Student loan consolidation

[dullard]

My wife just recently graduated and I will graduate in December. We need to consolidate our student loans (3 types). We are being bombarded with telemarketing that won't give you any useful information until you sign up. We have also gotten a few useful mailings about companies with student loan consolidation. Each sounds the same but there are very subtle differences which end up meaning a large difference in the total amount paid. So I want to find the best company possible. Do any of you have recommendations (or bad stories of companies to avoid)?

 

[MercenaryForHire]

*paging RossMAN, Master of All that is Debt*

IIRC, there's a few good places that should consolidate with a low fee and give you 3.75%. I might be totally off my rocker though.

- M4H

 

[BigSmooth]

I did it through the government's Direct Loan service. http://www.loanconsolidation.ed.gov/

 

[RossMAN]

Originally posted by: MercenaryForHire
*paging RossMAN, Master of All that is Debt*

Hehe that's definitely sig quality material

Unfortunately I don't have experience with student loans (paid my own way through college and used free pell grants/scholarships).

Hopefully someone who is knowledgeable in this area can toss in their two cents.

 

[dullard]

Originally posted by: MercenaryForHire
*paging RossMAN, Master of All that is Debt*

IIRC, there's a few good places that should consolidate with a low fee and give you 3.75%. I might be totally off my rocker though.

- M4H

Well you are a bit off. Currently there is no fee, and it starts at 2.8xx% dropping to 1.8xx% after Y number of months. The Y is what varies from company to company.

I'm looking to take that 1.8% fixed loan and turn around and invest it earning a nice profit! Even my checking account earns 2.5% (small bank which stupidly fixed it years ago when interest rates were high).

 

[IceBlue]

dullard-

One thing to think about, even though it is a little morbid, is NOT consolidating both spouses' loans into a single loan for both of you.

In the case of one spouse dying unexpectedly and the loans are jointly consolidated, the survivor is responsible for the entire amount of the new loan.

However, if each spouse consolidates seperately, (leaving 2 loans) upon death that person's loan balance is forgiven, leaving only the surviving spouses' loan to be repaid. This is worth the hassle of writing an extra check each month. You could get automatic payments setup to avoid this.

This was a big deal for my wife and I when we consolidated (many thousands of dollars).

This was for a Federal Direct Loan consolidation, so just check out the details for your consolidation company.

Hope this helps someone out there!

-Ice

 

[dullard]

Originally posted by: IceBlue
One thing to think about, even though it is a little morbid, is NOT consolidating both spouses' loans into a single loan for both of you.

I know what you are talking about, but it isn't an option for us. We are both under the minimum limit ($10k). So without combining them we cannot qualify for consolidation loans.

 

[dxkj]

I've been doing the same thing recently (you can do a search for a little bit of information)

Sallie Mae is who we are going through. Choices were consolidate Perkins and STafford, or just Stafford. Stafford ended up being 2.87% - .25 for direct payment, - 1% after 4 years of ontime. ends up being 1.62. Anything below 2 is good.

 

[SunnyD]

Go DIRECTLY with the government Student Loan agency, not with any private finance company or anyone.

Do not trust anyone else.