The whole thing confuses me.

My outstanding balance is around $21,000.

My payments are going to be $193 a month...which I can't afford.

I've gotten foreberance after foreberance...but I really wanna just start paying now.

My highest interest rate is 6.1%...but one of them is only at 5.3%?? Can I get a better interest rate somewhere else?

These loans went into repayment in June of 1999.

Is there any hope to get a lower payment?????

If you haven't already consolidated, you might want to do that now. It will give you a fixed interest rate. Most also offer some sort of rate reduction if you do auto-debit and another after XX months of on time payments.

Also, if you are on a standard repayment plan, you might want to investigate an extended, graduated, or income contingent plan. They offer various ways to get a lower monthly payment now, though you may end up paying slightly more total when all is said and done. Extended plans basically increase the term over which you repay the loan from I think 10 years to maybe 15. Graduated plans give you lower payments now (often interest only) and then increase over the years to make up the difference. Income contingent payments are based on the income reported to the IRS.

They told me Im already on the "Graduated" plan.....

If I do the consolidation, would I still be eligible for foreberances or deferments if I ever needed one? Or does consolidating eliminate those options?

Who/Where do I go to consolidate?

Hi Jake,

You can consolidate at Salliemae.com, or have them send you the forms via snail mail.

I just read this thread and there are some ideas about consolidation here too. Hmm Looks like I have my homework to do too!

http://creditboards.com/forums/index.php?showtopic=147676

are all your SL's with the same company? If so I believe you can only consolidate with that company (please forgive me if I'm wrong)...

Otherwise I believe you can choose who you consolidate with?

Assuming you don't have a single lender, you have a lot to choose from, including the federal government directly through Direct Consolidation. All offer varying incentives (interest reduction for auto debit payments, after X on-time payments, principal reduction, etc.). Some even offer incentives based on where you live, so you'll want to dig around. I believe that you do retain your deferment/forbearance options with consolidation, but I'm not 100% positive on that.

Hope this helps!

When I consolidated, they said I did still get the deferment/forbearance I believe, just that I gave up the 6 mo. grace period (I have an in school deferment right now)....but don't quote me on that

When i first consolidated, I used up all my deferment and forebearabnce, I think. Then I went back to school, so had in-school deferment... then i reconsolidated, started the deferment/forebearance over, or so they told me I could. I stayed in school, so I haven't actually used that deferment option yet. But the loans that I just consolidated are on the income contingent thing, and my monthly payments are nothing. The interst is captilized, though. So, my understanding is when you consolidate, you start your options over. 3 years deferment, 3 years forebearance... good luck.

There is no set timeline for forebearance. Forebearances are simply an administrative function and are offered as a courtesy. Interest still accrues and you may be required to make interest only payments. Forebearances should be requested only as a last resort, that is after you have used up all eligible deferement priveleges.

http://loanconsolidation.ed.gov/forms/feddirconlo.pdf Scroll down to page 12.

You can get up to 3 years for unemployment and economic hardship. There are also deferments for parental leave and working mother, and teaching in a designated area.

I assume the interest capitalization is on unsubsidized loans?

I personally don't like to have the interest capitalized because I don't want to pay interest on interest...So I just send in a $20 check each month to pay interest (it actually pays more than the interest, but still).

Actually on the ICR repayment plan, the interest is capitalized on both the sub and unsub loans. They would both be considered in active repayment.

even with the inschool deferment? I thought the gov paid the interest on the subsidized loans while you were in school??

Gah, maybe I need to vamp up my payments on the WF loans (they consolidated, but kept the sub and unsub separate...I assumed that was because I was still in school and the govt was paying the interest?)

Govnt does pay the interest while you are in school. Not while in repayment. Guess I misread the questin wrong. I working on making 60 lbs of soap today with two screaming kids fighting. Had to concentrate.

NO problem She said both the ICR and that she stayed in school..

I just thought maybe I had it wrong there for a second..It wouldn't be the first time.

Holy cow!! 60 lbs of soap!? (send the kids to their rooms if they don't keep it down. )