I Need Advice for the future

[adams313]

I have a ton of questions, but here is the scenario first:

 

 

I am graduating this December and I will have about $95k in student loans ( all private), spread out over the various loans I recieved each semester. Thanks to the letters I get in the mail, stating how much I will have to pay each month ( I get my loans deferred so I dont pay anything actually) I have figured out that I would be paying about $900/month in student loans, if I just pay the minimum amount each month. I was wondering:

 

1.) Would it be better to consolidate these loans (about 7 in total) into one big loan?

2.) Would consolidating these loans improve/hurt my credit score?

3.) What is a good percentage rate for loan consolidation?

4.)IF I CONSOLIDATED, INTO A BIG $95K, SINGLE LOAN, WHAT WOULD MY MONTHLY PAYMENT BE?

5.) Is it better to consolidate over a 15, 20, or 30 year term?

 

PLEASE HELP ME OUT AS GRADUATION IS AROUND THE CORNER. SOMEONE PRAY I FIND A JOB BY THEN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[LynnInMN]

I have a ton of questions, but here is the scenario first:

 

 

I am graduating this December and I will have about $95k in student loans ( all private), spread out over the various loans I recieved each semester. Thanks to the letters I get in the mail, stating how much I will have to pay each month ( I get my loans deferred so I dont pay anything actually) I have figured out that I would be paying about $900/month in student loans, if I just pay the minimum amount each month. I was wondering:

 

1.) Would it be better to consolidate these loans (about 7 in total) into one big loan?

It would help with management of the loans.

2.) Would consolidating these loans improve/hurt my credit score?

3.) What is a good percentage rate for loan consolidation?

It all depends on how credit worthy you are. What is good to one person is horrible to another

 

4.)IF I CONSOLIDATED, INTO A BIG $95K, SINGLE LOAN, WHAT WOULD MY MONTHLY PAYMENT BE?

 

Can't tell you with out your interest rates.

 

5.) Is it better to consolidate over a 15, 20, or 30 year term?

It really depends on what you can afford.

 

PLEASE HELP ME OUT AS GRADUATION IS AROUND THE CORNER. SOMEONE PRAY I FIND A JOB BY THEN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[eodger]

Ok, just caught this message.

 

First of all, you should talk to a financial adviser. Most colleges have them, and they'll give you a lot of good information about how long your grace period will last, etc. Schools also have a list of preferred lenders you can consult for consolidation info, just make sure they haven't paid the school off (paging Nelnet...), hehe. As far as question 3 goes, the lowest rates I've seen are through Educational Loan Company, who my school referred me to -- I'll get a 2.5% reduction rate after 4 years of on-time payments, etc. You should also look at Citibank, Wellsfargo, other banks, but I don't know if they have comparable packages. Given the amounts of your loans you'll probably be paying them off for a while, but you can use a graduated income-based plan and get pretty good monthly rates.

 

As far as I know consolidation will never HURT your credit. If you make the monthly payments you'll build credit, actually.

 

Don't worry, I'll pray for you to the job gods.

[Cynic]

Ok, just caught this message.

 

First of all, you should talk to a financial adviser. Most colleges have them, and they'll give you a lot of good information about how long your grace period will last, etc. Schools also have a list of preferred lenders you can consult for consolidation info, just make sure they haven't paid the school off (paging Nelnet...), hehe. As far as question 3 goes, the lowest rates I've seen are through Educational Loan Company, who my school referred me to -- I'll get a 2.5% reduction rate after 4 years of on-time payments, etc. You should also look at Citibank, Wellsfargo, other banks, but I don't know if they have comparable packages. Given the amounts of your loans you'll probably be paying them off for a while, but you can use a graduated income-based plan and get pretty good monthly rates.

 

As far as I know consolidation will never HURT your credit. If you make the monthly payments you'll build credit, actually.

 

Don't worry, I'll pray for you to the job gods.

 

I agree about talking to a financial adviser, and shopping around, and that's basically all I agree with you about.

 

OP stated s/he had private loans. Most of your suggestions and info pertain to federal (FFELP) loans.

 

The school may or may not know the terms of the private loans, like when grace period ends (if there is one), etc. The lenders will have that info, and it may be different for each private loan.

 

"Educational Loan Company" does not offer any private loan consolidation whatsoever- all they actually do is market FFELP consolidations. I wouldn't personally gamble on a promise of a 2.5% interest-rate reduction after 4 years of on-time payments from a company that hasn't even been in business for 5 full years. Anyway- they don't consolidate private loans.

 

Private loans generally don't offer "graduated" or "income-based" repayment plans.

 

OP's best bet is to refinance them (with a reputable, established lender) at a lower rate if possible, or- if that can't be done- maximize income and minimize expenses in order to pay the loans off ASAP.