How to Consolidate Your Loans While Still in School!

[broke2005]

I just consolidated $30k in undergraduate and graduate loans.  By doing this, I'm going to end up saving over $10k in the 20 year pay back period.  Since I'm going to LS this fall, I just have to call my lender and tell them to defer payment three years out. Remember to do that so your lender know what's going on.  This is a big change, since up until recently you could not consolidate until you were out of school.  Even if you miss out on the 6 month grace period, it's no biggie.  For me, it's a $1,200 difference (paying immediatley after graduation) over a $10,000 difference in the LR.

[yomugonamug]

By doing this, I'm going to end up saving over $10k in the 20 year pay back period

You'll wait 20 years to pay those loans?! I mean, my sister paid up her $300,000 house in just 5 years!

[rapunzel]

That's awesome, thank you.

[jdmba2007]

I checked my loan consolidation status on line and it looks like it is all processed! One less thing to worry about! How is everyone enjoying working so far this summer? I really like the law firm that I am at:)

[jdmba2007]

You are welcome!  Glad to help.

By the way, I actually followed the directions today and it worked no problem!

Todd

So did you use the feds( www.loanconsolidation.ed.gov) to keep our six month grace period or choose a private lender that offered better terms and conditions in other areas?

[jdmba2007]

cool. I will have a lot of loans when I am done. The only thing I am happy about is that the interest rate will be VERY low for most of my loans.

[jdmba2007]

I found these Georgetown links on the subject today...

http://www.law.georgetown.edu/finaid/loanconsolidation/#still
http://www.law.georgetown.edu/finaid/loanconsolidation/

I think they are informative

[Wild Jack Maverick]

I just wanted to let you know that the interest rates for Stafford loans will increase to 4.7% (from 2.77%) beginning July 1.

According to my lenders, some of the rates would increase to more than 5%.

By federal law, consolidations can be done only by the original lenders. Hence, a person cannot transfer the loans to their financial institutions and consolidate.

The consolidation specials are directed mainly at recent grads, however, students are also encouraged to consolidate as a way of keeping the low interest rates. Consolidation will also put the loans into the repayment status, so any students who aren't ready to begin repayment must remember to re-apply for deferment.

[SLJ0720]

I thought I could consolidate my loans through the government and still keep my grace period, but I called and found out that because my loans didn't originate as Direct loans that I would lose it if I consolidated.  Anyone who has consolidated and is losing their grace period, have you found out whether you can get a deferment or forbearance while studying for the bar?

[jdmba2007]

You can never "completely count on" a deferment or forbearance. It is based on the invidual circumstances. However you could apply for a bar loan if you are really broke at the time. Many large law firms will also help you out financially during this period.