Law School Discussion

Consolidate Your Student Loans NOW... Rule Change

midjeep

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Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #10 on: June 01, 2005, 11:54:30 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.

Thanks for the detailed response. Could this be a loop hole: Since I am already making payments, couldn't I technically consolidate the loan THEN obtain the deferred status and keep the 6 month grace period? Just wondering....

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Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #11 on: June 01, 2005, 12:15:17 PM »
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.

Thanks for the detailed response. Could this be a loop hole: Since I am already making payments, couldn't I technically consolidate the loan THEN obtain the deferred status and keep the 6 month grace period? Just wondering....

Given that you've already been paying, you should have already used up your 6 months... I don't think they give you another 6 months, but you could call and find out...

Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #12 on: June 01, 2005, 08:15:10 PM »
this is correct. you will not get another six months

lisa

Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #13 on: June 02, 2005, 08:06:44 PM »
Consolidate 'em, that's what I was told by the Fin Aid counseler

Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #14 on: June 03, 2005, 07:07:37 AM »
i think mine are 2.75...hmmmph

Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #15 on: June 03, 2005, 09:06:01 AM »
 :-* never say good mathmetician

or speller


Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #16 on: June 11, 2005, 11:42:05 PM »
i think mine are 2.75...hmmmph

that's right.  Actually, I think it's 2.77 if you want to be EXACT about it Maka.

Sheesh.............i still love ya  :-*.

consolidation involves finding the weighted average of your existing student loans (in the case 2.77 as you mention) and then rounding UP to the nearest 1/8 of 1%. The rate will be 2.875%

Of course most lendors will give you a .25% break for automatic payment and a 1% break after 36 months of on time payments.

2.875 - .25 = 2.625% for 36 months then 1.625%!


Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #17 on: June 12, 2005, 07:12:06 PM »
i sure hope they give me that int rate break....i did direct loans though....we shall see!  :D

Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #18 on: June 14, 2005, 12:01:10 AM »
i sure hope they give me that int rate break....i did direct loans though....we shall see!  :D

I believe the feds (http://www.loanconsolidation.ed.gov/borrower/brights.shtml) will give you  the .25% discount for automatic payment but not the 1% break for 36 months of on time payments. good luck!

Re: Consolidate Your Student Loans NOW... Rule Change
« Reply #19 on: June 14, 2005, 10:10:05 PM »
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