Law School Discussion

Consolidate Your Student Loans NOW... Rule Change

Consolidate Your Student Loans NOW... Rule Change
« on: May 31, 2005, 11:02:51 PM »
A Must read on a recent rule change from the Dept of education:

http://xoxohth.com/thread.php?thread_id=191039&mc=18&forum_id=2

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Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #1 on: June 01, 2005, 12:44:16 AM »
Hey i am a little confused about this. My loans are on deferment right now. So would i still be able to consolidate and continue to keep my loans on deferment?

Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #2 on: June 01, 2005, 06:35:21 AM »
yes, i believe you have to put them in immediate repayment then another deferment.  I've read over everything I've gotten from my loan co. and the only drawback I see for me (in school deferment I can't ever spell deferment) is that I give up my 6 month grace once I graduate...that means I have to start paying this January.  Not sure what to do. 

Trel

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Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #3 on: June 01, 2005, 10:13:09 AM »
I've thought about this...but I only have 8k in undergrad loans and I'm not so sure it's worth giving up the 6 month deferral after I graduate LS.  Anyone else out there have a tiny amount of loans and making this decision?

midjeep

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Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #4 on: June 01, 2005, 10:43:03 AM »
I've thought about this...but I only have 8k in undergrad loans and I'm not so sure it's worth giving up the 6 month deferral after I graduate LS.  Anyone else out there have a tiny amount of loans and making this decision?

Yeah I am curious about this too. I only have $5K in loans from undergrad. Also, I graduated May 04 and have been making payments already, how do I defer the loan again? What do I need to do to prove that I am going to law school to qualify for the deferral?

Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #5 on: June 01, 2005, 10:53:23 AM »
I have about 40k....yikes...and since half of then are Direct Loans, I consolidated with Direct Loan Servicing and get to keep my grace period (so they say).  That should run out in June of '06 and I hope to start LS in August '06 so I can defer again! 

If you consolidate now the first payment isn't usually due for 45-60 days (so August).  I suppose you could make the first payment and then apply for an in school deferment.  Although, I bet you could just ask the co. you coonsolidate with.....

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Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #6 on: June 01, 2005, 11:08:47 AM »
yes, i believe you have to put them in immediate repayment then another deferment.  I've read over everything I've gotten from my loan co. and the only drawback I see for me (in school deferment I can't ever spell deferment) is that I give up my 6 month grace once I graduate...that means I have to start paying this January.  Not sure what to do. 

Wow, so no grace period. That 6 months grace period would be beneficial to the many people who wont have jobs at graduation. We never know how that job situation is going to work out. So I guess that I am on the fence with this one.

Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #7 on: June 01, 2005, 11:17:49 AM »
yea, Sallie Mae said I would have to give up the grace period...Direct Loan Servicing said I could keep it (or it says that on their website) I guess I will see once the application is processed.  That six months is important...I have a job (for three years now) so it is more important for traditional students...

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Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #8 on: June 01, 2005, 11:36:03 AM »
I've thought about this...but I only have 8k in undergrad loans and I'm not so sure it's worth giving up the 6 month deferral after I graduate LS.  Anyone else out there have a tiny amount of loans and making this decision?

Yeah I am curious about this too. I only have $5K in loans from undergrad. Also, I graduated May 04 and have been making payments already, how do I defer the loan again? What do I need to do to prove that I am going to law school to qualify for the deferral?

Two things:

(1) Given that you have only 5k in loans, you probably don't care too much, but the main reason to consolidate now is to lock in your interest rate.  With the incentives lenders offer, you can lock in for UNDER 2%.  This is less than the cost of inflation, meaning that your money would be, in essence, free money.  But you'd have to consolidate NOW, or else the rate will jump up July 1 when the federal student loans are reindexed.

(2) To get the in school deferral, you need to contact your lender (if you have consolidated, it will be tne lender with whom you consolidated your loans; if you have not consolidated, it will be the people at Direct Loans).  They will give you a form, which you take to your school.  The school fills out the form and returns it to your lender, and you're set.  You may have to make one extra payment or something due to the turn around time of the processors, but that's it.  Submit the form, and you're done.

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Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #9 on: June 01, 2005, 11:39:05 AM »
yes, i believe you have to put them in immediate repayment then another deferment.  I've read over everything I've gotten from my loan co. and the only drawback I see for me (in school deferment I can't ever spell deferment) is that I give up my 6 month grace once I graduate...that means I have to start paying this January.  Not sure what to do. 

Wow, so no grace period. That 6 months grace period would be beneficial to the many people who wont have jobs at graduation. We never know how that job situation is going to work out. So I guess that I am on the fence with this one.

Yep--it's a big deal to give up your deferment.  Though I consolidated my loans through CFS PRIOR to the expriation of my 6 month deferment period (almost 2 years ago now), and they didn't make me start paying until those 6 months were up, so maybe it CAN be done... Call CFS and check it out.  (www.CFS.com)

Hope this helps!