Comments on: Get Ready to Consolidate Your Student Loans http://www.consumerismcommentary.com/get-ready-to-consolidate-your-student-loans/ A premier personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 26 May 2012 03:47:27 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: asdf http://www.consumerismcommentary.com/get-ready-to-consolidate-your-student-loans/comment-page-1/#comment-181829 asdf Sat, 20 Sep 2008 09:12:23 +0000 http://www.consumerismcommentary.com/?p=3374#comment-181829 GIven this news, I sure am kicking myself for attending school entirely on loans from July 15, 2006 - July 15, 2008. Now I get to pay 6.8% forever because of a simple case of bad timing! I worked full time through college and still accrued $11,000 of debt for an ASSOCIATES DEGREE. I also took out a $5,000 private loan to help me bridge the living expenses gap between my incredibly low income and my needs. I made less than $15,000 in 2007 working full time, so it was hardly a case of spending on frivolous things. Do I regret my decision to go to school? No, definitely not. I just wish I had not paid so much for my associates degree due to a combination of ridiculously high tuition prices and the refusal of the government to give me any financial aid although I can't possibly imagine being more qualified to receive it. I mean, it's mostly my fault: I had no idea that there was a school right down the street from mine where I could pay about half of what I did in tuition. The only good news I can see out of this is that my current employer is reimbursing me for my next two years of education, so if everything goes well, I should get a bachelors' degree with only $16,000 in debt. I'm still somewhat upset about my career prospects though. My degree, while not as utterly useless as an English degree, qualifies me to do one job and one job only. If I don't like it or I can't cut the mustard, I'm outta luck. So personally, I will be taking care of my student loans as quickly as possible to combat both the high interest rates and the distinct possibility that I will not be making a lot of money. Still, at the end of the day, my income cleared $20,000 a year in 2008 for the first time in my life. If I'm even able to double that once I get my bachelors I'll be content. GIven this news, I sure am kicking myself for attending school entirely on loans from July 15, 2006 – July 15, 2008. Now I get to pay 6.8% forever because of a simple case of bad timing! I worked full time through college and still accrued $11,000 of debt for an ASSOCIATES DEGREE. I also took out a $5,000 private loan to help me bridge the living expenses gap between my incredibly low income and my needs. I made less than $15,000 in 2007 working full time, so it was hardly a case of spending on frivolous things. Do I regret my decision to go to school? No, definitely not. I just wish I had not paid so much for my associates degree due to a combination of ridiculously high tuition prices and the refusal of the government to give me any financial aid although I can’t possibly imagine being more qualified to receive it. I mean, it’s mostly my fault: I had no idea that there was a school right down the street from mine where I could pay about half of what I did in tuition. The only good news I can see out of this is that my current employer is reimbursing me for my next two years of education, so if everything goes well, I should get a bachelors’ degree with only $16,000 in debt. I’m still somewhat upset about my career prospects though. My degree, while not as utterly useless as an English degree, qualifies me to do one job and one job only. If I don’t like it or I can’t cut the mustard, I’m outta luck. So personally, I will be taking care of my student loans as quickly as possible to combat both the high interest rates and the distinct possibility that I will not be making a lot of money. Still, at the end of the day, my income cleared $20,000 a year in 2008 for the first time in my life. If I’m even able to double that once I get my bachelors I’ll be content.

]]> By: Danielle http://www.consumerismcommentary.com/get-ready-to-consolidate-your-student-loans/comment-page-1/#comment-163775 Danielle Fri, 11 Jul 2008 18:27:51 +0000 http://www.consumerismcommentary.com/?p=3374#comment-163775 I would make sure you ask a lot of questions while doing this. Both my loans and my husbands loans were consolidated by the agencies that issued them and there was no overall reduction of our interest rate based on the current rates, just an averaging of the interest rates on all the component loans. The result? My $22K is at 2.875% (consolidated in early 2002) and his $13K is at 6.67% (consolidated in June 2008). In both cases they only averaged together the % rate of our individual loans, I just lucked out because interest rates were at low % rates when my loans were issued. I would make sure you ask a lot of questions while doing this. Both my loans and my husbands loans were consolidated by the agencies that issued them and there was no overall reduction of our interest rate based on the current rates, just an averaging of the interest rates on all the component loans. The result?

My $22K is at 2.875% (consolidated in early 2002) and his $13K is at 6.67% (consolidated in June 2008). In both cases they only averaged together the % rate of our individual loans, I just lucked out because interest rates were at low % rates when my loans were issued.

]]> By: Twiggers http://www.consumerismcommentary.com/get-ready-to-consolidate-your-student-loans/comment-page-1/#comment-159090 Twiggers Tue, 24 Jun 2008 15:49:05 +0000 http://www.consumerismcommentary.com/?p=3374#comment-159090 Yea, I would probably wait until next year IF you are in a grace period right now. If not, and you're paying upwards of 6%, then consolidate now! Odds are, even if rates are lowered again next year, it might only be by less than one percentage. Yea, I would probably wait until next year IF you are in a grace period right now. If not, and you’re paying upwards of 6%, then consolidate now! Odds are, even if rates are lowered again next year, it might only be by less than one percentage.

]]> By: Flexo http://www.consumerismcommentary.com/get-ready-to-consolidate-your-student-loans/comment-page-1/#comment-158970 Flexo Tue, 24 Jun 2008 05:12:33 +0000 http://www.consumerismcommentary.com/?p=3374#comment-158970 Jason: You could be right -- and you could be wrong. I don't think they'd be lowering rates as much as they are unless they believed that the Fed would keep rates low for a while. But will they be lower in July 2009? If not, you could be missing out on significant savings if you decide to wait. But if you decide to jump now, you may not have the opportunity to consolidate again next year. Jason: You could be right — and you could be wrong. I don’t think they’d be lowering rates as much as they are unless they believed that the Fed would keep rates low for a while. But will they be lower in July 2009? If not, you could be missing out on significant savings if you decide to wait. But if you decide to jump now, you may not have the opportunity to consolidate again next year.

]]> By: john http://www.consumerismcommentary.com/get-ready-to-consolidate-your-student-loans/comment-page-1/#comment-158950 john Tue, 24 Jun 2008 03:12:14 +0000 http://www.consumerismcommentary.com/?p=3374#comment-158950 People should really look into asking their employers to pay off their student loans. Many will do it with a couple year committment. People should really look into asking their employers to pay off their student loans. Many will do it with a couple year committment.

]]> By: jason http://www.consumerismcommentary.com/get-ready-to-consolidate-your-student-loans/comment-page-1/#comment-158934 jason Tue, 24 Jun 2008 01:31:56 +0000 http://www.consumerismcommentary.com/?p=3374#comment-158934 I could be wrong about this, but I believe it may be best to wait until June 2009 to consolidate. No one knows what the economy will do, but there is always a chance rates will drop again next year. During my first year of med school I locked in rates of around 2.8% on one year of loans. At this time next year, if you see the rates are going to increase, go ahead and consolidate. If not, then wait another year and evaluate the rate change again. Your variable-rate loan's rate will drop on July 1, but then it will stay the same until July 1, 2009. I could be wrong about this, but I believe it may be best to wait until June 2009 to consolidate. No one knows what the economy will do, but there is always a chance rates will drop again next year. During my first year of med school I locked in rates of around 2.8% on one year of loans. At this time next year, if you see the rates are going to increase, go ahead and consolidate. If not, then wait another year and evaluate the rate change again. Your variable-rate loan’s rate will drop on July 1, but then it will stay the same until July 1, 2009.

]]> By: Flexo http://www.consumerismcommentary.com/get-ready-to-consolidate-your-student-loans/comment-page-1/#comment-158912 Flexo Mon, 23 Jun 2008 22:59:43 +0000 http://www.consumerismcommentary.com/?p=3374#comment-158912 Thanks for all the questions. I've updated the post to include some answers as well as links for further information. Thanks for all the questions. I’ve updated the post to include some answers as well as links for further information.

]]> By: Brian http://www.consumerismcommentary.com/get-ready-to-consolidate-your-student-loans/comment-page-1/#comment-158911 Brian Mon, 23 Jun 2008 22:48:38 +0000 http://www.consumerismcommentary.com/?p=3374#comment-158911 Flexo, although Twiggers got sorted out, I'd still love some additional information on how to accomplish this, how to find out if your loans are applicable, etc. Thanks! Flexo, although Twiggers got sorted out, I’d still love some additional information on how to accomplish this, how to find out if your loans are applicable, etc. Thanks!

]]> By: Cody http://www.consumerismcommentary.com/get-ready-to-consolidate-your-student-loans/comment-page-1/#comment-158910 Cody Mon, 23 Jun 2008 22:43:27 +0000 http://www.consumerismcommentary.com/?p=3374#comment-158910 OMG! I had my loans initiated in 2004, I need more info on this. What happens on July 1st of 2008, where should I consolidate???? Give me links, give me info. please. OMG! I had my loans initiated in 2004, I need more info on this. What happens on July 1st of 2008, where should I consolidate???? Give me links, give me info. please.

]]> By: Twiggers http://www.consumerismcommentary.com/get-ready-to-consolidate-your-student-loans/comment-page-1/#comment-158902 Twiggers Mon, 23 Jun 2008 21:40:11 +0000 http://www.consumerismcommentary.com/?p=3374#comment-158902 I just called and answered my question. if you opened a new loan after 7/1/2006 you are stuck with that hideous 6.8% for ever and ever. I personally think it is wrong that the prime rate is low for everything else, but they stick student loans at a horrendous 6.8%. I am really contemplating writing to my Congressman about this. I mean, I only have about 30K at 6.8%, but still! That 3% interest would be a huge savings every single month. I just called and answered my question. if you opened a new loan after 7/1/2006 you are stuck with that hideous 6.8% for ever and ever. I personally think it is wrong that the prime rate is low for everything else, but they stick student loans at a horrendous 6.8%. I am really contemplating writing to my Congressman about this. I mean, I only have about 30K at 6.8%, but still! That 3% interest would be a huge savings every single month.

]]> By: Ian http://www.consumerismcommentary.com/get-ready-to-consolidate-your-student-loans/comment-page-1/#comment-158900 Ian Mon, 23 Jun 2008 21:33:56 +0000 http://www.consumerismcommentary.com/?p=3374#comment-158900 I believe this is only for federal student loans taken out before July 1, 2006, correct? I believe this is only for federal student loans taken out before July 1, 2006, correct?

]]> By: Twiggers http://www.consumerismcommentary.com/get-ready-to-consolidate-your-student-loans/comment-page-1/#comment-158897 Twiggers Mon, 23 Jun 2008 21:26:39 +0000 http://www.consumerismcommentary.com/?p=3374#comment-158897 Do you have a link for this info? I have federal stafford loans at 6.8% (the rest are consolidated at or below 4.25%). I wonder if these are eligible? Are they lowering the overall stafford percentage rate? This is really exciting and could save me ALOT of money if I can do this! Do you have a link for this info? I have federal stafford loans at 6.8% (the rest are consolidated at or below 4.25%). I wonder if these are eligible? Are they lowering the overall stafford percentage rate? This is really exciting and could save me ALOT of money if I can do this!

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