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Federal and private loan consolidation questions

Date: Sun, 04/22/2012 - 18:52
Submitted by matto4785 on Sun, 04/22/2012 - 18:52
Posts: 5
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I have graduated and paying on my loans for close to a year now. I can make payments as they stand right now, but they chew up so much of my income that I don't have much left over. I am trying to save up to move since its way over due (I'm 27 now, but wasn't feasible until recently(finally got a decent job instead of 2 part time minimum wage ones like I had.)

I got notified about the special Federal consolidation program, that I am eligible. I've looked online but I have no idea what the differences or advantages are to consolidating my federal debt under the special program, or under the traditional one. I don't have a ton of federal debt to begin with, but if I can lower the total payments to them each month, its worth it to me. So what are the key differences and which would likely net me better savings per month?

Now the bulk of my debt is private. Something to the tune of $400+ a month. Not many places are consolidating private loans any more. I hear more and more that some places are actually nightmares to work with and borderline scams. Are there any reputable lenders offering private consolidation with a 25-30yr repayment term?

I understand lengthening the repayment term ultimately costs me far more in the long run, but I am just starting out in my career, my income is going to take a few years to rise to respectable levels. I am willing to do what I can now to lower my monthly payments as much as possible now, so that I can afford to get out on my own, and pay back more later on when my career is firmly established and my income is higher than when it was just starting out, like it is now.

Thanks for any help or advice you can give me.


CONSOLIDATE YOUR FEDERAL LOANS!!! It will lower your payment by allowing you to go income contingent or income based. They will take into account the payments that you are making on your private loans.

Wells Fargo is the only lender I know of doing private loan consolidations. They are difficult to get...you have to have stellar credit and a cosignor will help.


Submitted by SOAPLADY on Sun, 04/22/2012 - 20:30

SOAPLADY

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Which Federal program would you recommend? The normal one or the special one?

From the little I understand about them, the special program allows me to consolidate additional loans not normally covered. But i am not sure if i even have any of those loans.

Is there a place I can go to check what Federal loans I have?

Also, Wells Fargo was my primary student loan lender, I have the most debt with them. Would that affect my chances of getting a consolidation loan from them?

And finally, when I consolidate, do I need to provide a list of the loans I want consolidated? Or does the consolidator check my history and do it themselves?

Thanks so much for your help!


Submitted by matto4785 on Mon, 04/23/2012 - 03:27

matto4785

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Quote:

From the little I understand about them, the special program allows me to consolidate additional loans not normally covered. But i am not sure if i even have any of those loans.
You didnt list your lender so I wouldnt be able to tell you. However if you have been offered it, take it!

Quote:
Is there a place I can go to check what Federal loans I have?
http://www.nslds.ed.gov

Quote:
Also, Wells Fargo was my primary student loan lender, I have the most debt with them. Would that affect my chances of getting a consolidation loan from them?
It will probably help.

Quote:
And finally, when I consolidate, do I need to provide a list of the loans I want consolidated? Or does the consolidator check my history and do it themselves?
You have to do the grunt work...it is not their job to look up your loans.


Submitted by SOAPLADY on Mon, 04/23/2012 - 04:38

SOAPLADY

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Thank you for your help so far.

I have checked the Federal loan database and I have 2 loans, a Stafford Subsidized loan and a Direct Stafford Unsubsidized.

The Stafford Subsidized loan is:
Serviced: Sallie Mae
Lender:BNY MELLON ELT SLM TRUSTS
Guaranty: MICHIGAN HIGHER EDUCATION ASSIST. AUTH.
MI HIGHER ED ASST AUTH-MI GUARANTY AGENCY

The Direct Stafford Unsubsidized is:
Guaranty: Direct Loans.

That's all the info NSLDS gives me.

The special consolidation is for Commercially-held FFEL loans. Are either one of my loans one of these?

Thank you so much again, you have been a huge help!!


Submitted by matto4785 on Mon, 04/23/2012 - 15:16

matto4785

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