Consolidation Question

[Llwellyn]

I recently did an in-school consolidation; I was fairly near the loan limits for both types of Stafford loans. I just got an update to my SAR for the 06-07 year, saying I've exceeded the loan limits due to the consolidation and I'm no longer able to borrow more. My loan for Fall '06 has already been paid to the school, but that just shot my Spring semester loan in the foot as of right now. All of the lenders who were paid are still reporting full loan amounts both on my CR and on NSLDS. The SAR lists NSLDS as the source of the correction removing my ability to borrow more.

 

My question is this: when the lenders finally get their stuff together, are those loans that were paid via consolidation going to report as zero to NSLDS and let me borrow again, or did I totally screw myself over for the rest of my bachelor's degree?

[LynnInMN]

Stafford Loan cap is $46k for undergrad. Consolidating them does not "zero" out that balance. If you have exceeded your stafford loan limit, expect them to bill you very shortly. They will pull back the aid from the school.

[TxQuiltGirl]

Consolidation would not push the OP over the limits for Stafford loans.

 

OP, what is the exact amount you've borrowed to date?

[LynnInMN]

Consolidation would not push the OP over the limits for Stafford loans.

 

OP, what is the exact amount you've borrowed to date?

 

 

Quilty, the way I read it, the OP was asking that if he consolidated his staffords, would that zero down his stafford cap of $46k. The answer would be no...even consolidated they are still term consolidated stafford loans.

[TxQuiltGirl]

Consolidation would not push the OP over the limits for Stafford loans.

 

OP, what is the exact amount you've borrowed to date?

 

 

Quilty, the way I read it, the OP was asking that if he consolidated his staffords, would that zero down his stafford cap of $46k. The answer would be no...even consolidated they are still term consolidated stafford loans.

 

 

That wasn't the question - she said she's already done the consolidation and as a result of that, got a letter stating that she's hit the cap. I can't see how that would be possible.

[Llwellyn]

Consolidation would not push the OP over the limits for Stafford loans.

 

OP, what is the exact amount you've borrowed to date?

 

 

Quilty, the way I read it, the OP was asking that if he consolidated his staffords, would that zero down his stafford cap of $46k. The answer would be no...even consolidated they are still term consolidated stafford loans.

 

 

That wasn't the question - she said she's already done the consolidation and as a result of that, got a letter stating that she's hit the cap. I can't see how that would be possible.

 

Ouch... I'm a he!

 

I borrowed approximately $37K to date, in a mix of subsidized and unsubsidized loans. I did a direct loan consolidation, and now NSLDS is saying I have $60K in subsidized and unsubsidized loans. I haven't borrowed more than the cap in non-consolidation loans, but NSLDS still says my outstanding Staffords are $60K right now, and that's what the corrected SAR says. I should finish school only spending about another $5K in loans, meaning I'd be at about $42K in actual outstanding loans not counting the DL consolidation.

 

I know it's an excessive amount, but I've been in and out of school way too many times since I was 18. I'm going to be paying for my previous stupidity for the next 15 years. I'm just hoping I haven't screwed myself out of being able to borrow to finally finish this bachelor's degree. I'm making a better salary now than I previously was, and will qualify for tuition reimbursement eventually, but for now I still can't afford to pay out of pocket... maybe by fall of '07.

[ignoranceIsn'tBliss]

Consolidation would not push the OP over the limits for Stafford loans.

 

OP, what is the exact amount you've borrowed to date?

 

 

Quilty, the way I read it, the OP was asking that if he consolidated his staffords, would that zero down his stafford cap of $46k. The answer would be no...even consolidated they are still term consolidated stafford loans.

 

 

That wasn't the question - she said she's already done the consolidation and as a result of that, got a letter stating that she's hit the cap. I can't see how that would be possible.

 

Ouch... I'm a he!

 

I borrowed approximately $37K to date, in a mix of subsidized and unsubsidized loans. I did a direct loan consolidation, and now NSLDS is saying I have $60K in subsidized and unsubsidized loans. I haven't borrowed more than the cap in non-consolidation loans, but NSLDS still says my outstanding Staffords are $60K right now, and that's what the corrected SAR says. I should finish school only spending about another $5K in loans, meaning I'd be at about $42K in actual outstanding loans not counting the DL consolidation.

 

I know it's an excessive amount, but I've been in and out of school way too many times since I was 18. I'm going to be paying for my previous stupidity for the next 15 years. I'm just hoping I haven't screwed myself out of being able to borrow to finally finish this bachelor's degree. I'm making a better salary now than I previously was, and will qualify for tuition reimbursement eventually, but for now I still can't afford to pay out of pocket... maybe by fall of '07.

 

according to the government website. The max is independent undergrad stafford loans. $46,000—No more than $23,000 of this amount may be in subsidized loans.

 

http://www.studentaid.ed.gov/students/publ...ns_stafford.htm

 

Maybe you are at your limit for subsidized. Or if it's a recent consolidation, the loans are double reporting b/c the old loans haven't been fully paid off yet.

[Melanie1978]

Same thing is happening to me. The DOE needs to get their system straight.

Basically you are being reported double of what you actually owe. It looks like you owe the consoldiation plus the loans you consolidated. I guess that is why they tell you to wait till you graduate because it messes everything up. I am really upset right now about my own situation. This also happened to a friend of mine. The system makes no sense. Did you check the outstanding priniciple column? This column was correct for me but that is not the column they were looking at the column that just stated how many loans I was rewared when a lot of them I never even took out the full amount. The priniciple outstanding shows how much was disbursed to you that you received for tuition and books. The very first column is only how much you COULD have qualified for. It is probably twice as much as the outstanding prinicple column when the consolidation loan is added in.

 

Now I am no expert and I haven't the faintest idea of what to do, but I just wanted you to know your not alone and this is what I think is happening.

Edited September 16, 2006 by Melanie1978

[Llwellyn]

Well, the good news is it's just taking the lenders FOREVER to update that they've been paid, on their own sites, on NSLDS, and on my CR's. Sallie Mae finally sent a letter showing they were paid and then the next FULL month after they'd been paid (paid in July, reported Sept. 1) updated the CRA tradelines and their entries into NSLDS. ACS has yet to even show that they were paid in their own system, let alone properly report to NSLDS or the CRA's. How long do they have to bring these things up to date, anyway?

 

So, eventually stuff will get straightened out but don't be surprised if you get screwed over for a semester unless you're borrowing from your consolidator.

[Llwellyn]

Ah, the plot thickens a bit. ACS isn't dragging their feet reporting, they're saying they've never received the payments that were sent! Fortunately, Direct Loans was very interested in addressing the issue and is having their researchers find out why. They said they (paid-off lenders) usually have 60 days to credit payments to an account but that she'd start the investigation process now anyway since it's close enough and ACS denies receipt of the payment that DL insists was cashed

 

Also, I found out I can roll over my loans for Fall 2006 into the consolidation that's already happened also, so I can rid myself of ACS/BOA if necessary at the end of the semester.

 

If I can save up enough between now and Spring, my grants plus tuition reimbursement for this semester will be enough to pay for Spring 2007 and I can cancel my loans for that term; then hopefully I can use grants or 0%/low APR credit and pay out-of-pocket until my Fall 2007 reimbursement is paid, and I may be able to be finished borrowing and start working on repayment