Student Loan Consolidation: Who has the best PERKS?

[GeneGoddess]

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I'd like to consolidate, since I'm graduating this spring (finally!). I know all about grace periods and other things, but I'm looking for companies that offer the best PERKS (% off for automatic withdrawl, % off for on time payments, etc).

I know that T.H.E. Northstar is offering .75% off the total, and some company is offering 1% for 36mo ontime payments and .5% off for automatic bank draft.

Any other suggestions?

 

[jb2]

I graduate this spring also. Do you have to wait until graduation before you can consolidate loans or can I go ahead and submit the application now?

 

[GeneGoddess]

If you want to consolidate while in school, you can only go through the US Gov't (whose only perk is .25% interest reduction if you isgn up for automatic withdrawl).

If you wait until you graduate (rates change July 1, so watch for them), you can consolidate with anyone. And the best perks I've seen were 1.25% off for AW and then another 1% after 48 on-time payments.

COME ON! Can anyone beat that??? I've never seen a good comparisson website...

 

[rhinosp_33]

GeneGoddess..

please share which lender has that 1.25% off AW and 1% off after 48pays...


AES through Key's borrower benefits has 5% off principal if you meet criteria and then 0.25% off AW. see :
http://www.aessuccess.org/manage/consolidation/FederalConsolidation.shtml


people who have past experience, please share with us what details./ hidden charges to look for in these consolidation.. e.g. some places have interest capilitzation upon graduation vs do not, and it can mean a good chunck of money

 

[VitaminK]

When can we start our paper work on loan consolidation and deferment? I talked to a company representative last month and she said there wasn't anything I could do right now. Is that true?

 

[rhinosp_33]

If you want to consolidate while in school, you can only go through the US Gov't (whose only perk is .25% interest reduction if you isgn up for automatic withdrawl).

If you wait until you graduate (rates change July 1, so watch for them), you can consolidate with anyone. And the best perks I've seen were 1.25% off for AW and then another 1% after 48 on-time payments.

COME ON! Can anyone beat that??? I've never seen a good comparisson website...

GeneGoddess::
is that 1.25% off AW and 1% off 48 through UHEAA? if not, who was it?
if it was UHEAA, did you decide to go with them... and how was your experience, or what have you heard about them? so far that is the best deal i've seen (after extensive serach)... but I dont kno much about that comapny.

 

[tlew12778]

While perks are certainly something to consider, I think that a good customer service track record, easy online accessibility to your account, and the math (simply put) are more important. Regarding the latter, check your overall payout over 25 years and figure out who capitalizes their interest at the beginning of the month and who does it at the end of the month. When I shopped around, I found that the govt did it at the beginning of the month and it made a $15k difference on my total loan payout (on only $40k in principle).

I went with Sallie Mae in the end bc they offered the best interest rate as well as the best financing. I haven't had any complaints since my repayment started 2 years ago. Oh, one of their perks is a monthly drawing for something like $25k in loan forgiveness if you pay with auto-debit 😛 . They also give you a discount for paying with auto-debit but I don't remember what it is.

 

[mpp]

I think you must have calculated incorrectly. Technically it should'nt matter whether they capitalize at the beginning or the end of the month as long as the capitalization interval (1 month, 1 year, or whatever) is the same. If they capitalize at the beginning of the month then just make the payment at the beginning of the month; likewise if they do it at the end of the month.

The total payment could come out to a hundred dollars or so different (since you would have had the money 30 days longer) but not $15,000. Check your math.

 

[tlew12778]

OK maybe it wasn't $15k... more like $10k... I honestly don't remember bc it was so long ago.

I think the difference was due to how they capitalized the interest from my grace period. I honestly have no idea. All I remember is that my total payout with the dept of ed (calculated by them) and my total payout with Sallie Mae (again, calculated by them) was grossly different. And when I asked my mother, who is a CPA, about the difference, she said it was in the capitalization of accrued interest. Granted, she could have been wrong, but that still does not explain the large difference.

Regardless, I will reiterate my original point, that it's not only the perks that count.

One other thing, when I consolidated, SM actually held off my consolidation until the end of my grace period. They accepted the application during my grace period, but did not cut the check to my original lender until it was over.

 

[EvilNewbie]

BUMP... I would like to know what the best consolidation is as well...