DH's loans

[movingup]

Dh has about $20k worth of student loans that are now due for repayment. He got his degree 6 months ago. All the loans are from Wachovia, about 5 at $4k each. He did not get any options on what type of repayment program to go with like I did when I started repaying mine. He just got a payment book and it states 10 years, 7.14% interest. What is the best thing for him to do? Can he consolidate since they are all with one lender? Negotiate the rate as it seems very high to me? What companies do everyone here recommend? I get mailers all the time but I am not sure how reputable these companies are. I would appreciate any help you might give me.

 

Jen

[LynnInMN]

Dh has about $20k worth of student loans that are now due for repayment. He got his degree 6 months ago. All the loans are from Wachovia, about 5 at $4k each. He did not get any options on what type of repayment program to go with like I did when I started repaying mine. He just got a payment book and it states 10 years, 7.14% interest. What is the best thing for him to do? Can he consolidate since they are all with one lender? Negotiate the rate as it seems very high to me? What companies do everyone here recommend? I get mailers all the time but I am not sure how reputable these companies are. I would appreciate any help you might give me.

 

Jen

 

Student loan rates have been variable for the past few years and his current rate is the going rate. He probably should have consolidated prior to July to have locked in a lower rate. He cannot negotiate the rate as they are Federally set. However he could look for a lender that offers back end perks such as rate reductions for on time payments and payments made by auto debit. Since his is a FFELP loan, he really doesnt have a huge choice in payment plans. Were yours with the DOE? He can consolidate with the DOE which offers payment options or any of the other lenders around.

[movingup]

Dh has about $20k worth of student loans that are now due for repayment. He got his degree 6 months ago. All the loans are from Wachovia, about 5 at $4k each. He did not get any options on what type of repayment program to go with like I did when I started repaying mine. He just got a payment book and it states 10 years, 7.14% interest. What is the best thing for him to do? Can he consolidate since they are all with one lender? Negotiate the rate as it seems very high to me? What companies do everyone here recommend? I get mailers all the time but I am not sure how reputable these companies are. I would appreciate any help you might give me.

 

Jen

 

Student loan rates have been variable for the past few years and his current rate is the going rate. He probably should have consolidated prior to July to have locked in a lower rate. He cannot negotiate the rate as they are Federally set. However he could look for a lender that offers back end perks such as rate reductions for on time payments and payments made by auto debit. Since his is a FFELP loan, he really doesnt have a huge choice in payment plans. Were yours with the DOE? He can consolidate with the DOE which offers payment options or any of the other lenders around.

 

 

Mine were with the DOE. May I ask what the difference is between DOE loans and FFLEP? How much can we expect to reduce with the perks currently available?

[LynnInMN]

Mine were with the DOE. May I ask what the difference is between DOE loans and FFLEP? How much can we expect to reduce with the perks currently available?

 

FFELP stands for Federal Family Education Loan Program. There are many state and regional guarantors all over the country. DOE is Direct Loans. Difference?? Not a lot. However when it comes to consolidation, the FFELP lenders generally only have regular and income "sensitive" repayment plans. DOE offers 3 or 4 repayment options including income "contingent" repayment plans. The DOE has longer repayment terms.

 

Most reductions are 1/4-1/2%. I believe the DOE offers 1/4% reduction for direct payments.

 

You need to do your research and choose wisely as you can only consolidate once.

[movingup]

Mine were with the DOE. May I ask what the difference is between DOE loans and FFLEP? How much can we expect to reduce with the perks currently available?

 

FFELP stands for Federal Family Education Loan Program. There are many state and regional guarantors all over the country. DOE is Direct Loans. Difference?? Not a lot. However when it comes to consolidation, the FFELP lenders generally only have regular and income "sensitive" repayment plans. DOE offers 3 or 4 repayment options including income "contingent" repayment plans. The DOE has longer repayment terms.

 

Most reductions are 1/4-1/2%. I believe the DOE offers 1/4% reduction for direct payments.

 

You need to do your research and choose wisely as you can only consolidate once.

 

 

Thanks for all your help. I have been happy with Direct Loans, so I will see what they can do for DH.

 

Jen