my loans are exorbitant and i'm paying $350/month but it's barely enough to cover my interest. i'm drowning. trying to find viable solutions. are loan consolidation companies legit?
2007-01-30 09:32:29 · 8 answers · asked by Francis G 1 in Education & Reference ➔ Financial Aid
You may consider Sallie Mae Student Loan Services. I consolidated my student loans and my interest rate is about 4%. This is only for Federal Loans and not private loans (e.g. Stafford, PLUS, etc.).
2007-01-30 09:37:20 · answer #1 · answered by Mr. Mui 3 · 0⤊ 1⤋
It is better to consolidate. My grandson is in the process of doing this as I type. You can go to www.citzibank.com and ask them to take over you loans and consolidate them. Then tell them you want your loan locked in at a smaller payment and the least interest. This way they can't raise it. Good Luck. We have talked to many banks and student loans companies and were told to do this. We think it is better to go to the bank and citzi is the best to work with. Citzi will let you have some forebearance also. Or deferment.
2007-01-30 09:40:14 · answer #2 · answered by ruth4526 7 · 0⤊ 0⤋
Loan consolidations are always good because your pay only one interest rate as opposed to multiple interest on multiple loans. Check with a local lender (bank) and also with the agencies where you have student loans thru...usually they will be happy to consolidate for you. Make sure to get the lowest possible interest rate and affordable payment plan for your specific budget
2007-01-30 09:39:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋
keep in mind with loan consolidation that you're extending the term of your loan (up to 30 years; the maximum term depends on how much student loan debt you have) in exchange for lower payments, which means you'll pay much more interest in the long run.
i consolidated my students loans with access group (accessgroup.com). they allowed me to pick and choose which loans i would consolidate and which ones i would leave untouched. as with many other consolidators, i get an instant discount on the interest rate, and an additional discount after making a certain number of payments on time, and another discount for signing up for direct payment from my bank account (which ensures that i'll make my payments on time, for that additional discount).
if you have multiple loans, run some loan calculators (bankrate.com, e.g.) or meet with a loan counselor to compare how much you'll pay back in total if you consolidated all of it versus if you consolidate only part of it. by doing this, i determined that it was better for me to consolidate only my lowest interest rate loans and to keep my higher interest rate loans separate so i can target higher payments toward that loan and thereby decrease the total dollar amount of interest i'll pay over the life of the loans.
good luck!
2007-01-30 14:20:37 · answer #4 · answered by Pookie 4 · 0⤊ 0⤋
Isn't the Govt. about to pass some legislation which will reduce the cost of student loans? Find out, and see if that makes a difference in your payments... perhaps you don't need to consolidate...
2007-01-30 09:36:28 · answer #5 · answered by RUNINTLKT 5 · 0⤊ 0⤋
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2014-04-25 21:22:32 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I do not know too much in regards to this topic. All I can tell you is that 2 good friends of mine chose the "loan consolidation" solution in order to pay their debt back. They both wished they never did.
2007-01-30 09:40:22 · answer #7 · answered by ? 5 · 0⤊ 0⤋
well, what i did, is instead of the loan consolidation companies, i went direct threw the Dept of Education to get my William Ford consolidation loan,,,,,,,, those companies dont tell you that you can do that,,,,,,, then they will base your payment on your income,,,,,,
go to www.dl.ed.gov
or call 1-800-848-0979
by using the Dept of Ed, you save yourself the additional fees the loan consolidation companies charge,
i found all this out when i was out of work, due to fractured knee,,,,,, the loan consolidation companies wanted me to send money, sign papers, before they would even tell me what my payments would be,,, i got lucky and called Dept of Ed,,,,,,
so i would start there, see what of their programs/repayment options you would qualify for,,,,,,, that is based on your income,,,, and family size,,,,
2007-01-30 09:42:35 · answer #8 · answered by dlin333 7 · 0⤊ 0⤋
Yes, most are. Just make sure that you don't end up get reamed at a higher interest rate.
2007-01-30 09:35:47 · answer #9 · answered by Dean 3 · 0⤊ 0⤋
Sh*T THey are a way to take $ from collagers
2007-01-30 09:36:08 · answer #10 · answered by Da Cool Dude 1 · 0⤊ 0⤋