2006-06-29 18:03:45 · 8 answers · asked by trice c 1 in Education & Reference ➔ Financial Aid
Can i still qualify for loan reduction based on school district?
2006-06-29 18:09:39 · update #1
When you consolidate a student loan you no longer qualify for the Teacher Loan forgiveness or Nursing Loan forgiveness programs. So yes this a drawback. It would be a good idea to calculate your interest savings of consolidation for the 5 years you are required to work & pay on your loan to qualify for the program versus taking what portion of your loans that will be left at that time that will qualify for the loan forgiveness.
If you choose to consolidate:
The consolidation of loans allows you to lock the current interest rate in, otherwise the rate will continue to fluctuate as the economy does. Rates are set to rise on July1 to 6.54% for Stafford Loans if you are currently in school/grace period and to 7.14% for those of you in repayment. Right now rates are at 4.7% for in-school/grace and 5.3% for repayment. Consolidation will round your interest to the nearest 1/8 percent so in-school/grace consolidated rate will be 4.75% and repayment rate will be 5.375% (this is for loans borrowed after 1996, rates are slightly higher on loans borrowed prior to fall of 1996).
Repayment will also allow you to extend your repayment out longer than 10 years, lowering your monthly payment. Because of the large jump in interest rates it is highly recommend that students consolidate their loans by the end of the day today.
The Perkins loan may also be consolidated, it has a fixed (or locked-in) interest rate of 5%. So many students will opt to leave that loan out of the consolidation if the are still in-school so their interest rate isn't made higher in the weighted average of loans and their interest rates during the consolidation process. You can run examples using loan consolidation calculators at www.finaid.org.
To find a listing of all your loans you can use the National Student Loan Database www.nslds.ed.gov. You will need to know your Dept of Ed PIN to access this info. To retrieve your PIN you can request a duplicate be emailed to you within 4 hours at www.pin.ed.gov
You do have the choice of choosing another lender to consolidate with and their are many to choose from. And it is typically easiest to go with your current lender.
Many people on this site are recommending Direct loans. They are reputiable but many other are as well. To consolidate with Direct Loans you can call their phone number 1-800-557-7392 or complete an application on their website www.loanconsolidation.ed.gov. To consolidate at the website you will need your Dept of Education PIN and the amounts borrowed for each loan (and whether they are subsidized or unsubsidized). The PIN can be emailed within 4 hours so if you request it now you can still get your application completed (www.pin.ed.gov).
Remember you only have until midnight on June 30, 2006 to complete the application if you select to consolidate your loans
2006-06-30 04:12:56 · answer #1 · answered by Sara M 2 · 0⤊ 0⤋
It's probably not a bad idea. When you consolidate any loan, according to your credit ratings it shows that you have paid some off in full. (This is good). Now your best bet is to search for a lower interest rate with the firm you're consolidating with. (This will help you knock down the loan faster).
You'll only have one payment a month (which would still probably be less than paying a few separately). Just make sure you get the best terms meaning check the interest rate you're transferring to and the length /term of the loan.
2006-06-29 18:11:34 · answer #2 · answered by bunny942001 3 · 0⤊ 0⤋
Caught me just in time. That's what I am doing right now before the July 1 deadline when they raise the rates.
Student loan consolidation combines all your student loans into one, with one interest rate that is fixed at the time you consolidate. It is like having one loan with one payment and the interest rate can not go up.
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2006-06-29 18:09:27 · answer #3 · answered by Seikilos 6 · 0⤊ 0⤋
You should be left with a single payment that will be applied to all the debts. This usually involves a lendier that pays your debts and you owe them the balance. It can be a real help if you have several debts that eat up most of your pay. Be mindful of interest rates and payment terms. Consolidation can be very helpful, but can be risky if you go through a shady company, you could end up with more debt.
2006-06-29 18:07:59 · answer #4 · answered by Joe M 2 · 0⤊ 0⤋
If you are an "A" student, you can get interest rate reductions if you apply at MyRichUncle at myrichuncle.com
They give loans out based on grades, credit history, test scores, etc. Plus a 2% reduction on federal student loans. They are the first ones to do this.
2006-06-29 23:26:46 · answer #5 · answered by azan_anwar 1 · 0⤊ 0⤋
you are able to defer loans as quickly as you're at school. yet as quickly as you go with to consolidate your loans, be very careful. There are some god ones available, yet some scams to boot. be careful how they safeguard the interest on them.
2016-12-14 03:03:00 · answer #6 · answered by shaughnessy 4 · 0⤊ 0⤋
The lender will combine all your loans into a single loan and the interest rate will be determined by the weighted average interest of all your loans.
2006-06-29 18:07:22 · answer #7 · answered by auestionsandqnswers 2 · 0⤊ 0⤋
They combine all the loans together and you make one monthly payment. It is usually a smaller amount then they were individually.
2006-06-29 18:07:35 · answer #8 · answered by Anonymous · 0⤊ 0⤋
They combine several loans and you pay them longer, but pay less monthly, at least for me. Good luck.
2006-06-29 18:06:36 · answer #9 · answered by danac210 5 · 0⤊ 0⤋