting a car loan or house mortgage anytime soon, then prepay them.
 
I pay for college out of my pocket. It's really incredible how expensive it is...but someday I'm going to look back and be thankful I don't have giant student loan bills every month when I'm working 9-5 at a dead end job and pulling in a whopping $40,000 a year while some truck driver has been making more than that since he was 22.
 
Originally posted by: BlancoNino
I pay for college out of my pocket. It's really incredible how expensive it is...but someday I'm going to look back and be thankful I don't have giant student loan bills every month when I'm working 9-5 at a dead end job and pulling in a whopping $40,000 a year while some truck driver has been making more than that since he was 22.
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Good luck to you. If done correctly, you could squeeze out a small financial win that way. If not, I've seen big financial disasters.
 
Originally posted by: dullard
Originally posted by: BlancoNino
I pay for college out of my pocket. It's really incredible how expensive it is...but someday I'm going to look back and be thankful I don't have giant student loan bills every month when I'm working 9-5 at a dead end job and pulling in a whopping $40,000 a year while some truck driver has been making more than that since he was 22.
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Good luck to you. If done correctly, you could squeeze out a small financial win that way. If not, I've seen big financial disasters.
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😀
 
Originally posted by: BlancoNino
I pay for college out of my pocket. It's really incredible how expensive it is...but someday I'm going to look back and be thankful I don't have giant student loan bills every month when I'm working 9-5 at a dead end job and pulling in a whopping $40,000 a year while some truck driver has been making more than that since he was 22.
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Out of your pocket? or out of your parents pocket?
 
Originally posted by: BlancoNino
I pay for college out of my pocket. It's really incredible how expensive it is...but someday I'm going to look back and be thankful I don't have giant student loan bills every month when I'm working 9-5 at a dead end job and pulling in a whopping $40,000 a year while some truck driver has been making more than that since he was 22.
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You're paying to be a failure?!
 
I dunno, I got maybe 12-14k in student loans so far, about 2 years of college left, but in spite of all the notifications/spam I've been receiving about consolidation, I guess my parents have talked to their financial advisor and he hasn't recommended doing any of that. My parents have been paying the interest every 6 months or so but of course the principal won't be paid off till 2 years when I graduate and hopefully land a decent job. This is what the advisor says... I dunno, should I worry about consolidating?
 
Originally posted by: Doboji
Originally posted by: BlancoNino
I pay for college out of my pocket. It's really incredible how expensive it is...but someday I'm going to look back and be thankful I don't have giant student loan bills every month when I'm working 9-5 at a dead end job and pulling in a whopping $40,000 a year while some truck driver has been making more than that since he was 22.
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Out of your pocket? or out of your parents pocket?
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Mine.
 
Originally posted by: iRONic
Originally posted by: BlancoNino
I pay for college out of my pocket. It's really incredible how expensive it is...but someday I'm going to look back and be thankful I don't have giant student loan bills every month when I'm working 9-5 at a dead end job and pulling in a whopping $40,000 a year while some truck driver has been making more than that since he was 22.
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You're paying to be a failure?!
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lol maybe. I'm just pessimistic I guess. If I were going to school to become a teacher I would making around that (maybe less). Are you saying teachers are failures?
 
Originally posted by: duragezic
I dunno, I got maybe 12-14k in student loans so far, about 2 years of college left, but in spite of all the notifications/spam I've been receiving about consolidation, I guess my parents have talked to their financial advisor and he hasn't recommended doing any of that. My parents have been paying the interest every 6 months or so but of course the principal won't be paid off till 2 years when I graduate and hopefully land a decent job. This is what the advisor says... I dunno, should I worry about consolidating?
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It is certainly worth considering. But consolidating while in school has a few drawbacks and restrictions. Only you can decide if the benefits outweigh the drawbacks.
 
Why would I consolidate a loan that I'm not even paying yet (still in college). I owe about 4,300. I have about 2 years left in school.
 
Originally posted by: necine
Why would I consolidate a loan that I'm not even paying yet (still in college). I owe about 4,300. I have about 2 years left in school.
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This thread is mostly for those who have just graduated or who are just about to graduate. You are not in that category, thus you have drawbacks to consider. You have to weigh the benefits vs. the drawbacks.

[*]If you consolidate today using the standard plan, you'll pay a total of $5397 on that loan ($4300 + $1097 interest).
[*]If you consolidate in two years, and assuming interest rates are the same, you'll pay a total of $5870.
[*]If you consolidate in two years, and assuming interest rates keep rising like they have been, you'll pay a total of ~$6329.

Thus you would potentially save $500 to $1000 in interest. But you have drawbacks. The biggest is that you'll have to start making payments ($45/month) now (or ask for a deferrence). There may be other drawbacks too depending on your situation.

Edit: you might need $5000+ to consolidate. Thanks dmcowen674 for the clairification.
 
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