consolidation question

[jjsmalls]

I recently graduated a post-bacc program, and will begin a DO program in August. I am planning on consolidating my current loans. Is it smarter to leave my subsidized stafford loans out of the consolidation, since the government pays the interest while in deferment?

Also, if anyone has any advice on which company is the best to consolidate with, that would be great. I am looking at AES, Sallie Mae, and Citibank right now.

Any info is appreciated.

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[tinkerbelle]

Actually, it's smarter to consolidate your subsidized stafford loans. The whole point of consolidatin is to lock in the low interest rate... it doesn't matter if the gov't is paying the interest for you now. When you finish school, you're going to have to pay the interest and you don't want to get study paying 8.25 % when you could be paying ~3% instead.

I am going to consolidate my undergrad/masters loans with T.H.E/Northstar (www.northstar.org). I've heard good things about them from other sdners.

 

[MadameLULU]

So y'all are consolidating your undergrad and masters loans before medschool? If we do, don't we have to start paying it back right away-- like during med school?
For some reason, I remember being advised not to consolidate until after my education was completed.

 

[tinkerbelle]

So y'all are consolidating your undergrad and masters loans before medschool? If we do, don't we have to start paying it back right away-- like during med school?
For some reason, I remember being advised not to consolidate until after my education was completed.

You can defer your loans while you are in med school, MadamLULU. That way you can lock in the low interest rates right now, yet you don't have to pay anything back until you graduate from med school.

Maybe you're thinking about consolidating Med School loans? I know a lot of med schools have the loan program where you actually *can't* consolidate your loans until after you graduate from med school.

 

[MadameLULU]

You can defer your loans while you are in med school, MadamLULU. That way you can lock in the low interest rates right now, yet you don't have to pay anything back until you graduate from med school.

Maybe you're thinking about consolidating Med School loans? I know a lot of med schools have the loan program where you actually *can't* consolidate your loans until after you graduate from med school.

No, i was talking about consolidating undergrad and grad school loans before starting medical school. Does interest accrue on those loans while we defer during med school?

Also, when we are done with medschool, can we combine our med school loans with the consolidated undergrad/grad loans? If not, we will be paying two huge payments, right?

 

[tinkerbelle]

No, i was talking about consolidating undergrad and grad school loans before starting medical school. Does interest accrue on those loans while we defer during med school?

All off my undergrad and grad school loans are either Perkins loans or subsidized stafford loans. These loans will acrue interest, but the government will pay it for you while they are in deferment. Now if your loans are unsubsidized, then yes, they will acrue interest and you get stuck paying it (despite the fact that the loans are being defered).

Also, when we are done with medschool, can we combine our med school loans with the consolidated undergrad/grad loans? If not, we will be paying two huge payments, right?

As far as I know, you can consolidate your consolidated loans with your med school loans (although depending on the interest rate in 4 years, you may not want to).

 

[box29]

All off my undergrad and grad school loans are either Perkins loans or subsidized stafford loans. These loans will acrue interest, but the government will pay it for you while they are in deferment. Now if your loans are unsubsidized, then yes, they will acrue interest and you get stuck paying it (despite the fact that the loans are being defered).



As far as I know, you can consolidate your consolidated loans with your med school loans (although depending on the interest rate in 4 years, you may not want to).

So, would it be wise to consolidate my unsubsidized staffords before July? I have about $104K unsub. ( $74K from 2 yrs at a podiatry program and $30K from 1st yr med school)? Can I do this and not touch the subsidized and Perkins?

 

[sparky5]

All off my undergrad and grad school loans are either Perkins loans or subsidized stafford loans. These loans will acrue interest, but the government will pay it for you while they are in deferment. Now if your loans are unsubsidized, then yes, they will acrue interest and you get stuck paying it (despite the fact that the loans are being defered).



As far as I know, you can consolidate your consolidated loans with your med school loans (although depending on the interest rate in 4 years, you may not want to).

I think you can only consolidate fed loans once over their lifetime so yes, it would be 2+ payments if you consolidate multiple times, but in the end you pay less if you lock in lower payments. I can't find the answer anywhere on the THE site about consolidating multiple time, maybe I will call them tomorrow to make sure.

 

[GeneGoddess]

You can consolidate multiple times as long as you have a NEW loan to add. The interest rate, though, would be a weighted average.

 

[mpp]

I posted a FAQ as a sticky in the financial aid forum about consolidation. See if this answers your questions.

 

[MadameLULU]

So, would it be wise to consolidate my unsubsidized staffords before July? I have about $104K unsub. ( $74K from 2 yrs at a podiatry program and $30K from 1st yr med school)? Can I do this and not touch the subsidized and Perkins?

why wouldn't you want to consolidate your subsidized loans? Like you said, i wouldnt touch the perkins

 

[GeneGoddess]

You do NOT have to consolidate ALL of your loans. You can consolidate some and not others. But I don't believe that you can have two sets of consolidated loans - like one "Perkins" and one "Stafford" (someone check on that).

 

[Chimera]

So I know that you can consolidation a second time if you have a "new" loan to add to the new consolidation, but what exactly is the definition of "new"?

Is it any federal educational loan that wasn't in the original consolidation, but was originated before the first consolidation application went through? Or does it have to be a loan that was originated after the first consolidation?

Thanks.

 

[mpp]

No. It can be any loan.

 

[californiasky]

Can anyone tell me a reason why one would not want to consolidate now?

 

[kas23]

Can anyone tell me a reason why one would not want to consolidate now?

In case rates go down any further.

 

[californiasky]

which probably wont happen

 

[kas23]

which probably wont happen

Wrong, which won't happen.

 

[MaxPower]

Just to be clear, if I consolidate now but have 3 more years of school left, I will have to start paying back the loans I consolidate. Then, 3 years from now (or whenever I can't defer my future Stafford loans any more) I can reconsolidate when interest rates dip?