Where do I go from here?
Honest and serious answers only please..... Thanks!
Lots of shady characters have entered the consolidation market recently, so it's important that you do some research first, don't succumb to the marketing gimmicks of some of these small, shady companies.
A couple tips:
1. Make sure you go with a *student* loan consolidator - not just a general debt consolidator. Student loans have special benefits that you would lose with generic debt consolidation.
2. You must consolidate your federal and private loans separately
3. Stick with a large, reputable lender who won't just "flip" your loan.
4. By law, lenders are required to use the same interest rate formula for Federal consolidation Loans. However, many lenders offer interest-rate reductions for paying on time or via direct debit. It is important to read the fine print and understand how you become qualified for or disqualified for a lender’s borrower benefits programs. Beyond savings, borrowers should consider customer service, flexible repayment options, online account access and applications, reputation and industry experience when selecting a lender.
Additionally, since you have both private and federal, it might benefit you to find a lender that can consolidate both - that way you can have one bill and one place to manage your account.
Sallie Mae has lots of info on consolidation - including FAQs and calculators that can help you see what your payment will be. http://www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/student_loan_consolidation.htm
Some information about student loan consolidation, which helped me:
http://pay-your-debts.com/category/Student-Loan-Consolidation.html http://answers.yahoo.com/question/accuse_write?qid=20070326165606AA2O8Ph&kid=PY1uAkf6OHNcq.VIffL1&s=comm&date=2007-05-18+03%3A35%3A11&.crumb=
Don't worry they'll find you........
They will find you, so don't worry about contacting them. About consolidation. It's like a gamble right now, I think interest rates are around 5.25 percent- I'm not sure, but what ever they are- if you consolidate- they will lock at that rate. When I did my undergraduate, I did a very stupid thing and consolidated my loans at 8 percent- a crazy rate. Luckly, I went to graduate school and the Fed reserve dropped the rates down to about 3 percent- and I mixed my new loans with the old ones to get a fixed rate at 4.25 %.
Now rates have gone somewhat higher, and are in an unstable period where people are questionining whether they will go up or go down in July- you can consolidate now- lock them in at this rate- or wait it out- which will mean you'll pay more right now- and maybe get them at a better rate or maybe get them at an even worst rate- but eventually you'll want to consolidate them- it makes life much easier.
So here very soon you'll get a ton of stuff (for the next 10 years in fact) about consolidation- and you really get to choose who you'll pay you're loan to. I have sallie may- one of the big loan people- and I love their online site- it's the best with loan calulators, and detailed lists of everything- maybe that will help as you decide.
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