Help with Student Loan consolidation. Who to turn to?

[Demeter]

I have over a 100K debt from Dental School which have been consoliated at a low interest rate (maybe 2.9%)
Now I will start a residency program in the Northeast and will need another 150K-200K. So,...
1) should I consolidate my new loans with the old loans? old loans have a very low rate and new loans will have a very high rate.
2) should I just keep the old loans at their current rate and pay of the new/higher loans first?
3) will i need different lenders to consolidate?

thanks. Demeter.

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[3rdMolarRoller]

First off, you can't consolidate more than once so your original stays where it is.

For example, you are at 2.875% on loan one and want to consolidate loan 2 which, lets say, is 4%

So you will have one consolidation but two different rates: Rate one at 2.875% and rate two at 4%. This is a good thing because your original loan will not accrue more interest.

 

[magicrat]

it depends on the repayment plans and who your origonal consolidation is through. I found this website called theLoanster.com who have answered a lot of my questions

 

[morgantaylor]

Here is how I understand things, although I could be wrong.......

Although you could consolidate you new and old loans, you most likely would not want to. The current and future rates probably aren't going to be less than 2.9%. If you would consolidate at a higher rate, it would be an average of the 2.9 and whatever the new rate is; i.e. a higher rate.

Each year, the new rate goes into effect on July 1. However, you can find out what the rate is going to be a couple of months prior to determine whether you should consolidate your new loans or wait and hope things go down the next year.

If you only have 1 lender, you have to consolidate with that lender. However, if you have multiple, you can consolidate with whomever you wish.

I have been working with graduate leverage. They have been EXTREMELY helpful. I would recommend contacting them with the same questions you posted here.

Good luck!

I have over a 100K debt from Dental School which have been consoliated at a low interest rate (maybe 2.9%)
Now I will start a residency program in the Northeast and will need another 150K-200K. So,...
1) should I consolidate my new loans with the old loans? old loans have a very low rate and new loans will have a very high rate.
2) should I just keep the old loans at their current rate and pay of the new/higher loans first?
3) will i need different lenders to consolidate?

thanks. Demeter.

 

[DrTacoElf]

Do not consolidate because if you do that 100K at 2.9% will increase to the weighted average of 2.9% and the new rate.

 

[toothart]

You should definitely consolidate any FEDERAL Loans, your private loans will be harder to consolidate because not many banks do this. The Federal loan rate IS going up this summer from the current 4.7%. President Bush is expected to pass a new law that will fix the rate at around 8.5% sometime in the near future but not before July 1st. And contrary to popular belief you can absolutely consolidate previously consolidated FEDERAL Loans, the new rate would be averaged. Again this only applies if you have FEDERAL loans, private loans are rated differently and are harder to consolidate.

Regards

 

[magicrat]

Does GL realize that all Federal loans will be at a set rate beginning next year? July 1st, from here on out, will mean nothing as the loans rates are fixed. The direct program is being phased out. Demeter, if your loans are consolidated through the direct program and you currently have loans that are not part of the original package. I believe you consolidate again through direct, then when you graduate you consolidate through a ffelp provider as they have borrower benefits that will bring down your interest rate. This way you have the best of both worlds,...you protect your grace period which will save you 6 months of interest and you collect ffelp benefits later. You will defer the original loans while in school, which is good because you'll need that to counter the higher rates in the new loans when they go to weigh your loans. This is how theLoanster.com states to do it. They actually toild me to go to the direct program instead of signing me up with their program. Over the life of my loan this action will save me approximately $1000 per every $50000 borrowed.

 

[magicrat]

In addition, today,...one of the houses of congress eliminated the single holder rule with the expectation that the other will as well. This is supposed to take effect the 1st of July. I expect you will see price wars for consolidation in the near future. Though it appears the Democrats have offered a proposal that would make consolidation more expensive for the lenders. I really don't understanf this item though