Last day, do it now

[oogabooga]

What's a good rate to consolodate at?

My schools alumni assoc has offered something at 4.7% Not sure if it's a good deal, or not.

 

[dullard]

Originally posted by: oogabooga
What's a good rate to consolodate at?

My schools alumni assoc has offered something at 4.7% Not sure if it's a good deal, or not.

The rate is set by law. All places are offering 4.7% now and 6.543% starting next week.

Some companies have a few minimal discounts however. Common discounts are for paying on time or for paying electronically. These discounts vary slightly from companies to companies. Thus, not all companies are the same. But unless you owe a massive amount, the difference is usually small.

 

[mugs]

Sucks for my brother who will be graduating in 3 years with $80k in loans. I consolidated mine last year.

 

[purbeast0]

I consolidated I think last year ... it's like 2.75% or something.

 

[imported_LoKe]

:thumbsup:

Dullard for Elite! Wait...

 

[dmcowen674]

One other thing.

You have to have a balance of more than $5,000 to consolidate.

 

[manohartvs]

Ok...frankly speaking, I dont know what loan consolidation means.
Can I apply for a loan today and hope to get the older rates?
Somebody help!

 

[JS80]

i locked in at 2.37% in 2004

 

[imported_LoKe]

Originally posted by: manohartvs
Ok...frankly speaking, I dont know what loan consolidation means.
Can I apply for a loan today and hope to get the older rates?
Somebody help!

I'm not sure on the process, but you'd have to apply for, and be accept for a sutend loan. Then, if you have a balance exceeding $5,000, you can consolidate and save yourself some money. There's only one week remaining, so I think it's too late.

 

[dullard]

Originally posted by: manohartvs
Ok...frankly speaking, I dont know what loan consolidation means.
Can I apply for a loan today and hope to get the older rates?
Somebody help!

This is for people with student loans. Each semester you might get a student loan. In fact, you might get multiple student loans each semester. By the time you graduated, you could easilly have a dozen or more loans each at a different interest rate and each with different loan terms. It would be a hastle, a headache, and cost money in stamps and envelopes for everyone involved. So the government wrote laws allowing all of these loans to be lumped into one loan - a consolidated loan.

The consolidated loan interest rate is set by that law. The way it is calculated just happens to give a massive interest rate increase next week. You cannot apply for a new loan now and hope to get the old rate. You can consolidate existing loans now to get the old rate.

 

[necine]

Originally posted by: dullard

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.

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.

Thanks for the information. I don't even know why i'd consolidate. I have the standard government loans. I will probably have about 10k by the time I'm finished my undergrad.

This is for people with sallie mae and stuff right??

They are all managed by Direct Loans. I get a statement every quarter.

 

[SirChadwick]

Thanks for the information. I don't even know why i'd consolidate. I have the standard government loans. I will probably have about 10k by the time I'm finished my undergrad.

Consolidate as long as your over $5,000 in loans when you graduate. You'll have to wait down the road for the upcoming interest rate if you still have a while left in school. And yes be sure to ask for deferrance so you don't have to pay back immediately... but have the 6 mo. grace period.

 

[sygyzy]

This might sound like a silly question, but can you "consolidate" if all your loans are from one place? I mean technically I took out dozens of loans, but they are all one type (I believe Stafford or Direct Loan, not sure of the terminology). As far as the govt. is concerned, I write a single check and they subtract it from a single balance. So in this case, is it possible for me to "consolidate." I thought the way most consolidation services worked was they took your smallest interest amount and locked that in, applying it to all your (hopefully higher rate loans). In my case, I think all my loans across the years have a single rate.

I don't have loans from banks, or 10 other sources. It's all from the federal government.

 

[RMSistight]

Originally posted by: Tiamat
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.

AMEN. I had to decide last year and now if I wanted to consolidate. But just like you, I'd rather take the six month grace period then to start paying immediately after I graduate. When I graduate next spring, I think I'm going to owe just a little over $22k. I can pay that off in a year if I really wanted since I already have job offers lined up for me.

 

[Gunslinger08]

Originally posted by: sygyzy
This might sound like a silly question, but can you "consolidate" if all your loans are from one place? I mean technically I took out dozens of loans, but they are all one type (I believe Stafford or Direct Loan, not sure of the terminology). As far as the govt. is concerned, I write a single check and they subtract it from a single balance. So in this case, is it possible for me to "consolidate." I thought the way most consolidation services worked was they took your smallest interest amount and locked that in, applying it to all your (hopefully higher rate loans). In my case, I think all my loans across the years have a single rate.

I don't have loans from banks, or 10 other sources. It's all from the federal government.

Yes, you can consolidate if you only have one lender. About 2 weeks ago you couldn't, but the government repealed the legislation.

 

[sygyzy]

Originally posted by: joshsquall

Originally posted by: sygyzy
This might sound like a silly question, but can you "consolidate" if all your loans are from one place? I mean technically I took out dozens of loans, but they are all one type (I believe Stafford or Direct Loan, not sure of the terminology). As far as the govt. is concerned, I write a single check and they subtract it from a single balance. So in this case, is it possible for me to "consolidate." I thought the way most consolidation services worked was they took your smallest interest amount and locked that in, applying it to all your (hopefully higher rate loans). In my case, I think all my loans across the years have a single rate.

I don't have loans from banks, or 10 other sources. It's all from the federal government.

Yes, you can consolidate if you only have one lender. About 2 weeks ago you couldn't, but the government repealed the legislation.

josh - This is good news. Where can I find out more about this?

 

[RMSistight]

Originally posted by: SirChadwick

Thanks for the information. I don't even know why i'd consolidate. I have the standard government loans. I will probably have about 10k by the time I'm finished my undergrad.

Consolidate as long as your over $5,000 in loans when you graduate. You'll have to wait down the road for the upcoming interest rate if you still have a while left in school. And yes be sure to ask for deferrance so you don't have to pay back immediately... but have the 6 mo. grace period.

Most banks do not offer you a 6 month grace period after you graduate. You have to pay immediately after you graduate. I was thinking about consolidating myself last year but the bank would give me a deferment but not a 6 month grace period as well. So I opted not to consolidate.

 

[Gunslinger08]

Originally posted by: sygyzy

Originally posted by: joshsquall

Originally posted by: sygyzy
This might sound like a silly question, but can you "consolidate" if all your loans are from one place? I mean technically I took out dozens of loans, but they are all one type (I believe Stafford or Direct Loan, not sure of the terminology). As far as the govt. is concerned, I write a single check and they subtract it from a single balance. So in this case, is it possible for me to "consolidate." I thought the way most consolidation services worked was they took your smallest interest amount and locked that in, applying it to all your (hopefully higher rate loans). In my case, I think all my loans across the years have a single rate.

I don't have loans from banks, or 10 other sources. It's all from the federal government.

Yes, you can consolidate if you only have one lender. About 2 weeks ago you couldn't, but the government repealed the legislation.

josh - This is good news. Where can I find out more about this?

I just consolidated with ScholarPoint. I didn't even have to type in my loan information. Just fill out the form and they look up your outstanding loans.

 

[oogabooga]

bump as the day approaches

Consolidating means you don't get the 6-month grace? Ruhroh... That'll make it tougher for me to decide =\ better read through that fine print again.

 

[Jassi]

Originally posted by: oogabooga
bump as the day approaches

Consolidating means you don't get the 6-month grace? Ruhroh... That'll make it tougher for me to decide =\ better read through that fine print again.

I spoke my my schools FinAid counselor and I explained to her that I will graduate in the Fall with a Masters and about 30k debt; the impression that she gave me is that if I consolidate with Direct Loans (some link that the FinAid department sent out), its a much better deal. I think I am locked in with the government and I just finished my application. I am just glad that my financial situation is much better than it was about a year ago and I hope that losing the grace period (need to check up on that as well) won't be much of an issue.

 

[dullard]

Originally posted by: oogabooga
bump as the day approaches

Consolidating means you don't get the 6-month grace? Ruhroh... That'll make it tougher for me to decide =\ better read through that fine print again.

Thanks for the bump. Yes, you lose your grace period. But if you do it while in your grace period you get an additional large interest rate drop. In most cases, it'll pay off big to do it now than to wait.

 

[iotone]

bump for all of us in debt.

am i correct in saying i can get the rate so long as i get my app in by tomorrow?

 

[oddyager]

I came out of college saddled with a $60K debt and there was no way I was going to pay a loan with an unfixed interest rate hovering over 7.5% over the 10-15 years. I ended up taking out a home equity loan (through my parents) and paid off the principal with that. For now at least it's much cheaper for me to pay this off (interest rates were at least half when we took it out).

 

[dullard]

Originally posted by: iotone
bump for all of us in debt.

am i correct in saying i can get the rate so long as i get my app in by tomorrow?

I think most companies will let you in the good rate if you start the application by tomorrow. I don't think you have to finish it by then - but I could be wrong for some of the consolidation companies.

 

[Anubis]

Originally posted by: dullard

Originally posted by: iotone
bump for all of us in debt.

am i correct in saying i can get the rate so long as i get my app in by tomorrow?

I think most companies will let you in the good rate if you start the application by tomorrow. I don't think you have to finish it by then - but I could be wrong for some of the consolidation companies.

i asked its gotta be in by the end of the day on friday