To start, make a list of all your loans, the names of your lenders, the interest rates on each of you loans and debts, the amounts you owe on each of those debts and loans, and the amounts of your monthly payments on each of you loans.
If you make this list in such a way that it is formatted for you to easily see those numbers/amounts, you can readily determine how much you are paying monthly at the moment.
By now you should be able to determine if what you are currently making (income) can meet your monthly payments. If not, there are other options. Like, get another job, a part time job to augment your finances. Or think of other sources of income. If that one is not possible, and your actual payments exceed what your monthly budget is, then probably it is time to consider about School Consolidation Loan.
A school consolidation loan can be easily obtained. But, always shop around for the best- meaning, which program that can reduce your monthly payment and also reduce your interest rate.
The best school consolidation loan is the one that is from the federal government programs. If you go to the website of the US department of Education you can find a lot option on which you like and which type of loan program that suits you and where you can qualify. To name a few, Direct Consolidation Loan which I think is the best. So try going through the Federal Consolidation Loan Program.
You can also make your application online.
Always bear in mind that if you do a school consolidation loan during the grace period, you can lock in an interest rate that would be at least half percent lower than the current repayment rate. There are also a lot of lenders that provide discounted rate if you sign up for their electronic payment program and make a consistent on time payments for some period of time that will specify.
Some programs grants some immediate payment relief if you ask for deferment or forbearance.
Reminder: When filing out a school consolidation loan application, always make sure you have all the necessary documents and fill up everything that is needed to be filled to avoid delays.
To lessen your burden and to simplify your debts and school loans, and get it more manageable, take a school consolidation loan.
But before getting into these programs, be sure to do a due diligence or research in finding the right company to handle and negotiate your loan. This would make save more money by reduce interest payments and avoid the other pitfalls of a school consolidation loan.
CHiCKEN
May 16, 2009 at 9:48 am
I did. You can usually get a much better (and fixed rather than variable) interest rate that way. I am not sure what the cons are, I only know the pros.
writersblock
May 16, 2009 at 10:33 am
The answer will depend on something that I can't predict, and that is whether or not the loan has already been disbursed. I'm going to guess that the Department of Education isn't quite efficient enough to have already disbursed a loan that you signed for on Friday, but in this age of electronic money transfers, who knows?
I would definitely recommend that you call the DOE very first thing on Monday morning, but all you can do right now is keep your fingers crossed.
Good luck to you – I hope it works out!
crushqueen0204
May 17, 2009 at 8:28 pm
Student loans are eligible for consolidation, and usually have more favorable interest than you will get any place else. Why not try a car loan to just finance the car and consolidate the student loans – those will have longer payment terms, even 30 years, so the payment are the lowest you can get. Capital one is a good place for people with lower credit scores to get a car loan. Go to the capital one web site and check out what they offer for your car.
jj-85
May 17, 2009 at 10:01 pm
Most likely. But it would have been better to consolidate all the loans at once so as not to incur the origination fee. It's much better to consolidate your loans for a number of reasons. If you get into trouble (or just behind) with your loans, it's better to have one loan instead of a dozen.
DIANA X
May 17, 2009 at 11:08 pm
Nowadays, many people can get into a bad credit situation if they do not keep track of their income and expenditure. Many young executives suddenly find that they are being offered credit cards by various companies. Those who are sensible will find a credit card that suits their needs, sign up, keep track of their purchases pay off their credit card bills in full each month, and ignore offers from other companies. There are others who may be dazzled by all the credit on offer and will end up with credit cards from several companies. They may easily end up making lots of purchases on credit while making the minimum payments on their cards.
http://best-loans.awardspace.com/Loan-Consolidation.htm
Then, one day they realize just how much debt they are in when they need a debt consolidation loan to get out of a bad credit situation. At the Debt Consolidation and Debt Reduction Service, we do not give you debt consolidation loans. We help you reduce your debts by 40 percent to 60 percent and your payments by 40 percent. We see to it that you pay no interest late fees, or penalties. We get you out of debt, and out of a bad credit situation, within three years. We ensure that you receive no more harassing phone calls from creditors by negotiating with them.
ericacastanon81
May 18, 2009 at 8:11 am
Usually there are not incentives beyond the amount of money you'll end up saving. Before you graduate you should have to undergo an "exit interview" for your loans, and they give you a lot of information there. If you don't want to wait that long, sometimes the financial institutions that you are borrowing from will have information, so try asking them directly.
The government also offers advice and services here:
http://www.loanconsolidation.ed.gov/
Red
May 18, 2009 at 5:33 pm
They sent me (and still do actually) plenty of offers. Like you, it was not a company that I had any experience with. No one used it, so I elected to go with Sallie Mae, as my loans had already been sold to them, and their consolidation rates were the same (this was back in 2003). If I were you, I'd stick with Sallie Mae. Though I haven't heard anything bad about Educational Direct, I haven't heard anything good either…and unknowns with something this important are a bit scary to me.
jocelynt27
May 18, 2009 at 10:44 pm
It is usually a few days to about a few week process, depending on if everything was done online or if you had to mail some paperwork. I would be concerned.
Is there a reason you chose to consolidate with a lender instead of Direct Loans? If you have already signed for the paperwork with the lender, then you will need to consistanly call and keep on top of them until the process is complete.
I would also check out how reputable the lender is. It seems that everyone is in the student loan consolidation business these days. Lenders like Sallie Mae, Chase, PNC, CitiBank, Teri Loans, Wachovia, SunTrust these are are all reputable lenders.
Good luck!
Michael
May 19, 2009 at 6:55 am