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Tedscape – Job Hunting I owe a considerable sum to Sallie Mae for Stafford Loans.?

4 Comments (+add yours?)

1. GreenGal80
   Nov 24, 2009 @ 19:04:53

   Here’s a great online resource that tells you about consolidating both your federal and private student loans:
   http://www.studentfinancedomain.com/student_loans/college_student_loan_consolidation.aspx

2. NotAnyoneYouKnow
   Nov 24, 2009 @ 19:04:53

   Jen:

   The answer to this question depends on whether you are hoping to consolidate government loans, private loans, or a combination of the two.

   If you have government loans (Perkins, Stafford, PLUS), you can stop your search at the first consolidation lender that you’ll find – the federal government itself. Your government loans should be consolidated through the Direct Consolidation program, and no one else. You can find information on that program here: http://www.loanconsolidation.ed.gov/

   If your loans are private loans, that’s a whole different situation – the Department of Education will not consolidate private loans, nor can private loans and government loans be mixed together in a single consolidation package. You’ll have to turn to another lender to consolidate your private loans – and there are a very small handful of lenders accepting applications right now. Every one of the private loan consolidators offers variable interest rate loans only – there are no fixed-rate consolidation loans for student debt.

   Before you decide to consolidate – do your homework. Consolidation can be a useful borrowing tactic, but it is almost always a very expensive option. Consolidation lowers your monthly payment by extending the repayment period for your loan. If you know anything about how loans work, you’ll realize the downside of extending your payments – far more interest. Though your monthly payment will be lower, you will wind up paying back far more money than if you had simply continued with your original loans.

   When I say "far more", I mean thousands of dollars. Borrowers with extensive debts could find that a consolidation "costs" them $15,000, $30,000 or maybe even $75,000 more in exchange for a monthly payment that is a few hundred dollars less.

   For private loans, you’re really looking at a handful of companies, like Chase, Edvisors (Student Loan Consolidator), and Wells Fargo. Other major lenders, like Sallie Mae and Bank of America are not accepting applications for consolidation of private loans.

   Before consolidating, you should carefully evaluate alternative payment plans that may be available to you. If you contact your lender(s), they will be able to provide information on these programs. Find out about the income sensitive repayment plan, the income contingent repayment plan, and the income-based repayment plan, as well as graduated and extended plans. If you are experiencing short-term difficulty in repaying your loans, you may even qualify for a temporary forbearance or economic hardship deferment.

   Do your homework before you make any decision about refinancing your student loans. Start with your lender, but supplement your research with information like this: http://www.finaid.org/loans/troublerepayingdebt.phtml

   Good luck to you!

   Good luck to you!

3. EZ Writer
   Nov 24, 2009 @ 19:04:53

   You can only consolidate student loans once you have graduated and are already paying your loans or are within your 6 month grace period after finishing. If this is the case, you may want to wait a month or two, because rates are supposed to drop this summer and again next year.

   You can find a ton of good information at the link below.

   Good luck!

4. brighteyes
   Nov 24, 2009 @ 19:04:53

   There’s quite a bit to go over… I just found a link that included all the information you’ll need. Going with the wrong lender can cost you way too much, so be careful about student loan consolidation. You only get one shot!