CreditBoards > what do I do?

raichelle2

May 24 2008, 04:04 PM

I have two separate consolidated student loans, loan #1) roughly $18K with a 6.8% rate

. They want me to pay back ~$200/month on this loan and my other consolidated loan is ~$11K with a 4% rate

(better) which they want to start paying back $80/month. Obviously just getting out of college, these payments for me are not that! feasible right now.

I read about student loans all the time and the amount of info is hard to sort through but using logic, I'm thinking it is not in my best interest to consolidate both of these loans in July???

Also is there a way to talk these mongers down to lower payments? Is there anything "wrong" with 2 loan payments?

I hope this all makes sense, I can provide more info if needed. Thanks a bunch.

LynnInMN

May 24 2008, 07:05 PM

QUOTE(raichelle2 @ May 24 2008, 04:04 PM)

I have two separate consolidated student loans, loan #1) roughly $18K with a 6.8% rate

. They want me to pay back ~$200/month on this loan and my other consolidated loan is ~$11K with a 4% rate

(better) which they want to start paying back $80/month. Obviously just getting out of college, these payments for me are not that! feasible right now.

I read about student loans all the time and the amount of info is hard to sort through but using logic, I'm thinking it is not in my best interest to consolidate both of these loans in July???

It really wont matter when you consolidate as your new consolidated interest rate would be a weighted average of your current fixed rates.

Also is there a way to talk these mongers down to lower payments?

Have you read your lenders website? Depending on whether it is a FFELP consolidation or a Direct Loan Consolidation, they will list options such as graduated payments, income sensitive or income contingent repayment. No real need to talk them down....it is your option. However keep in mind when choosing a payment option that you may be lengthing your term....on your $18k loan your monthly interest is approx $102 per month and your $11k loan is about $36 per month.

Is there anything "wrong" with 2 loan payments?

I hope this all makes sense, I can provide more info if needed. Thanks a bunch.

Jaysmyne

May 25 2008, 09:52 PM

sometimes when you have poor or no credit the interest rate is really high the best advice I can give you is to see about consolidating your loans or make the minimum payments until you can pay more. There are some interesting ways to earn money online or in real life....just get creative

ziggypop

May 26 2008, 11:09 AM

QUOTE(raichelle2 @ May 24 2008, 04:04 PM)

I have two separate consolidated student loans, loan #1) roughly $18K with a 6.8% rate

. They want me to pay back ~$200/month on this loan and my other consolidated loan is ~$11K with a 4% rate

(better) which they want to start paying back $80/month. Obviously just getting out of college, these payments for me are not that! feasible right now.

I read about student loans all the time and the amount of info is hard to sort through but using logic, I'm thinking it is not in my best interest to consolidate both of these loans in July???

Also is there a way to talk these mongers down to lower payments? Is there anything "wrong" with 2 loan payments?

No, there's nothing wrong with two payments, unless you're not on auto-pay (which most give an interest rate reduction for, by the way, if you're not) and you're concerned about forgetting one of them. Lynn had good advice; check with your lender for different repayment options. There are a lot of different options for repayment, especially right after graduation. With those interest rates, it sounds like these are government-backed loans?

I hope this all makes sense, I can provide more info if needed. Thanks a bunch.

QUOTE(Jaysmyne @ May 25 2008, 09:52 PM)

sometimes when you have poor or no credit the interest rate is really high the best advice I can give you is to see about consolidating your loans or make the minimum payments until you can pay more. There are some interesting ways to earn money online or in real life....just get creative

Actually, assuming these are government-backed loans, credit has nothing to do with it. The interest rate is set annually by the department of education and that is the only determining factor in what your interest rate is and the OP said she already consolidated them. She could consolidate them together into one loan, but, as Lynn said, the interest rate would be the weighted average of the two current loans. There are other repayment options for consolidated loans, however.

OP, good luck with your loans! Hope this helps!

raichelle2

May 29 2008, 11:18 PM

I can care less about making two payments versus one...

but I guess what I really want to know is.... will consolidating both of those loan be hurtful or helpful? I'm thinking if I lose the 4% rate with the one loan, that would suck but if I can consolidate both into one with a rate under 6.8.. (closer to 4%) I am better off.

I just don't know anyone with a student loan with a rate of 4%..... right now I wanna ride it till the wheels fall off. lol

Saria

May 30 2008, 12:16 AM

Go back and read Lynn's post again. Your rates won't change if you consolidate.