Consolidating Student loans

[RedRockClimber]

Hey guys, I was reading another thread and just want to be certain about this. I am a full-time student and would like to go ahead and consolidate the loans I already have, but I had read that I must be in my grace period or just not in deferment or something. Is that true? I have never defaulted or missed payments, just want to consolidate before new bills pass congress. Any ideas? I can try to call Sallie Mae tomorrow, but it is on my mind right now. So... can I consolidate loans while still in school?

[shop_free]

Hey guys, I was reading another thread and just want to be certain about this.  I am a full-time student and would like to go ahead and consolidate the loans I already have, but I had read that I must be in my grace period or just not in deferment or something.  Is that true?  I have never defaulted or missed payments, just want to consolidate before new bills pass congress.  Any ideas?  I can try to call Sallie Mae tomorrow, but it is on my mind right now.  So... can I consolidate loans while still in school?

<{POST_SNAPBACK}>

 

 

interested in this also!

[stimpy]

If you are a student in school, enrolled at least 1/2 time, you can not consolidate your stafford loans with any servicer other than William D Ford Direct...except for loans that went into repayment - example - if you took 6 months or more off school, and your student loans went into repay, those loans would be eligible to be consolidated, but NOT the new loans you took out when you returned to school as a 1/2 time student or greater.

 

The exception is, again, Direct Loans, who will let you consolidate your loans at pretty much any time - and will still give you a 6 month grace period after separation from school.

 

Hope this helps, gl

[shop_free]

If you are a student in school, enrolled at least 1/2 time, you can not consolidate your stafford loans with any servicer other than William D Ford Direct...except for loans that went into repayment - example - if you took 6 months or more off school, and your student loans went into repay, those loans would be eligible to be consolidated, but NOT the new loans you took out when you returned to school as a 1/2 time student or greater. 

 

The exception is, again, Direct Loans, who will let you consolidate your loans at pretty much any time - and will still give you a 6 month grace period after separation from school.

 

Hope this helps, gl

<{POST_SNAPBACK}>

 

 

So is this a good idea? Or should one wait until they are finished with school?

[RedRockClimber]

Well, this is what I was told or found in the last couple days. You can consolidate while in school, but you lose your grace period, and then the loan becomes payable immediately and you have to pay while you wait for the new in-school deferment to be processed. Again, this is not written in stone,a nd I have had lots of conflicting information on this seemingly very simple question. As for whether it is a good idea, couldn't tell ya. YMMV. I'm thinking about it since I still have a few years more of school, and would like to get what I can locked in with interest rates, in case that changes. So, I'm still talking to those who are supposed to know more than me about this.

[shop_free]

I guess you and I are in the same boat..let me know what you come up with. thanks

[stimpy]

So is this a good idea? Or should one wait until they are finished with school?

 

All I can tell you is this: interest rates on student loans are at a 40 -year low; it appears likely at this point that rates are going up July 1 (the Congressional Budget office forecasts an increase from the current 3.37% to 6.9% - Wall Street Journal 2-09-05), also the new budget submitted by President Bush proposes ending fixed rate consolidations, allowing only consolidations at variable rates starting in 2006. Furthermore, practically every respected expert urges consolidation this year. If you wait, you may miss the boat, and end up paying a lot more on the repayment of your loans.