I recently graduated and have numerous, federal & private loans. What is the best place to concolidate with?

Question

Hi there,

I recently graduated from college and now have numerous, federal & private loans. I keep getting a huge amount of "consolidate" fliers in the mail which has made it difficult to decide. I really want to consolidate, because I would litterarely not be able to afford to pay the minimum to each creditor seperately. From your experience, what is the best place to use, to consolidate my federal and private loans? I understand it would probably be best to consolidate my federal loans seperately from my private ones. Please help. Thank you!

Dahni

Answer 1

Definitely keep your federal loans separate from your private loans. A Federal Consolidation Loan can only be comprised of *federal* loans, so if you get a letter from a company offering to consolidate private + federal, don't take the bait! You could end up with a Private Consolidation Loan with lousy terms and none of the security of the Federal Consolidation Loan program.

Indeed, students of all sorts (including students who haven't even graduated) are getting tons of fliers about consolidation. Some are from legitimate companies and some, unfortunately, are not. When picking a consolidation lender, it's good to pay attention to the interest rate offered -- but this, by far, is not the only indication of a good lender. In fact, some of the companies offering rock-bottom rates are the questionable ones that you want to avoid! Instead, ask yourself the following:

* How long has the company been in business? This is a good indication of the longevity of the corporation. Student loan companies come and go and, when they go, they have to sell your loans to someone. If this occurs, you won't get a say in the matter and could end up with a less-than-ideal lender. In some cases, when these sales are made, students aren't properly notified of the sale, which has led to some students missing payments... which can, in turn, lead to delinquency and default.

* What is the company's website like? Not only is a strong, detailed website a sign of a good lender, but it can also be critical in helping you keep track of your due dates, look up information during tax season, and apply for deferments. This is also a good way to spot a "scam"-type company. If you log onto the website and the first thing you see if an application form asking for your social security number, RUN. A good company will give you ample opportunity to learn about the terms and conditions of their loan before you apply.

*What is the lender's reputation? What's their customer service center like? Now, to be fair, now may not be the best time to call up each company to gauge their customer service. During the last week in June, all of those companies will be swamped with calls from borrowers consolidating last minute. If you have a chance, talk to your friends, family, and financial aid office to see who they recommend.

For federal consolidation, Sallie Mae and Citibank are the #1 and #2 consolidation lenders (respectively) in existence right now -- and for good reason. Their loan processes are streamlined, the websites give you everything you need to manage your loans from disbursement to repayment, and they are leaders in their industry. I would highly recommend consolidating with either of these comapnies. In fact, I won't name anyone else because I don't think the others hold a candle to these two. But if you're curious what's out there, you can check out FinAid.org's list of the largest consolidation lenders: http://www.finaid.org/loans/biglenders.phtml

Sallie Mae also offers private consolidation, so you could direct all your private loan volume their way, too, and they might be able to bill you on a single bill for all your loans. Although I generally recommend Sallie Mae above the others, I acknowledge that, unlike with Federal consolidation, private consolidation interest rates will vary -- so it might be worth shopping around. Other lenders who offer private consolidation include...
Key Bank: http://www.key.com/html/H-1.39.b.html
Education Finance Partners: http://www.educationfinancepartners.com/loans_privateconsolidationloan.html
Nelnet: http://www.consolidation.nelnet.net/PvtDescription.asp
NextStudent: http://www.nextstudent.com/private-consolidation-loans/private-consolidation.asp
SunTrust: http://www.suntrusteducation.com/debtcons/privcons.asp
Wells Fargo: https://www.wellsfargo.com/student/loans/repayment/consolidation/consolidator.jhtml

Finally, if your loan volume is feeling a little hefty, here's a little tip: the Federal Consolidation Application has two loan sections: the first section will ask you what loans you want to consolidate. Simple, right? Just put down all the loans you want to include in that particular consolidation. The *second* section will ask you what loans you *don't* want to consolidate. While this might seem like an odd question, use this section to list any other student loans that you owe, including your private loans. Why is this important? Well, as you may know, Consolidation Loan repayment terms can vary anywhere from 10 years to 30 years. Your lender will determine *your* repayment period based on how much student loan debt you owe in total. If you tell them about your private loans, they will take them into account and will likely give you longer to pay off your federal loans. Longer repayment period = lower monthly payment.

Answer 2

Personally, I would choose a better school. If your school can't give you enough aid to fund with Stafford loans only... honestly, it's not a very good school. Don't resort to private loans... private loans are evil. You will need a cosigner, your parents. Jeopardizing both your credit if something terrible were to happen. You should want to have your parents do the PLUS loan. Your parents are responsible for paying this back, not you. Private loans have variable interest rates. Ever year of the sub prime mortgage crisis? This is caused by folks taking out variable rate loans who didn't know any better. Private loans have MUCH longer payment terms.. so even if the rates are comparable... over the span of paying if off for 25 years instead of 10, they actually get MORE of your money.... and the delayed payments option at 8% just compounds the interest and makes it worse.

Answer 3

I consolidated my loans with Citibank. I have a really good rate...something like 2.8% APR.

Answer 4

I consolidated with AES.

http://www.aessuccess.org

Answer 5

Your spelling is awful. How about going back to Spelling School to 'concolidate'?

Answer 6

Do it this week because on July 1st, rates go up!!

Answer 7

a company called clc is great

Answer 8

PRISON