1-16-17-32

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As everyone knows, interest rates are going up on July 1, and it would be quite advantageous to consolidate and lock in the rates before they jump. I have a couple of questions and ideas regarding this

1) If Icannot consolidate while you are still a full time student and in defferment, if I graduate on June 1, will I be able to consolidate my loans in time before the rates go up? How long does it take to complete the application process.

2) Assuming that I would not have enough time what about the following:
Right now my loans are in deferment since I am a full time student. However, my loans are scheduled to go into the grace period in the next month, even though I am still a full time student, since I didn't resubmit the paperwork for the deferment for this year yet. As soon as they go into grace, can I consolidate even though I really am a full time student, since they dont know I am? This way I will be able to consolidate in time before the new interest rates.

Any answes or comments are greatly appreciated.
 
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1-16-17-32

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Also, can I send in the application form now, even though I am a full time student, to consolidate for after I graduate?
 

GeneGoddess

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If you are CURRENTLY a student, you can only consolidate through Direct Loans (part of the US gov't). AFTER you graduate, you can consolidate with any FFEL lender. You should be able to consolidate with a FFEL lender between June 1 and July 1, but you can't apply "early" because they will reject your app. if you are still classified as a student.

Not sure about the second question and I wouldn't want to give you false info.
 

usfgator

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If you are a studnet, you can consolidate through any lender at any time if you have loans through more than one lender. However, if you only have loans through one lender then you have to consolidate through them as a student until you graduate. Only way you would have to consolidate through direct loans as a student is if they are your only lender. I have heard you can submit your form now to lenders for consolidation and tell them to hold on to it until you graduate. If you submit on june 1st, you should have enough time to consolidate before july 1st. I would just call them and ask these questions.
 

lightnk102

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can you consolidate more than once? I consolidated all my undergrad loans before i knew i was going to med school. Can I do it again and include my new loans in my old ones?
 

PassinGas

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Yes, you could reconsolidate if you are able to take your origional consolidation loan and reconsolidate it with new loans that you take out during med school. I am reconsolidating a Direct consolidation loan that I took out during med school with my 4th year regular medschool loans.
 

mpp

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Although you can't consolidate loans while you are in school (the loans must be in repayment or grace period to consolidate) you can pre-apply for consolidation so that everything is ready for you when you graduate and can switch over to the consolidation rate just before the rates increase. Ask your current lenders (or any lender of your choosing) if they will take a pre-application.
 
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Blade28

I have loans from multiple lenders while going through med school (Bank of America, Wells Fargo, Sallie Mae). Once I graduate in mid-May, who do I call to consolidate these loans?
 

mpp

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Don't wait until then. You can pre-apply right now. Any of the above lenders or anyone else that offers Federal Student Loan Consolidation. Just do a google search and find someone with good terms...just make sure it is federal student loan consolidatino.
 
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Blade28

Any suggestions on good companies that consolidate federal loans? I have no idea who does this kind of thing.
 

teamdick

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we had someone from aamc talk to us about this stuff:

you can only consolidate while in grace or repayment, however if you consolidate you lose the grace period, meaning you repay anywhere from 30-60 days after consolidation. You have to check with the lender, some places will consider the consolidation date as the date you submit the application, and others consider it the date the application is approved. Depending on how many loan companies you have this can take 4-6 weeks. If you only used one lender it obviously occurs quicker because verification is easier.

stafford loans are reconsolidated at a fixed rate. No loan company offers a better rate than another, just different perks, like skip a payment after 50 payments. in general the perks are designed for you to get back your loan disbursement fee which may or may not have been charged when you got your loan. we were warned to avoid these new companies b/c they can't give you a better rate and their reliability is not yet known.
 

kc123

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So, there is no disadvantage to consolidating and then reconsolidating?....I never consolidated my student loans from undergrad, because I had always heard people say that you can only consolidate once, and I knew I'd be going to med school.....Well, I guess it is too late now.....I only have $4,000 or so left in undergrad loans (I've been out of school for almost 10 years)....anyhow, just curious...Thanks!
 

LR4445

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1. Can this be done only once whether you go to grad school or not,
or can you consolidate once after undergrad and then again after med school

2. If someone plans to go to grad school, after a few years of graduation in undergrad, is it better NOT to consolidate, until after finishing grad school.
 

A.D.O.R.

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my situation is unique. i am currently a second year student who is taking a leave of absence for one year. as a result, i will be unenrolled and able to consolidate during the next couple months. my question is, should i max out this year's financial aid before consolidating or simply consolidate my current loans and then continue to live frugally during third and fourth year? does this make sense?