The options for students who consider to consolidate debt loans abound. Consolidate debt loans thru the U.S. Department of Education program would be the best option. Direct Consolidation Loans allow borrowers to combine one or more of their Federal education loans into a new loan that offers several advantages.
One Lender and One Monthly Payment: With only one lender and one monthly bill, it is easier than ever for borrowers to manage their debt. Borrowers have only one lender, the U.S. Department of Education, for all loans included in a Direct Consolidation Loan.
Flexible Repayment Options: Borrowers can choose from four different plans to repay your direct consolidation loans, including an Income Contingent Repayment Plan. These plans are designed to be flexible to meet the different and changing needs of borrowers. With a Direct Consolidation Loan, borrowers can switch repayment plans at anytime.
Standard Repayment Plan: You will pay a fixed amount each month until your loan(s) are paid in full. Your monthly payments will be at least $50 for up to ten to thirty years, based on your total education indebtedness.
Graduated Repayment Plan: Your minimum payment amount will be at least equal to the amount of interest accrued monthly. Your payments start out low, and then increase every two years for up to ten to thirty years, based on your total indebtedness.
Extended Repayment Plan: To be eligible, your Direct Loan balance must be greater than $30,000 and you will have up to twenty five year to repay your loan(s). You have two payment options:
Fixed Monthly Payment Option -You will pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50.
Graduated Monthly Payment Option – Your minimum payment amount will be at least $50 or the amount of interest accrued monthly, whichever is greater. Your payments start out low, and then increase every two years.
Income Contingent Repayment Plan (ICR): Monthly payments that are based on a borrowers annual income, Direct Loan balance and family size, and are spread over a term of up to 25 years.
No Minimum or Maximum Loan Amounts or Fees: There is no minimum amount required to qualify for a Direct Consolidation Loan! In addition, consolidation is free.
Varied Deferment Options: Borrowers with Direct Consolidation Loans may qualify for renewed deferment benefits. If borrowers have exhausted the deferment options on their current Federal education loans, a Direct Consolidation Loan may renew many of those deferment options.
In addition, borrowers may be eligible for additional deferment options if they have an outstanding balance on a FFEL Program loan made before July 1, 1993, when they obtain their first Direct Loan.
Reduced Monthly Payments: A Direct Consolidation Loan may ease the strain on a borrower’s budget by lowering the borrower’s overall monthly payment. The minimum monthly payment on a Direct Consolidation Loan may be lower than the combined payments charged on a borrower’s Federal education loans.
Retention of Subsidy Benefits: There are two (2) possible portions to a Direct Consolidation Loan: Subsidized and the unsubsidized. Borrowers retain their subsidy benefits on loans that are consolidated into the subsidized portion of a Direct Consolidation Loan.
Having the best information before you consolidate debt loans for students could do more good to you than not having known what your benefits are. Now you can say you are well informed and thus make an informed decision when you do consolidate debt loans.
CHiCKEN
May 28, 2009 at 9:54 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 28, 2009 at 10:32 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!
DIANA X
May 28, 2009 at 4:32 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.
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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.
Red
May 29, 2009 at 2:25 am
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.
ericacastanon81
May 29, 2009 at 6:12 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/
jj-85
May 29, 2009 at 5:05 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.
jocelynt27
May 29, 2009 at 9:28 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 30, 2009 at 7:01 am
crushqueen0204
May 30, 2009 at 12:28 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.