Student Loans
Dakota's loan papers for school are due in any day now. I have to admit, they always give me butterflies in my tummy when I see that envelope in the mailbox. I know what it means.....another semester is looming ahead and with it, more money on the every growing loan balance.
It won't be long before the calls begin again about student loan consolidation. I'm not a huge fan of trying to do finacial type things over the phone so I know we will be working with an on-line company. For me, on-line stuff is so much easier and gives me time to read, digest, make sure I have all my questions answered and then complete an on-line application. If I'm not mistaken though, you have to wait until you are finished with school to consolidate but since we are a mere (!) two years from that point, I guess it's time to start doing some research. Clearly there are huge benefits to consolidating - smaller monthly payments, locked in interest rate, working with one financial institution instead of several, etc.. Everyone knows that consolidation loans save you money so it's a good bet that we'll be doing it when the time comes since we will be owing an amount equivalent to the national debt. Though I am grateful for Dakota receiving student loans because without them, she would certainly not be attending law school. Let's face it, without student loans, many of us would never have an undergrad or a graduate degree. Student loans are great to have available, no doubt about it.
Has anyone else consolidated their student loans? Care to share your experience?
7 comments:
ok - I confess I am a blog stalker -- I just finished law school and am in the process of consolidating all that debt!! I've found Wachovia is for me (takes less time then many others to reduce the interest rate after good payment history - 24 instead of 36 months for same 1.5% reduction) -- also with all the student loan fraud in the news this was a traditional bank that from my research didn't get involved with that mess
I consolidated years ago, my undergraduate and graduate school loans. It just made it easier in my mind to pay one loan to one place. I finally paid it all off about 3 years ago when we got a big tax refund, whew! That felt good.
You probably already know I'm in student loan h*ll. I've lived and supported the 2 of us only on student loans for the past 2 years.
I had only wanted to have to take them out for 2 years and now it looks like I'm going to have to take out a 3rd year of the maximum amount. With interest, this totals more than twice as much as I'll ever make on a public school teacher salary and teacher loan forgiveness plans are a joke.
I did consolidate my first year, but the rules changed last year and indeed you can no longer consolidate until you are out of school. Still, I get the buckets of unwanted mail and phone calls offering "deals" on consolidation. All my loans are with one lender. My consolidation is with the same lender. So far, no scams or surprises.
It makes me cry just to think about what I'll be giving up because of the lifetime of payments ahead of me. But then again, I have to think about the 2 years the loans have given me home alone with M.
mel
By the time I am done, I will have dug our family into a $200,000 hole. That's right. You are reading that correctly. $200,000. I keep hoping my client will get a big movie so I can cut back, but so far that hasn't happened.
Just the interest payments now are killing me.
But you know, my friend Brandy (she's a doctor) she consolidated and she stretched the repayments out until she's around 80. That way she always has low payments and if she wants to double up one or two months or for a year she can but they know if they take a financial hit they'll be ok.
I just try not to think about it.
Oh boy I too prefer doing things online. Over the phone - not so much!
I consolidated my loans shortly after law school. My undergrad and law school loans end up almost being a mortgage payment. If only I had rich parents...
I honestly can't remember the company I went through, but I loved them. (if you want me to find out, i will and email you.)
My original rate was 2.9% and it's now down to 1.9% due to my payment history.
I still won't pay it all off before Andrew goes to college, but it's better than what it could be I guess.
Follow up - I did my loan consolidation through financialaid.com
I don't think the deals are the same as they were 5 years ago, but they were very good to work with.
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