T.H.E. confusion

[DOmaybe]

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I am trying to help a friend decide on consolidating her loans.
She has like 57k in loans and is just finishing her first year of MD school. The whole loan thing has us There appears to be an origination fee of like $1500 to consolidate?? Also she said she had to sign a paper to start the repayment process now? Is there a way to defer payment until she is out of school? Also she said that the process would require her to start principal repayment as soon as she graduated and could not have a deferement then. Can anyone help me clear this up so I can help her relax so she can study instead of about the whole loan ordeal? 😉

 

[tinkerbelle]

I am trying to help a friend decide on consolidating her loans.
She has like 57k in loans and is just finishing her first year of MD school. The whole loan thing has us There appears to be an origination fee of like $1500 to consolidate?? Also she said she had to sign a paper to start the repayment process now? Is there a way to defer payment until she is out of school? Also she said that the process would require her to start principal repayment as soon as she graduated and could not have a deferement then. Can anyone help me clear this up so I can help her relax so she can study instead of about the whole loan ordeal? 😉

It all depends on who you consolidate with. THE/Northstar does not charge you any orgination fees or anything. It's one of the reasons they are popular... other lenders will charge you this fee. And yes, she can defer her consolidated loans until she finishes with med school. Have you read their website? It should answer all of your questions. Or you should call and talk to a rep. They are really nice and helpful.

 

[mpp]

However if all your loans are with one lender then you must consolidate with that lender. If that lender charges a $1500 fee, then you should calculate it out for yourself which would cost more. You'll have to guess at what future interest rates will be, however.

You can always defer while you are in school.

 

[mpp]

I posted a FAQ as a sticky thread in the financial aid forum. See if this helps.