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Author Topic: How to Consolidate Your Loans While Still in School!  (Read 3767 times)

jdmba2007

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Re: How to Consolidate Your Loans While Still in School!
« Reply #20 on: June 19, 2005, 12:40:50 PM »
Time is running out to consolidate... You only have until the end of this month

http://jdmba2b.blogspot.com/2005/05/important-news-for-those-with-federal.html

jdmba2007

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Re: How to Consolidate Your Loans While Still in School!
« Reply #21 on: June 20, 2005, 11:55:59 PM »

maney

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Re: How to Consolidate Your Loans While Still in School!
« Reply #22 on: June 23, 2005, 08:54:08 PM »
I consolidated my fed loan and locked in a rate of 1.82%. Some places were trying to sell me 2.875%.

furher

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Re: How to Consolidate Your Loans While Still in School!
« Reply #23 on: February 23, 2006, 06:01:00 PM »
Watch it. That link that was provided said that if you are a current student and consolidate now, you will lose your 6 month grace period. It made it sound like you will have to start paying as soon as school ends instead of giving you 6 months after graduation. That could be a big deal depending on your situation.

Another disadvantage of consolidating is that you may be able to bankrupt your student loan 7 years after the first payment became due. But a loan consolidation may start the 7-year time period running again. Moreover, if you are considering challenging the loan, a consolidation loan may waive some defenses if you later contest the loan in court. If you believe you may be going to court to fight against a loan, or are considering bankruptcy, you should consult a lawyer before applying for consolidation.

Another disadvantage of consolidation is that while you cure the default by consolidating a loan, your credit continues to show that at one point you were in default. If you "rehabilitate" a loan instead, any reference to the default is removed. Also after consolidation collection fees become part of the loan principle.

Finally, borrowers may have more opportunity to compromise the amount owed on old loans than on a consolidation loan. To compromise the amount owed means you negotiate repayment of lower amount than the total owed. However, this usually requires a lump sum payment of a major portion of the loan. Most lower income people cannot afford the lump sum payment.

tzsch

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What happens if your loan goes into default?
« Reply #24 on: February 26, 2006, 01:01:52 AM »
Depending upon the terms of your loan if you miss one or more payments on your loan and you do not have a deferment or forbearance, your loan may be considered in default. This may happen before or after it is transferred for collection or sold to another lender. Regardless of when it happens, however, your loan will usually go to the following places.

First, your loan will be sold to the state or private guaranty agency that acts as the middle man for your loan. If there was no state or private guaranty agency for your loan, it will usually be sold directly to the United States Department of Education.

Second, the guaranty agency may transfer for collection or sell (see above) your loan to the United States Department of Education. Similarly, the United States Department of Education may transfer for collection or sell your loan to the state guaranty agency. This can go back and forth several times.

Third, as if that weren't confusing enough, either the guaranty agency or the United States Department of Education can transfer your loan for collection to a servicing company. Often, the United States Department of Education and guaranty agencies use the same servicing companies, so you might receive notices from the same servicing company about different loans.

da

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Re: How to Consolidate Your Loans While Still in School!
« Reply #25 on: February 27, 2006, 11:41:46 PM »
Last posts on this thread very informative ..

tommy

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Re: How to Consolidate Your Loans While Still in School!
« Reply #26 on: June 05, 2006, 08:08:37 PM »
Consolidate now! Interest rates will shoot up on July 1!

lor

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