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NFT: Student Loan Consolidation is it worth it?

BigBlueDownTheShore : 9/29/2014 9:27 am
If so whats a good company to do so with? The only reason I have not done it yet, is because I have really good rates, since I went to school before Bush signed some new regulations that jacked the interest rates up. I really need the cash flow, so that is why I am considering it.
it worked for us  
mattlawson : 9/29/2014 9:32 am : link
ours I think is through ACS - but we locked in a very, very low rate several years ago
Do you own a home?  
pjcas18 : 9/29/2014 9:38 am : link
I opened a HELOC for a variety of reasons and paid my student loans with it, the HELOC interest is tax deductible.

If that can work for you there is no downside I'm aware of as long as you can make the payment. Obviously rather default on student loan than HELOC.

The HELOC payments are tied to prime, and you only HAVE to pay the interest while the HELOC is open and then you get 20 years or something.

Mine was paid off in a year or so and closed, because it was short-term need, but IMO it's a better option than consolidation for the tax deduction.

If you don't own a home then it would depend on the rate and how much your saving (not just monthly, but overall)
What company do you currently have servicing your Student loans?  
Gmen703 : 9/29/2014 9:41 am : link
If you have loans prior to the Bush rate hikes (I'm assuming these are federal loans [FFELP or DL]), then your rates are reset each July 1st. It really depends on your situation. If you consol, then you rates are weighted-avg and rounded up to the nearest 1/8th, I believe.

You can do a wait and see approach. Wait until Mid-May to see if rates are going to increase/decrease July 1st and either consol. or hold off. No need to give the govt any more of your hard earned money via interest payments.

As far as companies, it can be a crapshoot. I say if you're happy with your current loan company, then consolidate through them since they have all your loan information on file.
I have Perkins loan through my school  
BigBlueDownTheShore : 9/29/2014 9:53 am : link
They use mycampusloans.com, I have another through Department of Education, and my last one is through a company called AES (aessuccess.com).
And I do not  
BigBlueDownTheShore : 9/29/2014 9:53 am : link
own a home, mostly because money goes in one pocket out the other. Its very difficult to save.
i consolidated my loans with a very low interest rate  
sshin05 : 9/29/2014 9:58 am : link
a few years back. And i'm almost done. You should do it if you can get a rate lower than your paying now. Don't sacrifice short term for long term in my opinion.
Perkins loans  
Gmen703 : 9/29/2014 10:17 am : link
Have certain benefits attached to it that you can lose through consolidation (e.g. loan balance forgiveness).


I would start by crunching the numbers. Hit up the https://www.nslds.ed.gov/nslds_SA/ to check on your loan balances & interest rates.

Perform a simple weight-average calculation ((loanbal1*IntRt1 + loanbal2*IntRt2...)/(totalloanbal)). Round that percentage up to the nearest 1/8th of a percent.

There's no cost to consolidate (thank God!). But you may pay more interest over the life of the loan. Again, the servicer is up to you. Many moons ago, I worked for an 'evil' student loan originator/servicer.
RE: Perkins loans  
Gmen703 : 9/29/2014 10:24 am : link
In comment 11889611 Gmen703 said:
Quote:
Have certain benefits attached to it that you can lose through consolidation (e.g. loan balance forgiveness).


I would start by crunching the numbers. Hit up the https://www.nslds.ed.gov/nslds_SA/ to check on your loan balances & interest rates.

Perform a simple weight-average calculation ((loanbal1*IntRt1 + loanbal2*IntRt2...)/(totalloanbal)). Round that percentage up to the nearest 1/8th of a percent.

There's no cost to consolidate (thank God!). But you may pay more interest over the life of the loan. Again, the servicer is up to you. Many moons ago, I worked for an 'evil' student loan originator/servicer.



Also, your newly consolidated loan repayment term will depend upon your total outstanding loan balance. Typically, it will be a 10-yr (120 month repayment); however it can be as long as 30 years. I'm not up to speed on the latest and greatest student loan laws. However, the longer term would most likely lower your monthly payment but increase the overall interest repaid to the servicer.

I actually know something about this  
81_Great_Dane : 9/29/2014 12:28 pm : link
because my wife works for a student loan consolidation service. I say "service" because they're not a lender - for a fee, they figure out what program suits you best, then handle the paperwork and negotiations with the government and your current lenders.

If you have Federal student loans, there are a bunch of recently enacted government programs that might benefit you. There are loan forgiveness programs, public-service relief programs... actually quite a wide array of programs to reduce your payments and possibly get you loan forgiveness.

What you qualify for and what you might save depends on what kind of loans you have, your income, number of dependents, what you do for a living. It's kind of complicated, actually. That's why there are companies to do the legwork for you.

If you have the time and energy you can enroll in these programs yourself, but it's like the difference between hiring a tax preparer and doing your taxes yourself. You pay someone to do your taxes and they save you time and get you a bigger return than you would do yourself. However: Do not sign up with a service that attaches a "low monthly fee" to the entire life of the loan. You'll end up paying thousands in unnecessary charges over the life of the loan. My wife's company charges an up-front fee, gets you set up on your new loan, and then you're done with them.

I won't name my wife's company here, but if you're interested, write back and we'll figure out a way for you to check them out.

RE: I actually know something about this  
BigBlueDownTheShore : 9/29/2014 12:33 pm : link
In comment 11889841 81_Great_Dane said:
Quote:
because my wife works for a student loan consolidation service. I say "service" because they're not a lender - for a fee, they figure out what program suits you best, then handle the paperwork and negotiations with the government and your current lenders.

If you have Federal student loans, there are a bunch of recently enacted government programs that might benefit you. There are loan forgiveness programs, public-service relief programs... actually quite a wide array of programs to reduce your payments and possibly get you loan forgiveness.

What you qualify for and what you might save depends on what kind of loans you have, your income, number of dependents, what you do for a living. It's kind of complicated, actually. That's why there are companies to do the legwork for you.

If you have the time and energy you can enroll in these programs yourself, but it's like the difference between hiring a tax preparer and doing your taxes yourself. You pay someone to do your taxes and they save you time and get you a bigger return than you would do yourself. However: Do not sign up with a service that attaches a "low monthly fee" to the entire life of the loan. You'll end up paying thousands in unnecessary charges over the life of the loan. My wife's company charges an up-front fee, gets you set up on your new loan, and then you're done with them.

I won't name my wife's company here, but if you're interested, write back and we'll figure out a way for you to check them out.


Definitely interested. You want to email be at theBACreturns@gmail.com
Giving your email to the missus.  
81_Great_Dane : 9/29/2014 12:36 pm : link
She will write to you with her company name.
If you have good interest rates then it may not make  
eclipz928 : 9/29/2014 12:56 pm : link
sense to consolidate. First thing you should try is working with your current loan lenders. Call them and ask them if they can restructure your loan in order to make smaller monthly payments. Lenders always want to keep a responsible borrower as a customer so they generally will show a lot of flexibility.

If for some reason they're unwilling to restructure ask for a period of deferrment and concentrate on paying off your high interest loan during that time. The bottom line is that you should do some basic math before making any decisions to determine what make sense for you financially both short and long term. But regardless, I'd say that if you have a loan with an interest rate under 3.5% you should stick with that lender.
SoFi  
GP : 9/29/2014 2:45 pm : link
Anyone refinance with them? Any stories one way or the other? Primarily I'd be interested in lowering my interest rate; currently at 6.5% (or is it 6%, don't remember exactly) fixed with Fed Loan.
RE: SoFi  
BigBlueDownTheShore : 9/29/2014 3:54 pm : link
In comment 11890077 GP said:
Quote:
Anyone refinance with them? Any stories one way or the other? Primarily I'd be interested in lowering my interest rate; currently at 6.5% (or is it 6%, don't remember exactly) fixed with Fed Loan.


Just got of the phone Great Dane's wife, and she got me a 5% interest rate on all my loans and if you do an automated payment they drop it almost a full point.
81greatdane  
MookGiants : 9/29/2014 4:01 pm : link
can you shoot me an email, mookgiants@gmail.com. I personally don't have any need to consolidate but I know my sister in law has been exploring her options
Networking is  
ctc in ftmyers : 9/29/2014 4:13 pm : link
great, isn't it?

One of the great things about BBI.
RE: I actually know something about this  
Fleabassing : 9/29/2014 4:18 pm : link
In comment 11889841 81_Great_Dane said:
Quote:
because my wife works for a student loan consolidation service. I say "service" because they're not a lender - for a fee, they figure out what program suits you best, then handle the paperwork and negotiations with the government and your current lenders.

If you have Federal student loans, there are a bunch of recently enacted government programs that might benefit you. There are loan forgiveness programs, public-service relief programs... actually quite a wide array of programs to reduce your payments and possibly get you loan forgiveness.

What you qualify for and what you might save depends on what kind of loans you have, your income, number of dependents, what you do for a living. It's kind of complicated, actually. That's why there are companies to do the legwork for you.

If you have the time and energy you can enroll in these programs yourself, but it's like the difference between hiring a tax preparer and doing your taxes yourself. You pay someone to do your taxes and they save you time and get you a bigger return than you would do yourself. However: Do not sign up with a service that attaches a "low monthly fee" to the entire life of the loan. You'll end up paying thousands in unnecessary charges over the life of the loan. My wife's company charges an up-front fee, gets you set up on your new loan, and then you're done with them.

I won't name my wife's company here, but if you're interested, write back and we'll figure out a way for you to check them out.


Would you mind passing along my info as well? yougotbrizzled@gmail.com

Thank you
greatdane  
GP : 9/29/2014 4:24 pm : link
.. if you would be so kind - g54p@live.com
greatdane - hit me up  
armstead98 : 9/29/2014 4:36 pm : link
armstead98@gmail.com

thanks!
SoFi  
Tonyo33 : 9/29/2014 4:50 pm : link
I used Sofi to consolidate all my graduate loans, and ended up cutting my payments by 30%. There were 5 options to pick from, and the documentation that was asked for was reasonable and easy to provide.

The process was simple, and the people that I spoke with were great. I'm a big fan of using them.
I am giving your addresses to my wife.  
81_Great_Dane : 9/30/2014 1:37 am : link
.
81_Great_dane  
Matt M. : 9/30/2014 2:29 am : link
Add me to the list: Millerme23@yahoo.com.
Great Dane  
illmatic : 9/30/2014 2:29 am : link
if you don't mind tossing my email into the list, it's nyg4rings@yahoo.com

Thanks.
I have forwarded your emails.  
81_Great_Dane : 9/30/2014 8:44 pm : link
If you end up happy with the result, spread the word. We think she works for a good company that is really helping people.
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