Best Student Loan Consolidation Program is the Federal Student Loan Consolidation?

[Stangman Jonathan]

Thanks to Sallie Mae I now have over 20 SMALL Studen Loans. I've heard about many Student Loan Consolidation Programs over the years but just recently, trying to figure out the Best Student Loan Consolidation programs has been made even easier.

After reading several articles I found out that there is only ONE Student Loan Consolidation method out there now as of November 2011, the Federal Student Loan Consolidation program. Being a student for just five years and acquiring so many small Student Loans from Sallie Mae with low interest worries me about enrolling in a student loan consolidation program and having my interest sky-rocket if it ends up being monopolized?

I have yet to apply to have my student loans consolidate under the Federal program since I have been debating whether that would be a good choice or not.


The APR on my Student Loans range from 6.8 to 8.5% in interest but how they really screw college kids over is with having them separate. Somehow they expect us to pay them over $1500 a month and that only covers the minimum.

The minimum barely helps pay down anything other than the interest. So I'm curious to see what others have done with their school loans to get them paid off quick or consolidate.

As long as it keeps me from growing white hair any quicker I'd be happy to try it...thanks!


Federal Student Loan Consolidation Program is called the Direct Consolidation Loans Program: http://www.loanconsolidation.ed.gov/

[kittyspike]

I'll be paying mine until after I'm dead, so I feel ya here. I guess I was lucky in that I didn't qualify for Sallie Mae so a federal loan was my only option. When I graduated from Rutgers I had 2, and you could combine them very easily all online. My payment is still higher than it should be AND they want to jack it up every 2 years; it's funny how they assume you'll just keep getting promotions/raises!!! I also can't lobby to have my monthly payment lowered until I'm current on payments - I am one behind due to an emergency earlier this year. So instead of looking at that and helping me out they just keep punishing me and making it impossible to lower my payment to then BECOME CURRENT.

And yeah the payment just keeps hitting interest. I have been paying for almost 2 years now and my total still hasn't changed, I don't think.

Steve may have a better solution for you, if you ask him. My only sugestion is a personal loan to cover the full amount - which would probably be insanely high in interest. You could also try calling the Direct Loan people and converting your loans to them. Though honestly they aren't much better IMO.

[GT800]

Win the lottery? Rob a bank? Hmmmm maybe knock overe an armored car... Im totally in if so. On a realistic note im sorry I have no real input I had done very well in the stock market before college and never had to take out any loans

[Stangman Jonathan]

Thanks Sallie Mae actually provided me all stafford sub and unsub loans. No private ones yet due to their interest.

Their manage loans website is so lame that it only currently displays one of my loans when I log in. How did you merge them?


I agree on the expected pay increases to pay these lol. Makes me regret not further considering my last two good job offers.

Originally Posted by GT800

Win the lottery? Rob a bank? Hmmmm maybe knock overe an armored car... Im totally in if so. On a realistic note im sorry I have no real input I had done very well in the stock market before college and never had to take out any loans

Haha oh man wish I had invested in google back then as I had been told

[kittyspike]

I am up on robbing a bank. I vote that Dan should drive the getaway car - but we'd have to plastidip the entire thing to try and disguise the shelby.

I am assuming that because yours are Sallie Mae it is still very different than how I manage my loans. Mine are Direct Loans, yours are still tied to SM. Steve has Sallie Mae - for real, I'll tell him to PM you later.

It's going to be okay - I just keep telling myself they can't get blood from a stone.

[Stangman Jonathan]

In effort to make even more off college grads:

Consolidating your student loans
Student loan consolidation is a way to bundle your student loans into one new consolidation loan.

Private student loan consolidation
Thank you for your interest in Sallie Mae, the nation's leading provider of saving- and paying-for-college programs. We have temporarily suspended offering our private consolidation loan program. No new private consolidation loan requests will be processed at this time.

Federal student loan consolidation
Sallie Mae's Federal Consolidation Loan service is not available at this time.
Severe legislative cuts made by Congress made federal loan consolidation uneconomical. This, combined with the credit market deterioration, has caused us to suspend participation in the federal consolidation loan program.
If you are seeking to reduce the monthly payment on your Sallie Mae education loans, please call us to explore other options, such as our extended or graduated repayment plans. These options can provide significant monthly payment relief and often at a lower cost than federal consolidation. The toll-free number is (866) 457-6918.

https://www1.salliemae.com/after_gra...dent_loans.htm


Their other 4 payment methods sounds like I'll just be paying insanely more in the end....rather join them all up

Latest research according to Chase's Website: Federal Consolidation Loans are now available solely from the U.S. Department of Education's Direct Loan program.

Which I assume is this website? http://loanconsolidation.ed.gov/borrower/bconsol.html

[kittyspike]

Yup yup. I can't believe that crap message from SM! WTH are you supposed to do then? Pay $1500 month?!

If you can convert to direct loans I strongly recommend that you do so ASAP. Don't even mess around online. Call them.

[Nigel xD]

Sally Mae keeps calling my house around dinner time.

Never again.
Ne-ver again.

[jrzycobra]

If you or your parents own a house, maybe a home equity loan? I don't know what the rate is but the consolidation might be worth it.

[Kitty's Man]

John,
I wish I could offer some words of wisdom about students loans, but really they just become a part of your life. I have been out of school for over a decade and I am still paying mine off. I did defer them when money as tight, during my divorce, and that just added more interest to the loan. Like any other long term loan, if you look at the total repayment figure, you will make yourself sick. Most long term loans are re-payed for about 3 times the initial loan amount. Under my current schedule I will be 63 when I make my last payment. Given my loan payment is only $150 per month, but it is for over 30 years..... do the math.... it is disgusting.

Just try to get it so the monthly payment is something you are budget into your life and forget about it..... anything else will make you prematurely gray...