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[millingroark]

Does anyone know a lot about student loans

Comments

[potteba]

To Consolidate means to combine multiple loans into one larger loan. They usually take the average of the loans' interest rates and lock that in so that it doesn't vary based on the federal rate, and if you sign up to have the payments auto-debited out of a checking account they'll usually give you a .5%-1% discount. I bet the 5% loans you took out were a combination of subsidized and unsubsidized loans (Perkins, etc.) (the subsidized ones are the one's the govt. will pay the interest on while the are deferred). I would try to consolidate that 5% set if they let you...assuming there is more than one loan in that bundle

[juvu]

Consolidating means that instead of making payments to each different lender, the loans are put together under one lender, and you only have to make one lump payment to one lender per month. (It makes it easier, and some say it can save you money).

I'm a little confused about why they would make you pay until the election. Do you know what kind of loan it was? (Federal, PLUS, private, etc.?) Generally, if it's a Federal loan, it means that it's still an 8% loan, but you pay 5% of that, and Uncle Sam takes care of the other 3% (I believe). Then again, if it's a private loan, the terms are a little more in favor of the lender, and they have the control to pull bullshit moves like say, making you pay the 8% interest.

You should definitely consolidate if you can, and if making the $300 payments is going to be impossible, then you can apply for forbearance, which should lower your payments for a certain moment in time without adversely affecting your credit score.

Hope this helps?

[millingroark]

This is so helpful! How are y'all so smart about this??