Loan Consolidation?

[generic1]

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Anybody consolidate their loans during the grace period? Any advice such as what lender etc? Thanks

 

[daisy25]

Good luck on trying to consolidate your loans. I currently have Sallie Mae, and they said that for right now they are no longer consolidating. If you are doing a residency program, depending on your lender, you can defer your loans. Also, the Government just passed a new loan repayment program, called Income based repayment program (IBR). it was just in effect July 1st 2009. This program can lower your monthly payments based on your income if you can't get a deferment. You should call your lender and ask them about it.

 

[Lidopaine82]

I once heard loan consolidation can negatively impact credit scores. Is this true?

 

[NAVY DDS 2010]

I once heard loan consolidation can negatively impact credit scores. Is this true?

There is a difference between the loan consolidation services that keep you out of bankruptcy and loan consolidation of student loans. My wife and I consolidated her loans a few years ago. Our scores were still above 800 after consolidating the loans.

 

[Lidopaine82]

There is a difference between the loan consolidation services that keep you out of bankruptcy and loan consolidation of student loans. My wife and I consolidated her loans a few years ago. Our scores were still above 800 after consolidating the loans.

Thanks

 

[rambo2006]

I was told that ff u have plans on going into residency, don't let your lender know. Or else they wont consolidate ur loan, they will defer it, thus forcing you to keep a higher interest rate. Regardless of your plans let them know u graduated, consolidate, then call them back afterward and let them know you are back in school and of course prove it to them.


I don't know if this is completely accurate, can someone with personal experience comment further?

 

[DrTacoElf]

I was told that ff u have plans on going into residency, don't let your lender know. Or else they wont consolidate ur loan, they will defer it, thus forcing you to keep a higher interest rate. Regardless of your plans let them know u graduated, consolidate, then call them back afterward and let them know you are back in school and of course prove it to them.


I don't know if this is completely accurate, can someone with personal experience comment further?

Depends on what interest rates you are at. Currently and for the last 3 years it has been 6.8%. Consolidation in grace period has the benefit of dropping your rate like .25% I believe. The ideal situation is to consolidate and then defer but you might find you don't have time to consolidate before you defer as you can't consolidate when you are in school status.

You can only consolidate with direct loans (govt) these days.