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Good Resources for Loan Consolidation?

Discussion in 'General Residency Issues' started by BassDominator, Apr 22, 2004.

  1. BassDominator

    BassDominator Senior Member
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    Anybody know of good websites or other sources to read up on the topic? Any suggestions of good companies to consolodate/refinance with? Any personal tips?
     
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  3. Krafty

    10+ Year Member

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    During our exit interview Sallie Mae was trying to sell us on their stuff. Basically their deal was:

    0.25% Off for automatic debit
    1% off rate after 33 consecutive payments
    -and then some (I don't remember the rest, it wasn't that much tho).

    My friend found this company though, that if legit (aka federal consolidator) ...check this

    www.educationalloancompany.com

    0.5% off of your rate for automatic debit
    1% off of your rate after 24 consecutive payments

    Seems like the best deal out there, unfortunately I have not seen the fine print. Some of the questions to be asked is
    -Does forbearance forfeit the benefits?
    -Is economic hardship deferment possible (w/o forfeiting benefits)?
    -What are the fees?
    :confused:

    Check them out and post you you find something. :thumbup: / :thumbdown:
     
  4. beriberi

    beriberi Senior Member
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    Our school recommends T.H.E. Their "bonus" is 0.75%, but it kicks in immeadiately. They say that this saves you more money over the life of the loan. Also, if you miss a payment, you get the bonus back as soon as you are paying again.

    www.northstar.org
     
  5. BassDominator

    BassDominator Senior Member
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    Thanks, guys.

    Krafty: It doesn't seem like the site you suggested charged any fees. I vaguely remember hearing that you can't charge an origination fee on loan consolidation. Anyone know if this is true?

    Beriberi: The calculators on that site were very helpful.

    I'm no wizard at math. Can someone come up with some formulas to compare deals like these?
     
  6. BassDominator

    BassDominator Senior Member
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    Okay, I did some math to compare the deals. I have way too much time on my hands right now. Here we go:

    I have about $100,000 in loans and plan to make standard monthly payments of $1000/month. Assuming an interest rate of 4%, I calculated the time it would take me to pay off different consolidation options:

    Sallie Mae (discounts: 1% after 33 mos, 0.25% autodebit)
    117 monthly payments @ $1000
    1 final payment of $351

    American Loan Company (1% @ 24 mos, 0.5% autodebit, 0.6% grace during period)
    114 monthly payments @ $1000
    1 final payment of $830

    Northstar (0.75%)
    117 monthly payments @ $1000
    1 final payment of $410

    Email/PM me and I will send you the Excel spreadsheet I used to do these calculations.

    I've never heard of American Loan Company. Anyone know if they are reputable?
     
  7. frog4brooke

    frog4brooke Member
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    This is correct. Federally mandated that there are no origination/application fees.

    There was an interesting discussion on consolidation and deferement about a month ago. May want to do a search.

    F4B

    Found it:
    http://forums.studentdoctor.net/showthread.php?t=111356&page=2&pp=20&highlight=loan+deferment
     
  8. southerndoc

    southerndoc life is good
    Physician Moderator Emeritus Lifetime Donor Classifieds Approved 10+ Year Member

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    See the financial aid forum. There are a ton of resources and message threads about loan consolidation. I mentioned a few points in some of those messages that you should really listen to (looking for the interest rates the last of May, borrow benefits, etc.). Check it out.
     
  9. BassDominator

    BassDominator Senior Member
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    Thanks, southerndoc. I don't know how I missed the financial aid forum.... didn't find any useful threads there at the moment, though.
     

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