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I have secured and unsecured student loans. Is consolidation ok?  

0
Hello,

I am considering debt consolidation, however, I have secured and unsecured student loans as well as $13,000 (approx.) in credit card debt. I am still not finished with school, so this is where the however comes in. I am wondering if I do debt consolidation for the unsecure portion of the student loan I owe already (I went to tech school... now I'm trying to get my degree at a credited University), will that prevent me from getting further loans to finish school?

Please help icon_smile.gif.

Thank you for your time.

Andrew
 

asked Jan 11, 2005 03:10 AM

Anonymous
Best Answer
7
best answer

You can go for Student Debt Consolidation.In the United States, federal student loans are consolidated somewhat differently, as federal student loans are guaranteed by the U.S. government. In a federal student loan consolidation, existing loans are purchased and closed by a loan consolidation company or by the Department of Education (depending on what type of federal student loan the borrower holds). Interest rates for the consolidation are based on that year's student loan rate, which is in turn based on the 91-day Treasury bill rate at the last auction in May of each calendar year.[citation needed]

Student loan rates can fluctuate from the current low of 4.70% to a maximum of 8.25% for federal Stafford loans, 9% for PLUS loans.Federal student loan consolidation is often referred to as refinancing, which is incorrect because the loan rates are not changed, merely locked in. Unlike private sector debt consolidation, student loan consolidation does not incur any fees for the borrower; private companies make money on student loan consolidation by reaping subsidies from the federal government.

answered May 12, 2008 11:45 PM

3 Answers

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Can anyone suggest good student consolidation programs?

answered May 14, 2008 09:10 AM

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Hi versiris,

Welcome to forums.


Quote:

I have secured and unsecured student loans


Student Loans are a different game altogether, and in very few cases, interest, late charges or penalties might be waived off.


Quote:
$13,000 (approx.) in credit card debt

Try Settling your debts , may be our "do it yourself" section will be of some help. If you need our special assistance you are always welcome.


Quote:
will that prevent me from getting further loans to finish school?

No, not at all.

Regards
Vikas

answered Jan 11, 2005 09:30 AM

0


Quote:

I am wondering if I do debt consolidation for the unsecure portion of the student loan I owe already (I went to tech school... now I'm trying to get my degree at a credited University)


From your post it is not clear that your unsecured student loan comprises of both Federal Student Loan and Private Student Loans.

However, if you have both the loans then I will suggest you to consolidate them separately.

Federal Student Loans (offered by Sallie Mae) are guaranteed loans and comes with some special benefits. If you consolidate Federal Loans along with Private Student Loans then you will miss the benefits of the Federal one.

If debt due to unsecured Private Student Loan is creating pressure on your purse then you can always opt to consolidate them. This will help you to lower down your payments to the tune of 60% and only need to make a single payment instead of many.


Quote:
will that prevent me from getting further loans to finish school?


Opting for Debt consolidation will not affect you to access student loan in the future. But for this you should try to consolidate your unsecured Private Student Loans into a single one at an early phase because if such a debt accumulates to more than US$5000or 8% of your income then there remains a fair chance of default and a consequent negative effect on your credit.

Regards,
Phoenix

answered May 12, 2008 12:17 AM

Anonymous
1 

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