2006-12-27 08:16:25 · 6 answers · asked by Jose M 1 in Education & Reference ➔ Financial Aid
There are other benefits to consolidating than many people think. The obvious ones include combining all your loans into one and setting a fixed rate. There are no costs or hidden fees to consolidating and no credit check involved. The process takes just a few minutes and can be done over the phone.
Other benefits that not many people are aware of include an option for forbearance. If at anytime you are not able to make payments, forbearance allows you to suspend your payments on your loans for up to 36 months. This 36 month period will give you a better opportunity to get back on you feet. It will also prevent you from lapsing into further delinquency and avoid default. Also, the 36 months does not have to be used consecutively.
Through the consolidation program there are several repayment plans that you can choose from. Rather than making the same payment each month over the life of the loan you can choose from several other plans. These repayment plans allow you to lower you monthly payment for up to the first five years if you do not have a steady income.
One downfall people consider when consolidating is the repayment length. When consolidating, the term of the loan is increased and it varies according to the total sum of your loans. The repayment length is determined by the Department of Education, but it is not the term you have to stick with. There are no pre-payment penalties. Basically, you do have the option of paying off your loans in a shorter term than what is given.
My name is Monica Steczek and I work with Student Aid Lending. We are a title four lender administered by the Department of Education to help students such as yourself with any questions or concerns relating to student loans. If you have any additional questions, do not hesitate to call me. I will be your personal student aid advisor and will be happy to answer those questions for you. You can also get more information through our website. The number is (800) 964-0642 ext 102 and the website is www.studentaidlending.com.
2006-12-27 12:23:21 · answer #1 · answered by Student Loans 4 · 0⤊ 0⤋
Consolidation is often the right answer for student loans. Possible downsides are the shady characters who have recently entered the consolidation market (do your research and stick with a big company with lots of experience). The other possible downside is that with an extended repayment period (up to 30 yrs depending on how much you owe) you end up paying more interest over the life of the loan, if you make only the minimum payments.
Sallie Mae offers lots of information on consolidation, including an FAQ and a calculator to show you what your payments would be.
http://www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/student_loan_consolidation.htm
2006-12-27 18:23:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The total bill!!!!! I didnt realize how much all of my education cost me until I consolidated. Then it was scary.
But seriously, I consolodated like 6 different loans from allover the country and two different decades. I got a 3.5% interest rate. I have one payment a month. I have used various types of hardship deferrments and such which were no longer avaialable on my original loans.
I dont see a downside!
Hope this helps. Happy new year.
2006-12-27 16:20:12 · answer #3 · answered by baldisbeautiful 5 · 1⤊ 0⤋
It depends on the interest rate & any hidden fees.
2006-12-27 16:23:32 · answer #4 · answered by elf3 2 · 0⤊ 0⤋
here are the pros and cons of consolidating loans
http://finance-information.blogspot.com/2006/12/pros-and-cons-of-debt-consolidation.html
2006-12-27 16:24:50 · answer #5 · answered by Jake K 2 · 0⤊ 0⤋
nothing.borrow extra,.......
2006-12-27 16:31:05 · answer #6 · answered by freddelorme35 3 · 0⤊ 0⤋