loan consolidation

[chicubs1116]

Hey I am a fourth year medical student right and am looking around at different loan consolidation plans. I was wondering what others have come upon. The best I have seen so far is from UHEAA, Utah Higher Education Assistance Authority, where they take 1.25% off for direct deposit payments and another percent off after 48 on-time payments. I was wondering if anyone else has had any experiences with them.

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[bluejay68]

That seems like a great deal for the direct deposit reduction - most seem to only offer a 0.25% reduction, and the most I've previously found is a 0.5% reduction from "Educational Loan Company", which has better terms than Sallie Mae and other large lenders, but I am weary of trusting them (https://secure.educationalloancompany.com/consolidationloans.asp)

I have no experience with this UHEAA, but their website looks helpful. I assume that you don't need to have anything to do with Utah to use them to consolidate loans. The 48 months of payments before the additional reduction is on the long side (I've seen 24 months), but I'd say the direct deposit benefit outweighs this.

 

[double elle]

a guy from graduate leverage came to our school to talk to us about consolidation. It was amazing. www.graduateleverage.com

Their history is on the website and it's pretty interesting. Essentially, it'a a bunch of Harvard MBA students that did research on graduate student loan consolidation....and found out some 'interesting' things. So, they started a business to help grad students consolidate - finding the best company with the best rate. You give them your info (as you would a loan consolidation company) - they access your loan history and then contact you with what companies would be compatible with your situation...

It doesn't cost the student a thing...the loan companies actually pay them for your business. They can also negotiate good rates/benefits because they are dealing in 'bulk'....say, if they have 100 students who want to consolidate - they contact a company and say that they have that many borrowers who wish to consolidate. If the loan company wants that business, they give a little. Anyway, I've already had to contact them a couple times regarding things....consolidation, deferrment, etc...and someone from there CALLS YOU RIGHT BACK.

So, if you want to consolidate on your own...that's fine...you can still contact them for information about overall consolidation and deferrment while in residency. good luck

 

[TigerPath05]

Does anyone know if you can consolidate & still qualify for forbearence or economic hardship deferrment? Someone told me that consolidation is considered a repayment option and that may negate doing economic hardship deferrment.

Thanks!

 

[prominence]

Does anyone know if you can consolidate & still qualify for forbearence or economic hardship deferrment? Someone told me that consolidation is considered a repayment option and that may negate doing economic hardship deferrment.

Thanks!

bump

 

[Hercules]

bump

That's pretty impressive to bump a post after less than 1 hour, prominence.

 

[fourthyear]

YES, you can consolidate and still apply for economic hardship deferment and forbearance. In fact, I recently found out you can even defer after you've started paying - you can stop the payments, defer temorarily, then resume your repayment plan when either your deferment runs out or when you want to resume paying - whichever comes first. So even if you HAVE entered a repayment term on a consolidated loan, you can still apply for deferment or forbearance and put your payments on hold without any bad credit marks or any extra fees (other than accruing interest on unsubsidized loans during your deferrment time)

Another misconception is that by consolidating you spread your payments over 30 years (this part is true), instead of the usual 10 for standard repayment, which some people think will make it more difficult to qualify for economic hardship deferment b/c now your monthly payments are lower for the 30 year vs 10 year term - NOT true...qualifying for economic hardship is based on your monthy payments due for a standard 10 year term (even if you are consolidated to a 30 year term they still use the 10 year figure to decide your debt:income ratio monthly) Also, your spouse's inocme is never considered in your debt:income ratio to figure hardship, so even if your spouse makes a 6 figure salary, you may still qualify for deferrment.

There is really no reason not to consolidate.

 

[PTP]

What about the period of time you can defer repayment once you consolidate? For example, I heard that you can defer for 3 years before you consolidate and then another 3 after you have consolidated? Versus if you consolidate from the get-go then you can only defer for 3 years and if you want longer to begin repayment then you have go into a forbearance?
Any truth to this?

 

[Mirror Form]

Hey I am a fourth year medical student right and am looking around at different loan consolidation plans. I was wondering what others have come upon. The best I have seen so far is from UHEAA, Utah Higher Education Assistance Authority, where they take 1.25% off for direct deposit payments and another percent off after 48 on-time payments. I was wondering if anyone else has had any experiences with them.

Are you sure about those numbers? Getting 2.25% taken off for your borrower benefits sounds WAY to good to be true! Especially considering that you can lock in stafford loans at 2.875%. That means your loans would be at 0.625%!

I would bet that either your numbers are wrong or those guys aren't legit. Who is UHEAA? Be advised that "borrow benefits" aren't transferable if your loans are sold. So they could offer you that deal, and then just sell your loans after your 4 years of time payments. Then you'd lose your 2.25% reduction, and there'd be nothing you could do about it.

 

[Mirror Form]

a guy from graduate leverage came to our school to talk to us about consolidation. It was amazing. www.graduateleverage.com

Yeah, graduate leverage impressed me too. I planning on signing up with them.

Although, one thing about them kind of bothers me. What's in it for them? How is that group making a profit? I realize that they're students, and therefore getting to give speeches and whatnot is great for their resume's. But I'm a little worried that they might actually be making money off of this somehow w/o disclosing their methods. Maybe they get a finders fee from the lender they pick or something. Regardless, I still think that they'll us get the best loan consolidation deal possible. Groups rates are always better

 

[double elle]

Yeah, graduate leverage impressed me too. I planning on signing up with them.

Although, one thing about them kind of bothers me. What's in it for them? How is that group making a profit? I realize that they're students, and therefore getting to give speeches and whatnot is great for their resume's. But I'm a little worried that they might actually be making money off of this somehow w/o disclosing their methods. Maybe they get a finders fee from the lender they pick or something. Regardless, I still think that they'll us get the best loan consolidation deal possible. Groups rates are always better

The consolidation company gives them a 'finders fee'...

 

[Mirror Form]

The consolidation company gives them a 'finders fee'...

Aha, that makes sense. So while Graduate Leverage is getting it's people a great deal, they're only going to work with companies who will give them a finders fee. That could explain why they won't go through a company like UHEAA, which was mentioned above. Although, can anybody consolidate with UHEAA? Or do you have to have gone to school in Utah?

As far as UHEAA goes, I looked at their website and emailed a guy and the numbers are correct. They seem legit too, although it's hard to tell for sure. One thing that I really liked about graduate leverage was that they guaranteed us to avoid most of the pitfalls. For example, they make the lender sign a contract saying that they can't sell our loans, that they must give us the interest rate at the time they receive our application, etc....

 

[chicubs1116]

Yeah I looked into further and you don't have to be a Utah resident. I agreee with the above post that the deal sounds to good to be true, hence why I put it up for disccusion, but if they can really offer what it sounds like they are offering it would be a great deal. The thing I think I need to ask is for a sample contract or something like that to see if there is any fine print. The other problem is I gradaute this year, but are school does not offically gradaute us till middle of June, which alllows for like 2 weeks to try to consolidate, so I have to see if they can do all the paperwork in that amount of time.

 

[rhinosp_33]

it is my understanding that all consolidation contracts are the same. they are a form contract written by the government. if you look at them, you'll notice that they don't include the incentives on the contract --- you have to take their word for it, or else have a written documentation from the company. i've asked for contracts from multiple lenders and they are all the same. if someone else had a diff expereince, please share.

you make a very important point regarding the timeline post graduation before consolidation. heres the deal... you have to MAKE sure that the lender gurantees the consolidation rate prior to july 1st, even if it may take you longer to get the paperwork done. some places say they promise the rate by date application is recieved.... again, get official confirmation on this. also, if you have a complicated package (2step - one lender type of deal) it will take longer.

uheaa seems legit... they are a state lender. however, their customer service doesnt seem to be too keen.

 

[Mirror Form]

Yeah I looked into further and you don't have to be a Utah resident. I agreee with the above post that the deal sounds to good to be true, hence why I put it up for disccusion, but if they can really offer what it sounds like they are offering it would be a great deal. The thing I think I need to ask is for a sample contract or something like that to see if there is any fine print. The other problem is I gradaute this year, but are school does not offically gradaute us till middle of June, which alllows for like 2 weeks to try to consolidate, so I have to see if they can do all the paperwork in that amount of time.

I got some more info on UHEAA and found out what the catch is: they don't re-amortize your loan! That means, that they calculate your minimum monthly payment based on 2.875% and never decrease it. So you end up turning a 30 year loan into a 22 year loan with a much better interest rate. It's still a pretty good deal, but I think I'll stick with graduate leverage since they offer re-amortization, and therefore lower monthly payments when I'm young and need the cash. Plus, we'll do much better in the long run investing our extra money then using it to pay off these 2% loans faster.

 

[Mirror Form]

it is my understanding that all consolidation contracts are the same. they are a form contract written by the government. if you look at them, you'll notice that they don't include the incentives on the contract --- you have to take their word for it, or else have a written documentation from the company. i've asked for contracts from multiple lenders and they are all the same. if someone else had a diff expereince, please share.

That's why I like graduate leverage. They make sure that the lender they contract with guaratees all the perks in writing.

 

[Hercules]

That's why I like graduate leverage. They make sure that the lender they contract with guaratees all the perks in writing.

Since my loans are Direct Loans, I'm leaning towards keeping it simple and consolidating with the government. Anyone else doing the same, or have you guys found alternatives too good to pass up?

 

[spikyhairedgirl]

Since my loans are Direct Loans, I'm leaning towards keeping it simple and consolidating with the government. Anyone else doing the same, or have you guys found alternatives too good to pass up?

If your loans are only with Direct Loans, you (legally) have to consolidate with them . That's what the financial aid people told us. The big thing is to consolidate with Direct Loans now and you'll still get to keep your 6 mo grace period which means you don't have to worry about the pesky deferrment paperwork until October. Also, if you only have Direct Loans, you can consolidate over the phone, which takes like, 10 minutes.

 

[kristing]

What about the period of time you can defer repayment once you consolidate? For example, I heard that you can defer for 3 years before you consolidate and then another 3 after you have consolidated? Versus if you consolidate from the get-go then you can only defer for 3 years and if you want longer to begin repayment then you have go into a forbearance?
Any truth to this?

I know you can defer/forbear for three years without consolidating. And then consolidate. I don't know about the other way around...

 

[spikyhairedgirl]

I know you can defer/forbear for three years without consolidating. And then consolidate. I don't know about the other way around...

For each loan you have, you can take up to 3 years of deferment for economic hardship. By consolidating you're essentially creating a new loan, for which you get 3 years.
Some people in longer residencies may benefit from holding off on consolidating so they can take 3 years of econ hardship with their current loans, and then consolidate and get 3 more years of a hardship deferment. There's no time limit on how long you can forebear for regardless of whether you're consolidated or not.
If you're in a longer residency or plan on doing a fellowship, essentially you have to make the choice of consolidate now and lock in a super low interest rate for the entire life of your loan, then in 3 years forebear that loan or start paying it back and living a little (or a lot) leaner. Or you can defer for 3 years on your current loans, consolidate in 3 years (which may have a much higher interest rate that you lock into), defer your now-consolidated for another 3 years and then start paying it back 6 years from now.
The big gamble on waiting 3 years to consolidate is the potential for the interest rate to get a lot higher than it is currently, which means you could end up paying a lot more in the long run.

 

[tufts_anes]

If your loans are only with Direct Loans, you (legally) have to consolidate with them.

Can anyone confirm this? So we can't use either UHEAA or Graduate Leverage to consolidate? That would be a shame...

 

[GeneGoddess]

If all of your loans are held with Direct Loans, you MAY consolidate with another company. It's the only company where this applies, and it is because DL is the US gov't. The same does not apply if you have all loans held by another single lender.

FYI, UHEAA is great, but they don't reamoritize (which can save you money, but your payments are not lower). Also, there is a risk that you could lose you 1.25% reduction if something happens with your automatic bank draft. Call and ask them about that (if I transfer banks, etc, and I must pay via check once, will I still get the 1.25% reduction?).

 

[turtle md]

A rep came to our school too. I thought it was a good deal, so signed up with them. But I am trying to qualify for a mortgage and the only way is if I can show all my loans are in deferment. Grad Leverage made no follow-up on my application (basically just left me hanging for a few months). I decided in the interest of time to pull my application with them and use one called Doctor's Debt, Rx. They were much much much more responsive. Given my time frame, that was what was most important to me.

 

[GeneGoddess]

A rep came to our school too.

From UHEAA? Or Graduate Leverage? Always good to hear potential negatives about consolidation companies...

 

[kas23]

Can anyone confirm this? So we can't use either UHEAA or Graduate Leverage to consolidate? That would be a shame...

This is not true. If all of your loans are from Direct Loans, you may consolidate with anyone including the Easter Bunny AFTER you graduate. However, if you have not graduated yet, you can only consolidate with DL.

 

[Goose...Fraba]

this may seem dumb....

but can you or should you consolidate while your still in medical school, or should you wait untill right after you graduate? I guess it wouldnt make sense to consolidate while your still taking out more loans right?

I give up, Im just going to buy a nice double wide trailer when I graduate and just live there untill all my loans have gone bye bye ....... what, Im serious! Dont know what the wife will think bout that though......

Goose

 

[Lefty]

As far as I understand you cannot consolidate your med school loans as long as you are still taking out loans and are not preparing to pay them back/apply for forbearance or economic hardship. I am about to graduate and I have been told by multiple sources (our school's fin aid dept, various consolidation companies, my lender, and other students) that I can't actually consolidate until after graduation. If your in my situation you have from graduation until July 1st to lock in the low rates available now before they change.

 

[DRealDrZ]

So if I were to consolidate with say Graduate leverage...what would be my next step to defer due to economic hardship? Do I do it through them? Do they do it as well?

 

[ORS]

I plan to consolidate with Key Bank. This is where I got my loans from. They are offering 5% capital reduction (but you have to start repayment now). Hope this helps!

 

[kas23]

From what I have heard, all loan consolidation companies are the same in terms of the interest rate they can offer. This interest rate is determined by the federal T-bill interest rate (which is adjust yearly July 1st, hence the absolute need for people to consolidate before then) and the weighted averages of your current loans and their individual interest rates. The consolidation companies will only differ in the little bones they hand out, like an interest rate reduction for automatic withdrawl and consecutive on-time payments. And as stated above, these are not gauranteed if the consolidated loan is sold off, which many of smaller companies may and will do. One Sallie Mae rep once told me that a plumber (not to knock plumbers) with enough money could buy out your loans, consolidate them for you, then turn around and sell it to the highest bidder to turn a profit. That is why you have to beware of these smaller companies. With that said, go with a well-reputed company that has been around a long time and that has a great track record for customer service.

And in terms of consolidating while still in school, it can be done. It has been done by people on this board and I know people personally that have done it. However, your loans must be from Direct Loans and you can only consolidate (now) with Direct Loans. This may be desireable for current 3rd years to lock in a good rate before July 1st rolls along.

For me, I am going to consolidate with Sallie Mae. They are well-known and I really don't want to screw around with my debt.

 

[Lefty]

So if I were to consolidate with say Graduate leverage...what would be my next step to defer due to economic hardship? Do I do it through them? Do they do it as well?

Actually, you wouldn't consolidate with Graduate Leverage. They are a referral company. You would go through them to match you up with what they percieve as the best deal for you. They do this at no cost to you b/c they get a finder's fee from whomever they refer you to.

Once you consolidate you have 6 months of a grace period before you have to defer due to economic hardship (or start paying back loans). If you consolidate during your grace period that can lower your interest rate from 3.375% to 2.875%. HOWEVER, you need to check with the lender who you consolidate with regarding their fine print. Apparently some companies will offer you certain perks (like reduction of 1% after 24 or 36 months of on-time payments) ONLY if you don't defer during your grace period. This really doesn't work in your best favor. Furthermore, you want your lender to hold your economic hardship deferment until the end of your grace period before it starts.

If you like Graduate Leverage you should go to their site and watch their 10 minute tutorial on medical loan consolidation. It is really informative.

For me, I am going to consolidate with Sallie Mae. They are well-known and I really don't want to screw around with my debt.

I will probably end up with Sallie Mae also. They are one of my original lenderes. Plus they are very well-established, have good customer support, and have a great internet site to track payments, etc. I don't want to consolidate with a company that kicks over before my 30 years are up. Also I don't want to go with a lender who will just end up selling my loans to someone else who will bend me over on interest rates in the future (which could happen if the lender you go with goes out of business and has to sell your loans). But for now I am still researching lenders and have requested a consult from Graduate Leverage to at least see what they recommend.

Lefty

 

[impetigo]

Thanks for all the helpful replies.

Apparently some companies will offer you certain perks (like reduction of 1% after 24 or 36 months of on-time payments) ONLY if you don't defer during your grace period.

Any one know if UHEAA has this sort of policy regarding any of their incentives (1% after 48 payments, 1.25% with DD)? And how long they've been around? As a State organization and with those great incentives, I can't see any reason to go with anyone else to consolidate...

 

[Mman]

this may seem dumb....

but can you or should you consolidate while your still in medical school, or should you wait untill right after you graduate? I guess it wouldnt make sense to consolidate while your still taking out more loans right?

I give up, Im just going to buy a nice double wide trailer when I graduate and just live there untill all my loans have gone bye bye ....... what, Im serious! Dont know what the wife will think bout that though......

Goose

Not a dumb question and in fact probably a very wise idea. It's my understanding that you can consolidate your loans up to this point and lock in with the current interest rates. Then next year you can get a separate consolidation for your fourth year loans (at a almost guaranteed higher rate than now). Either that or you can get a whole new consolidation of your 4th year loans and your first 3 year loans at some weighted average interest rate between the 2.


But I know this depends on which school you are enrolled at. I don't remember the terminology, but not all schools are direct lending schools. Ask your fin aid office.

 

[Goose...Fraba]

Allright now Im really gonna look like a idoit.......

When I take out loans I apply for the federal subsidized, and unsubsidized direct loans, but last year my school mentioned something about Wells Fargo coming in, and now our loans now go through Wells Fargo. What the hell does this mean?, and can I still consolidate now?, and consolidate through another company like some of the ones listed above? And if I consolidate now, I assume I have to start making payments, or am I still in deferment untill I graduate?

I wish I had a huge trust fund or a rich uncle somewhere.......
Goose

 

[chicubs1116]

Thanks for all the helpful replies.



Any one know if UHEAA has this sort of policy regarding any of their incentives (1% after 48 payments, 1.25% with DD)? And how long they've been around? As a State organization and with those great incentives, I can't see any reason to go with anyone else to consolidate...

If you look at the first post I described what UHEAA has to offer but I do not no how long they have been around or their reputation that's why I asked orginally, but the more I look into it their deal seems to be the best as long as your okay with them not reamoritizing your loan.

 

[Anxiolytic]

Okay just in case this has been answered already, I didn't really read all the posts, you want to consolidate now b/c interest rates will go up next time they are due (late summer or so).
I really don't know anything else. We sort of aren't allowed to consolidate with anyone but the government b/c our financial aid people are super protective of us. I am also at a state school so I am less than 100K in debt which kicks ass.



I have a fever for more cow bell.

 

[pht2c]

Okay just in case this has been answered already, I didn't really read all the posts, you want to consolidate now b/c interest rates will go up next time they are due (late summer or so).
I really don't know anything else. We sort of aren't allowed to consolidate with anyone but the government b/c our financial aid people are super protective of us. I am also at a state school so I am less than 100K in debt which kicks ass.



I have a fever for more cow bell.

if you have less than 100k in debt you might not qualify for economic hardship deferment...

 

[kas23]

if you have less than 100k in debt you might not qualify for economic hardship deferment...

Here is a great, quick-and-dirty resource to see if you qualify for an economic hardship deferment:

http://www.salliemae.com/aamc

Have fun and try not to cry.

Websites like this one make me want to consolidate with Sallie Mae.

 

[impetigo]

Here is a great, quick-and-dirty resource to see if you qualify for an economic hardship deferment:

http://www.salliemae.com/aamc

Have fun and try not to cry.

Websites like this one make me want to consolidate with Sallie Mae.

Thanks, that's a great resource. I found I need to make less than $50,000 to qualify. I agree about the website, though, b/c that will make life much easier than using a company that is low-tech and has no website.

If you look at the first post I described what UHEAA has to offer but I do not no how long they have been around or their reputation that's why I asked orginally, but the more I look into it their deal seems to be the best as long as your okay with them not reamoritizing your loan.

Thanks, so it seems that you can defer and then get the great incentives. I searched google, wikipedia, etc, but I still don't understand what "re-amortizing" a loan means. Anyone know?

 

[cabby]

Thanks, that's a great resource. I found I need to make less than $50,000 to qualify. I agree about the website, though, b/c that will make life much easier than using a company that is low-tech and has no website.



Thanks, so it seems that you can defer and then get the great incentives. I searched google, wikipedia, etc, but I still don't understand what "re-amortizing" a loan means. Anyone know?

"re-amortizing" a loan means that the monthly payments get adjusted based on your new (lower) interest rate.

UHEAA does not do this. What UHEAA does is that they set what your monthly payment is without any incentives (example $500). Then they apply the incentives and calculate the new monthly payment ($400), but the minimum monthly payment does not change (must pay $500 every month. The "extra" $100 goes to paying off the principal.) What this all means is that you will end up paying your loan off sooner.

 

[golgi]

I have a good chunk of subsidized federal loans (as well as a humongous chunk of unsubsidized loans)...from what I understand we do not have to pay interest on our subsidized loans even during the 6 month grace period. However, once we consolidate does this mean that we lose out on the interest not accruing on the subsidized loans during our grace period (I am not deferring/forbearing)? I hope this isn't too confusing.

Thanks!

 

[deleted52758]

I. Consolidation Selection and Loan Terms:

If you decide to proceed with our recommendation, your consolidation will be completed through American Education Services (AES/PHEAA). AES is the non-profit state agency for Pennsylvania and manages more than $33 billion in total assets servicing nearly four million students. AES has been in business since 1964 and you can read more about their background at www.graduateleverage.com/aboutAES.html. All loans will be originated by US Bank and funded by GCO Education Loan Funding Corp.



We have negotiated terms on behalf of all graduate students in our reservation system. Collective bargaining has afforded us superior incentives and several terms in which no other lender was willing to offer. These terms include:

1% interest rate reduction after 20 timely payments and .25% reduction for electronic payments.
True Rate Reduction. Once your incentive is attained (reducing in-grace Stafford rates to 1.625%), your monthly payment will be reduced commensurately.
Guaranteed Grace Period. All eligible borrowers who sign their application before July 1st, 2005 will lock in the lowest rate and retain their full 6-month grace period.
Deferment Incentive Exemption: Borrowers who utilize deferment and forbearance will retain their timely payment status (for rate reduction).
Perkins/HPSL Rate Reduction. All Perkins/HPSL loans consolidated will be reduced to your prevailing Stafford rate. This will result in significant interest savings as Perkins/HPSL loans are fixed at 5.0%.
Loan Sale Restriction Side Letter. The lender has agreed to forgo the option to sell loans consolidated through our service. We think this is particularly important to ensure accountability and loan terms.
Borrower Benefit Contract. The lender agreed to legally restrict its ability to change any rate incentive achieved. Given this, you will have legal recourse if your rate incentive were removed. You can view the agreement at the following link: http://www.graduateleverage.com/gcoletter.pdf.


All negotiated terms are the result of feedback from our peers in an effort to ensure their loans will be consolidated in a straightforward manner. These terms represent considerable give on the part of the lender, and the last three are not available through any other program in the marketplace. Ultimately, the goal was to remove the risks associated with consolidation, while retaining the ability to lock in one of the lowest possible rates.

--------------------
what do you guys think? it seems like gl is going with a similar agency to UHEAA, which makes me think that if UHEAA is giving that much better discounts, it may be the way to go...

 

[argh]

The GL recommendation sounds a lot better to me than the UHEAA setup because AES is apparently agreeing to reduce the dollar amount of the monthly payments without changing total monthly payments. I think on one of the other loan consolidation threads it was revealed that UHEAA doesn't change the dollar amount of the monthly payment, but instead decreases the number of monthly payments you make (and thus increasing the amount of principal you pay off each month). The AES setup will increase the amount of money available to you each month, which you can turn around and invest with potential to compound your returns. 1.625% is a ridiculous loan rate. Even I can beat 1.6% return on investments, and I'm a financial *****.

 

[prominence]

what do you guys think? it seems like gl is going with a similar agency to UHEAA, which makes me think that if UHEAA is giving that much better discounts, it may be the way to go...

after initially filling out graduate leverage's online form, approximately how many days does it take to receive GL's recommendation via email?

 

[Mirror Form]

1% interest rate reduction after 20 timely payments and .25% reduction for electronic payments.
True Rate Reduction. Once your incentive is attained (reducing in-grace Stafford rates to 1.625%), your monthly payment will be reduced commensurately.
Guaranteed Grace Period. All eligible borrowers who sign their application before July 1st, 2005 will lock in the lowest rate and retain their full 6-month grace period.
Deferment Incentive Exemption: Borrowers who utilize deferment and forbearance will retain their timely payment status (for rate reduction).
Perkins/HPSL Rate Reduction. All Perkins/HPSL loans consolidated will be reduced to your prevailing Stafford rate. This will result in significant interest savings as Perkins/HPSL loans are fixed at 5.0%.
Loan Sale Restriction Side Letter. The lender has agreed to forgo the option to sell loans consolidated through our service. We think this is particularly important to ensure accountability and loan terms.
Borrower Benefit Contract. The lender agreed to legally restrict its ability to change any rate incentive achieved. Given this, you will have legal recourse if your rate incentive were removed. You can view the agreement at the following link: http://www.graduateleverage.com/gcoletter.pdf.

Awesome, so is it definitely confirmed that the perkin's rate reduction is being offered? If so, the Perkin's Rate Reduction is a great deal, and GL is definitely the way to go if you have any perkins loans. UHEAA is also good, but since they don't reamortize you're going to be paying a higher monthly fee. Over the long run you'll end up paying much less interest with them, but since the rates are so low anyway both loans end up being at below inflation. So I think it's nicer to be paying less during your residency (GL) instead of paying less over 25 years (UHEAA).

 

[PassinGas]

"GCO will not sell any Loans originated by Graduate Leverage to any unaffiliated third parties; provided, however, that certain lenders or trustees of GCO or its affiliates could, in a default situation, acquire the Loans as collateral and sell such Loans in the open market"

"so long as GCO or an affiliate of GCO continues to own any Loan originated by Graduate Leverage, GCO will continue in full force and effect, without modification, the borrower benefits"

The above two quotes are taken from the GCO letter mentioned in the above post. When the GCO letter mentions "a default situation," is that referring to a default of payment on the borrower's part or some other type of default situation? In other words, as long as the borrower doesn't default on payment of the loan, then GCO has put in writing that they won't sell the loan and that the borrower benefits would remain in full effect--is this a correct interpretation?

 

[deleted52758]

after initially filling out graduate leverage's online form, approximately how many days does it take to receive GL's recommendation via email?

it took about a month

 

[fuegofrio17]

So I think it's nicer to be paying less during your residency (GL) instead of paying less over 25 years (UHEAA).

I went thru the online application of GL/AES and they list their extended repayment plan as only being for 25 years also (not 30yrs). If this is true, will there be that big of difference in the monthly payments between the two companies? Anyone notice this detail (GL/AES 25 yr. loan instead of 30yr) and would like to comment?

 

[GeneGoddess]

I went thru the online application of GL/AES and they list their extended repayment plan as only being for 25 years also (not 30yrs). If this is true, will there be that big of difference in the monthly payments between the two companies? Anyone notice this detail (GL/AES 25 yr. loan instead of 30yr) and would like to comment?

It also varies depending on the loan amount. I have under $40K, so my max loan repayment period is 25yrs. My spouse has (well) over that, and his is 30yrs.

 

[impetigo]

"re-amortizing" a loan means that the monthly payments get adjusted based on your new (lower) interest rate.

Thanks for the info cabby.

I was looking on UHEAA's website and it lists a bunch of "partner lenders" that they use, but I'm wondering if anyone knows if UHEAA guarantees that they will not sell your loan off for the lifetime of the loan?

I'm thinking I may use UHEAA if they won't sell off the loan, but Sallie Mae is tempting because they offer decent incentives and would be convenient to use online.