How does student loan consolidation work?

[geldrop]

Anyone know? If i consolidate my student loans, can i reconsolidate it after med school? Or do i have to wait to bundle them all together later?

Also supose you consolidate it at 3% interest rate, and then in 4 years the fed reserve raises the interest rates to 10%. So this means banks could be lending money and gettting 10% but instead they are locked in at 3%. That would really suck for the bank becuase they'd be losing about 7%. Why are they all so willing to take this risk? If i was the bank I don't know why I'd want to offer fixed rates at 3% when in another few years its liable to go up.

---

Members don't see this ad.

 

[Brewster]

My understanding is that you can consolidate what you have now and then reconsolidate after med school. Your after med school consolidated interest rate would be a weighted average of what you consolidate now and what you are consolidating then.

 

[KyGrlDr2B]

Too serious for lounge-goers....moving to financial aid.

 

[birdie]

Can we consolidate anytime, or is consolidation only allowed after one finishes school? Any advantages to waiting until med school is done? (which would be 2007 for me )

 

[KyGrlDr2B]

This may answer your question: Consolidate loans

 

[XCanadianRagwee]

I think you have to learn how to canoe first before you consolidate...

 

[DrQuinn]

Originally posted by XCanadianRagwee
I think you have to learn how to canoe first before you consolidate...

Funny Funny Funny!

Where are you on SDN? I've never seen your posts.

I think I'm in bisexual love.

Q

 

[XCanadianRagwee]

Originally posted by QuinnNSU
Funny Funny Funny!

Where are you on SDN? I've never seen your posts.

I think I'm in bisexual love.

Q

I'm a Lounge Lizard. That's where all the fun stuff is. Can't have fun on the other forums without getting chewed out.

You can always search my my useless posts...

 

[Skylizard]

Originally posted by birdie
Can we consolidate anytime, or is consolidation only allowed after one finishes school? Any advantages to waiting until med school is done? (which would be 2007 for me )

I vaguely remember during my F-Aid exit interview at med-school that with consolidation you can extend deferment. Thus you try and wait on the consolidation to increase the total amount of post med school deferment time while in residency.

 

[Jim Picotte]

You're allowed a maximum of 3 years for Hardship deferment. When you consolidate your loans, it resets this 3 year limit so you can potentially get a maximum of 6 years of hardship. It's a bit different if you have a Stanford loan from 1992 or earlier. You can always do forbearance however even if you don't qualify for deferment and still can't pay the loans. Hardship deferment allows you to have all your subsidized loans interest continue to be paid for by the government plus the interest rate is the same as the grace/in school rate which is a little lower. I'm probably going to consolidate May 2004 unless it looks like the interest rates of loans will be the same or lower. I'm using hardship deferment right now and that will allow another 3 years so will bring me through residency. For my fellowship I'll either have to start paying or do forbearance for a year or two. It's also a good idea to try and pay at least the interest while in school. Up to $2500 is tax deductible and that loan amount doesn't grow on ya.

 

[Mutterkuchen]

Does loan consolidation through you into repayment? I will be an MS1 this year and have premed loans. Can I lock in the low interest rate now while still being deferred?

 

[Brewster]

Originally posted by JBJ
Does loan consolidation through you into repayment? I will be an MS1 this year and have premed loans. Can I lock in the low interest rate now while still being deferred?

You can defer and forbear on consolidated loans the same way you can on unconsolidated ones. You should contact the financial aid office at either your med school or your undergrad to discuss options.