Good Consolidation Programs!
Date: Wed, 03/21/2007 - 17:18
Good Consolidation Programs!
I am writing this email because my girlfriend is SWAMPED in student loan debt. We graduated in 2004 and since then she has been paying 10% on two (2) loans she got from Sallie Mae. Since she has begun repayment, her principal balance has actually gone UP ON BOTH LOANS! I have to get her out of this and would really appreciate any suggestions of programs that you can think of that can consolidate approximately $30K in debt for a lower rate.
Thank you,
Tim
You cannot consolidate at a lower rate. Consolidation rates are
You cannot consolidate at a lower rate. Consolidation rates are a weighted average of the current rates that you currently hold. Your friend probably has variable rates and she should have consolidated prior to July 06 to lock in the the lower rates from prior to July 06. Rates jumped significantly last year....it was all over the news!
Your friend might also want to look at the student loan calculator to figure out her interest rates. By my calculation, he interest is probably running around $170 per month.
http://www.finaid.org/calculators/loanpayments.phtml
Several lenders do offer back end perks when you consolidate such as interest rate reductions for autopayment and another for on time payments. If she is going to consolidate, use a lender direct like SallieMae or Direct Loans.
Student loan interest rates are lower than most consumer loans.
Student loan interest rates are lower than most consumer loans. Over the last 3 years the rates have been at the lowest rate on record! They were down in in the 3-4% range. Right now they are 6.8% (I think)).
Think about it...how many banks will let you borrow money and then not make payments on it while you are in school or in periods of unemployment?? Without good credit or a co-signer?? And in the case of subsidized loans, the government pays the interest for you while you are in school!! Then they offer consolidation loans that are not credit based and will extend your payment plan if you are not making enough money! On top of that, if you have any remaining balance after 25 years of repayment, they will write off the existing balance!
Private loans, on the other hand are credit based so there is some risk to the lender. Most private loans are non profit based and have no SOL and cannot be discharged in BK.
I guess I am just getting old....I mean geezzzz...who would loan
I guess I am just getting old....I mean geezzzz...who would loan money to poeple who really can't ever afford to pay it back....could it be predatory...sub-prime lenders? How are they losing money? If it's a bank the Federal gov. pays them...and if it's the gov. they essentially can take whatever they want. The goverment and very rich poeple will always loan money and then put it to the consumer when the various markets crash. They make thier money and then get out and leave the rest of us broke, feeling guilty, and for some crazy reason feeling really obligated to make them even richer!
The real truth is that anyone in America that has to depend on our gov. to attend college will pay dearly.
Quite a few banks have spent the last few years loaning money to millions of poeple who didn't qualify. Now everyone thinks they are hurting so bad....lol...big joke...the gov. will bail them out and then when real eastate and the home market rises again....they will make yet another fortune off of properties ceased....it's the same thing with student debt!
I for one am going to fight this time. I am already in enough trouble blindly signing loan papers trusting our wonderful Dept. of Education to be telling me the truth!!! This time I will have a lawyer tell me if I should sign or not....geez....since my debt more than doubled in 7 yrs. I do suppose that I can afford at least the first free cosultaion fee!!
Lawyers, I hate to tell you, are totally ignorant of student loa
Lawyers, I hate to tell you, are totally ignorant of student loans laws, rules and regulations. There are still BK attorneys making the mistake of letting clients think their student loans will be discharged in BK. By the way, it was BECAUSE of attorneys and other professionals, that the bankruptcy laws were changed to making student loans non dischargeable in BK. Prior to 1998, any 3rd year law student could tell you the exact date that they would file for BK on their student loans. I forget the exact figure, but attorneys cost the student loan industry BILLIONS of dollars in discharged loans!