Found out why conslidation was taking so long(5+mo

[gregcjackson]

I applied for Consolidation with Citi back in May. I figure since they had all my loans except one it would be easy.They also offered a rate as low as 1.7% or somthing ridiculously low with on time payments, autopay,etc. Three months later- "We are still processing, locating,etc." A few days ago I get a letter- "All your loans are "'in school' -we cant do it until you get them changed, blah blah." At this point I'm not even going to bother. Until I get my statement. My interest only payment on an unsubsidized loan went up about 400% and is due in 15 days, when its usually 30.

 

So I call them up to get it done. Turns out its all heldup because Direct has one loan marked "in school".. its been like a year and a half since I was at least half time. I havent heard from Direct in like 7 years. Luckily Citi has their number. So I call Direct and it turns out their loan IS NOT in school and is in fact "in grace" with a payment due 11/28. So I guess if something isnt done fast I will owe my Int payment on the 11/13 and then ALL My Citi loans PLUS Direct on the 11/28 too. Now I am going to try to call citi back tonight. I hate using the phone.

[angeleyeskkhr]

What's the difference? All my loans are currently showing, "deferred-in-school status" and I've been able to consolidate my loans.

 

I don't see how that should be a factor in the ability to consolidate loans...*shrugs* I dunno though.

[gregcjackson]

WHo knows, the letter says thats the federal consolidation rule. Now they say it should be done by December 24th. That will make the consolidation process for me take over 7 months.

[threeve]

I believe you can do an in-school consolidation only when you consolidate with the company that already owns/services your loans. So if you have loans through Nelnet, you could not consolidate with Sallie Mae while in school, but Nelnet should be able to do it.

 

Its a moot point since you are no longer in school, but I thought it worth mentioning.

 

Hope it works out for you, it does seem to be taking a ridiculously long time.

[angeleyeskkhr]

I believe you can do an in-school consolidation only when you consolidate with the company that already owns/services your loans.  So if you have loans through Nelnet, you could not consolidate with Sallie Mae while in school, but Nelnet should be able to do it.

 

Its a moot point since you are no longer in school, but I thought it worth mentioning.

 

Hope it works out for you, it does seem to be taking a ridiculously long time.

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Ahhhh, I see. When I consolidated, I was dealing with the single lender rule anyway, so that's probably the deal.