There are so many companies out there to choose from. I really want to go ahead and consolidate while I am in school so I can get a good rate and not get charged a ridiculous interest rate. Which company should I should and what rates are they offering?

Who are your loans thru now?? Are you aware of the single lender rule??



There really is no such thing as a ridiculous interest rate in student loans. Your interest is a weighted average of your current loan rates. Some lenders do offer after consolidation perks such as on time payments or for auto payments.

In-school consolidation loans are only available through the Direct Consolidation Loan Program. The FFEL Program cannot consolidate loans for borrowers until they leave school and are in grace or repayment.

When are you graduating? Interest rates on SLs are set as of July 1 each year and then they stay at that rate until the next July 1. If you're graduating in May, you may want to wait, especially if you're not subject to the single lender rule (FYI -- the single lender rule requires that you consolidate with the current holder of your loans if you only have one lender) and want to look at lenders other than Direct.

The general rules for consolidation are set by the government, so you don't have to worry too much about being taken advantage of there. Again, assuming that you're not subject to the single lender rule (and you aren't in school anymore so you can choose from amongst many lenders), really the only thing to look for is the "perks" that each lender offers such as interest rate reductions for on-time payments and/or automatic debit payments. That's really about all that changes from lender to lender.

Good luck!!

Any experience or suggestions as to the better companies with the most perks?

Any of them accept monthly payments with credit cards without extra charge?

UHEAA gives a 1.25% interest rate reduction for using automated payments and then another 1% after you make 48 on-time payments...

uheaa

You have to be out of school, and you can't have all of your governement loans with the same lender unless it is Direct Loans.

I would try to avoid private companies. Many to not allow the same forebearance conditions and deferment as the public ones. My sister-in-law learned her lesson when she found that she could not get a three month hardship deferment during a tight period... and all it takes for my wife and I is a quick phone call.

Almost all of the student loan consolidators are technically private. Only Direct Loan lending is a public program.

Deferment priveleges are the same for either type of lender. They are set by the HEA. Forebearances are a courtesy...there is no true guideline.

[Does forbearance mean fogiving of interest?

quote name='LynnInMN' date='Jan 5 2006, 06:55 PM' post='1204550']
[quote name='pastpolls' post='1203684' date='Jan 5 2006, 12:33 PM']
I would try to avoid private companies. Many to not allow the same forebearance conditions and deferment as the public ones. My sister-in-law learned her lesson when she found that she could not get a three month hardship deferment during a tight period... and all it takes for my wife and I is a quick phone call.
[/quote]


Almost all of the student loan consolidators are technically private. Only Direct Loan lending is a public program.

Deferment priveleges are the same for either type of lender. They are set by the HEA. Forebearances are a courtesy...there is no true guideline.
[/quote]

May I please ask for help on single loan rule: If you graduated, have only one loan from Gov, current on loan: Can you consolidate but only with Gov.? Would there be any benefit?