boring student loan repayment question

[aliDO]

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So, in a couple of weeks I will be done with six years of undergrad work (post bacc included). I will have about $20,000 in debt that I will have to start to repay and I'm not sure how this works. I'm applying this summer and *hope* to start school in 2009. so, do I need to consolidate these loans now while I'm repaying them over the next year? Will I be able to defer them again or will they need to be repaid during medical school? It kills be to think of all that interest building up! Any advice is needed!

 

[TexasTriathlete]

You can stay as a half-time student at community college or something. Loans will be automatically deferred. Or you can apply for deferment to whoever you are supposed to be paying your loan payments to.

 

[Razbrygrl3]

I'm not a lender nor am I an expert so just take this with a grain of salt. I think you can get a 6 months grace period on most loans before you have to start repaying them. If you can afford to start repayment during that year off, I would go ahead and do that. The sooner you start paying them off, the less interest you'll have to pay on them. And if you can, pay more than the minimum monthly balance. Again, you'll end up with less interest to pay and you'll pay them off sooner. As for deferring payments, it depends on what kind of loans you have. Some can be deferred once you're back in school and others can't. I'm more than likely going to defer my federal loans once I start in August, but my private loan can't be deferred. Sucks but the monthly payment isn't bad so I'm not going to lose sleep over it. Definitely talk to your lender about what options you have in terms of deferring and consolidating. Someone at the financial aid office of your post-bac institution can probably explain it all to you too. But your lender is definitely your best bet.

 

[aliDO]

Thanks for the info! Since I do have a year and a half at least before medical school I do want to restart paying them. I have a good job lined up that will be starting in early May so I won't have problems paying them for the next year. But, somebody told me once you consolidate that you can't defer anymore. Is that true? All of my loans are federal except for about $3,000. I'm not really worried about those as my husband will probably just go ahead and pay those off since the interest rate is higher. Basically, I just don't want to try to make things a little bit easier for a year by consolidating if it will make medical school hell by having to continue to pay them when I don't really have the money. Wow, I'm all over the place! I just have a slight heart attack every time I think about it! Also, is there a consolidation company that is better than others? All I know is I get about twenty letters a day from people wanted to consolidate my loans. Probably not a good sign.

 

[Punchap]

Thanks for the info! Since I do have a year and a half at least before medical school I do want to restart paying them. I have a good job lined up that will be starting in early May so I won't have problems paying them for the next year. But, somebody told me once you consolidate that you can't defer anymore. Is that true? All of my loans are federal except for about $3,000. I'm not really worried about those as my husband will probably just go ahead and pay those off since the interest rate is higher. Basically, I just don't want to try to make things a little bit easier for a year by consolidating if it will make medical school hell by having to continue to pay them when I don't really have the money. Wow, I'm all over the place! I just have a slight heart attack every time I think about it! Also, is there a consolidation company that is better than others? All I know is I get about twenty letters a day from people wanted to consolidate my loans. Probably not a good sign.

I was in the exact situation you are in for the 1.5 year gap...I consolidated my private loans and deferred my federal loans. I used Sallie Mae (sounds so nice, but she ain't)...I consolidated and was told that you could defer as long as you were attending school. It shouldn't be a problem for you, just read the fine print.

 

[aliDO]

I was in the exact situation you are in for the 1.5 year gap...I consolidated my private loans and deferred my federal loans. I used Sallie Mae (sounds so nice, but she ain't)...I consolidated and was told that you could defer as long as you were attending school. It shouldn't be a problem for you, just read the fine print.

Thanks! My private loan is from Sallie Mae and I know she ain't nice! I tried so hard not to go there but just needed a little extra. Since I only have that one private loan I'm not sure what to do. Can you consolidate private and federal loans together? did you defer you federal loans for over a year? I didn't know that was possible and if it is should I do that even though I will be able to make payments for the next year? And I do need to pay more attention to fine print. I'm bad about that!

 

[Punchap]

Thanks! My private loan is from Sallie Mae and I know she ain't nice! I tried so hard not to go there but just needed a little extra. Since I only have that one private loan I'm not sure what to do. Can you consolidate private and federal loans together? did you defer you federal loans for over a year? I didn't know that was possible and if it is should I do that even though I will be able to make payments for the next year? And I do need to pay more attention to fine print. I'm bad about that!

I believe you have to consolidate your federal and private loans separately, but I'm not 100% sure. Also, it's a good idea to pay on your federal loans if you can. You're making a good move there. With the federal loans, they allow a one-time, 12-month deferment for hardship. Now when you start back up at school, that will be categorized under a different deferment option. I hope what I'm telling you is correct, or else I'm screwed myself.

Good luck to you!

 

[aliDO]

I believe you have to consolidate your federal and private loans separately, but I'm not 100% sure. Also, it's a good idea to pay on your federal loans if you can. You're making a good move there. With the federal loans, they allow a one-time, 12-month deferment for hardship. Now when you start back up at school, that will be categorized under a different deferment option. I hope what I'm telling you is correct, or else I'm screwed myself.

Good luck to you!

Thanks so much for your help!

 

[Gpan]

I believe you have to consolidate your federal and private loans separately, but I'm not 100% sure. Also, it's a good idea to pay on your federal loans if you can. You're making a good move there. With the federal loans, they allow a one-time, 12-month deferment for hardship. Now when you start back up at school, that will be categorized under a different deferment option. I hope what I'm telling you is correct, or else I'm screwed myself.

Good luck to you!

If you can prove that you're in a economic hardship, the federal loans will be deferred more than 12 months. You just have to prove that your income is not enough to cover the payment, and fill out the application for deferment. I am already in the deferment period right now by doing just that. BTW in this deferment period, there is no interest because all my loans were subsidized ones.

 

[Krisss17]

Thanks for the info! Since I do have a year and a half at least before medical school I do want to restart paying them. I have a good job lined up that will be starting in early May so I won't have problems paying them for the next year. But, somebody told me once you consolidate that you can't defer anymore. Is that true? All of my loans are federal except for about $3,000. I'm not really worried about those as my husband will probably just go ahead and pay those off since the interest rate is higher. Basically, I just don't want to try to make things a little bit easier for a year by consolidating if it will make medical school hell by having to continue to pay them when I don't really have the money. Wow, I'm all over the place! I just have a slight heart attack every time I think about it! Also, is there a consolidation company that is better than others? All I know is I get about twenty letters a day from people wanted to consolidate my loans. Probably not a good sign.

No, you can defer consolidated loans (I speak from experience). Right now I have an in-school deferment as I attend nursing school, in the past I have had forebearances as well.

Keep in mind that when you are paying your loan during the interim before starting medical school, you can deduct the interest you pay up to I believe $2500.