OK, I realized my last post was grabbing for straws as I had no idea what I was talking about. I still am clueless about student loans but at least I now know about my student loans! Let me try my story again...
I want to buy a house next year... FHA loan. Everything is slowly falling into place but my student loans are killing my DTI ratio. I currently have 12 federal student loans with 2 different owners. I owe a total of $56,000 and will have to pay $700 a month just to meet the minimum payment. I am currently paying on 2 loans owned by Wells Fargo ($175/mth). I am on deferment for the other 10 until August of this year. I can probably defer another year but since we want to buy a house early next year, the DTI will still kill me.
I thought about a loan to consolidate all 12 into 1 payment but my credit scores are in the mid 500's. I have had serious lates in the past (120-150 days) but did not go into default.
Can anyone tell me what my options are? I really want to lower my payment and want to consolidate.
Any advice would be grealty appreciated.
Full Version: Student Loan Help Part 2
Consolidating your federal loans won't lower your interest rates since the new rate would simply be a weighted average of your current rates, but I'd suggest taking a look at consolidating through Direct Loans as they tend to have the best options for repayment plans. This will allow you to make just one payment every month and that payment could be lower than what you have now, depending on the particulars of your situation. Consolidating with them would not be score based, so you don't need to worry about that.
QUOTE(Saria @ May 14 2008, 05:16 PM) 
Consolidating your federal loans won't lower your interest rates since the new rate would simply be a weighted average of your current rates, but I'd suggest taking a look at consolidating through Direct Loans as they tend to have the best options for repayment plans. This will allow you to make just one payment every month and that payment could be lower than what you have now, depending on the particulars of your situation. Consolidating with them would not be score based, so you don't need to worry about that.
Thanks for the advice Saria. I looked at the Direct Loans wesbite and used the calculator. It says my loan payments could be $400! That would be just totally awesome.
Why do you say that comsolidating with them would not be score based? What are the criteria? IS have never heard of the company... what are the disavantages of this loan? it sounds too good to be true.
Does anyone else have any advice or ideas?
QUOTE(BubbaPuck @ May 14 2008, 08:54 PM)
Thanks for the advice Saria. I looked at the Direct Loans wesbite and used the calculator. It says my loan payments could be $400! That would be just totally awesome.
Why do you say that comsolidating with them would not be score based? What are the criteria? IS have never heard of the company... what are the disavantages of this loan? it sounds too good to be true.
Does anyone else have any advice or ideas?
Why do you say that comsolidating with them would not be score based? What are the criteria? IS have never heard of the company... what are the disavantages of this loan? it sounds too good to be true.
Does anyone else have any advice or ideas?
Direct Loans are administered by the US Department of Education. There is no criteria or credit check required to consolidate your federal loans, same way as there was no credit check when you borrowed them.
Disadvantages? None that I know of.
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