When (or if) to defer and consolidate

[ccbvictim]

Good afternoon,

 

I have student loans (subsidized and unsubsidized). I am currently in my grace period and go into repayment status in May (finished school in November). I know I want to consolidate and I know that I won't be able to afford payments even then (haven't secured a new job with better pay after having gotten this new degree of mine).

 

After talking with the company who serviced my loans, I was told to consolidate and then apply for a deferrment. I am still unsure about the difference between deferrment and forbearance, so I was working with the assumption that the loan servicer gave me accurate information.

 

Now that I have perused the boards a bit I have noticed that a few folk have gotten "caught between the cracks" and have negative TLs on SLs because deferrments and forbearances were applied for/granted after a payment is cited as late. I don't want to fall between the cracks.

 

That said, here are my questions (if additional info is needed from me ask and I'll do my best to answer):

 

When do I want to apply for my consolidation now or after I am out of grace?

 

Am I better off with a deferrment or a forbearance? (current salary doesn't allow me to pay full amount when I go into repayment but I'd be able to pay something towards the loan)

 

Have a private loan for my child's education expenses. Would it be beneficial to use that servicer to consolidate my student loans?

 

Thanks for helping/suggesting/etc....

[Cynic]

When do I want to apply for my consolidation now or after I am out of grace?

 

Apply to consolidate now. It can take 6- 12 weeks and May and June are the busy months for consolidation. Plus some of your loans may have a lower rate while in grace, making the weighted average a bit lower.

 

Am I better off with a deferrment or a forbearance? (current salary doesn't allow me to pay full amount when I go into repayment but I'd be able to pay something towards the loan)

 

Deferment is always better if you qualify. You can still make payments for any amount you are able to while in a deferment. Apply once you have a payment due in 60 days. Even if you consolidate, still apply on your existing loans- you never know when something may make a consolidation take longer then what it should.

 

Have a private loan for my child's education expenses. Would it be beneficial to use that servicer to consolidate my student loans?

 

That's entirely up to you. If you like dealing with them why not?

 

Thanks for helping/suggesting/etc....