pandora sugarland ([info]mystic_toxicity) wrote in [info]twin_cities,
@ 2006-05-16 13:40:00
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student loan consolidation
hi--i'm wondering if anyone has had a lot of success with a loan consolidation company for student loans in particular. i see they are raising rates again in july and i feel like i need to get something taken care of, but i get a lot of offers and i don't know which one is best.

any recommendations would be much appreciated!

EDIT: thanks to those of you who have offered some suggestions. the majority of my loans are through direct loans. i have no private loans. also, i am still in deferment right now because i'm in grad school. i'm also slightly concerned because i have money from teach for america that i can use to pay off loans, but i don't know how that works once i consolidate. i suppose i ought to speak with someone in TFA for more clarification there...

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[info]billyoung
2006-05-16 07:54 pm UTC (link)
You got to be careful with those. Some are major scams that leave you worse off than before.

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[info]ilovekatamari
2006-05-16 08:43 pm UTC (link)
Yes, for this reason, when I consolidated mine, I just went to the source. My loans were through Direct Loans, aka the Department of Education, so I just talked to them about consolidation, and they hooked me up. I don't know if I got the best deal out there, but my payments went from $200/month to $96/month, so in the here and now, my life is a lot easier.

Good luck!

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[info]kitchenwitch
2006-05-16 08:40 pm UTC (link)
Where are your loans from? I had most of mine (except the government ones) through Wells Fargo, so I just consolidated through there. Your best bet is probably go with an established bank; the rates are still low and they'll do things like knock off 0.25% of interest if you do automatic withdrawal.

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[info]evilprettykitty
2006-05-16 08:40 pm UTC (link)
I consolidated through Sallie Mae and they let me pick a larger dollar a mount later when I was making more moeny an could afford to send more.

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[info]bedizened
2006-05-16 09:20 pm UTC (link)
For immediate post-undergrad, I consolidated with Sallie Mae, becuase if you consolidate with them within six months of graduation you can lock in your interest rate at 3% or so (depending on the prime rate). It's honestly the better option. Eventually I switched my private loan to a Capitol One account that offered 2.99% until 2007, which then changes to a fixed 4.99% for the remaining life of the loan.

Point being, I suggest consolidate with Sallie Mae, but always be on the lookout for good interest rates with other companies.

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[info]finabear
2006-05-16 11:07 pm UTC (link)
This might be a stupid question....but can you consolidate if you only have one loan? Mine is also a direct loan... I've always wondered if I could lock my rate in, but I'm too scared to get scammed.

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[info]soigneusement
2006-05-17 01:57 am UTC (link)
I had only one loan (through Direct Loans) and I consolidated. It locked in the rate for the term of the loan, which was a good idea last year when the rates were super low and slated to increase. Definitely go straight to the source (ie: the federal government). Other loan consolidation companies can cost you lots more than you should pay.

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[info]finabear
2006-05-17 09:52 pm UTC (link)
thank you sooo much for info!!!

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[info]froggie444
2006-05-16 11:07 pm UTC (link)
One thing to look for when consolidating your loans is if you are still in school are they going to allow you too keep your 6 month grace period. Some companies will not allow you keep this grace period if you consoladate while still in school. Just something to keep in mind.

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[info]ailla
2006-05-20 04:19 pm UTC (link)
I'm a fin aid counselor and this is what I usually tell our students, there is a single holder rule, meaning if you've borrowed with one lender, you need to consolidate with that same lender. If you've used multiple lenders, you can choose anyone to consolidate with. Generally the "generic" type of solicitation you get in the mail is something you want to avoid. With Direct Lending, you'll need to contact the Dept of Ed. The one downfall of consolidating is that you will most likely loose your 6-month grace period after you are finished with school, but not necessarily, the key is to talk to your lender directly. Consolidating a Perkins loan too? That brings up some other issues, depending on the field you're going into, you could loose some loan cancellation benefits with the Perkins...if you're going to consolidate, start the process now because the closer we get to July 1, the harder it is to reach lenders as they get bogged down with requests, from hearing students experiences. good luck!

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