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Loan consolidation options


Senior Member
10+ Year Member
15+ Year Member
Oct 30, 1999
Evansville, IN. U.S.
I matched. Was not too worried, until about five minutes before noon. Now I am looking to consolidate my loans.
I have both Federal (Stafford Sub/Unsub) and Private Loans (MedCap/Wells Fargo).

The total amount of debt is: 150,000 for Federal
20,000 Private

Question #1: Would I be able to get Deferment? I think the only way I could was if my monthly loan payments were >20% of my gross monthly income. I believe the only way I would be able to make the payments high enough in order to qualify would be to consolidate at a 15 year repayment plan. Is this correct? Or would deferment really help me out much? Should I just go for the sure fire Forberance? Remember Forberance is very easy to get. Deferment is not.

Question #2: Many Loan Consolidators offer Interest rate reductions as benefits such as 1% interest reduction after 36 monthly payments on time and another 0.25% interest reduction with automatic checking withdraw. Many consolidators have footnotes or small print that says that these offers or benefits are subject to change without notice. I am aware that consolidators frequentyl sell the loan to another servicer and at that time the new servicer may not offer the same benefits.
Does anyone have any knowledge of this?



Senior Member
7+ Year Member
15+ Year Member
Mar 26, 2003
My guess is that you would qualify for Economic Hardship Deferment (there might be a 3-year limit, though, I'm not sure).

I don't know the exact formula, but I think if you add up your Stafford loans and the monthly payment is greater than 1/4 to 1/3 of your monthly income during residency, then you would qualify for EHD.

Here's a link to an EHD calculator from one loan company:

(Your loan company probably has its own form, but I believe the calculations are similar for most loan companies).

As far as private loans, I think they are much less flexible. I think you may have to start paying during residency, with few options for economic hardship deferment. (I would call the specific loan company to check on their terms).

Regarding your other question, I don't know what would happen if the loan company had an incentive, but then sold your loans to another servicer - would be interested if anyone else has info.
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