Problems consolidating student loans
Date: Wed, 04/07/2010 - 16:14
Problems consolidating student loans
I currently have student loans from three scources: A Federal subsidized stafford loan from the Dept. of Education, a couple of Terri loans American Education Services (formerly BofA), and a Select Student Loan with Sallie Mae. The first of which is a federally backed loan; while the latter 2 are privately owned. The total pricipal balances are equal to appx. 67,000.00 @ 15 year terms (maximum length) totalling just over 550.00 per month in payments. Currently My new wife and I (just this past december, TYVM) make just over 2500.00 a month combined income after taxes. The payments are greater than 25% of our houshold income and this is outright unsustainable
The college I went to was a 4-year private college and tuition was around 35,000.00+ per year. The dept. of education would only qualify me for a certain amount and left it up to us (my mother and I) to find student aid elswhere. We took out the remainder of my loans with BofA and Sallie Mae to cover the gap and my mother paid as much as she could out of pocket as well.
Keep in mind that back then it was a lot easier to consolidate. When I applied I was informed by both Sallie Mae and BofA that I would be able to consolidate all of my loans no problem. About a year before graduation both companies went under (with the recession) and dropped their consolidation programs. Had I known this sooner I never would have gone with them. So sallie Mae dropped the program and no longer offers reduction programs with their private loans - only federally owned ones; and AES is the replacement bureaucracy that took over the Student loan dept. at BofA and likewise dropped their consolidation program.
Herein lies the predicament. While AES and Sallie Mae have dropped their consolidation programs, the Direct Loan service with the Dept. of Education has a GREAT consolidation program... Only problem is they only consolidate loans serviced/owned by the Federal government. My Only option is to go with an outside company, but even then will it be worth it?
So my questions are as follows: 1) Would it be worth it to consolidate with an outside financial institution?; 2) If so would anyone have any recommendations?; 3) Are there any provisions in the new law that would help someone like me to lower my payments to less that 10-15% of my monthly net income?; 4) is there any way to transfer private Student loans to the ownership of the DOE; and 5) Would the Dept. of Education consider taking on my private loans anyways considering circumstances?
Keep in mind:
deference/forbearence are not an option - I need to keep those options open because I am considering Graduate school.
AND
when we applied we pretty much took any loans we could get not knowing the difference when it comes to who actually services loans... So please refrain from flaming me. TY.
1) Would it be worth it to consolidate with an outside financial
1) Would it be worth it to consolidate with an outside financial institution?;
not likely you will find one outside a student loan lender that will consolidate privates...I think Wells might be one of the few consolidating private lenders left
2) If so would anyone have any recommendations?;
See above
3) Are there any provisions in the new law that would help someone like me to lower my payments to less that 10-15% of my monthly net income?;
Nope
4) is there any way to transfer private Student loans to the ownership of the DOE;
Nope
5) Would the Dept. of Education consider taking on my private loans anyways considering circumstances
Nope
Informative, but not helpful... Any suggestions? I'll check ou
Informative, but not helpful...
Any suggestions?
I'll check out Wells Fargo in the meantime.
If anyone else has suggestions or experience dealing with this s
If anyone else has suggestions or experience dealing with this sort of thing PLEASE feel free to provide insight. I am in desperate need. I cannot sustain these payments with my level of income.
The only thing you can do is raise your income, even if that mea
The only thing you can do is raise your income, even if that means working a second job. There are no other options for private loans....that is the nature of these loans. There is really no other insight to offer you.
yOU seem awfuly bitter about this soaplady. obviously this kid i
yOU seem awfuly bitter about this soaplady. obviously this kid is in need and the last thin he needs is for you to dump all of ur frustrations on him.
Huus I feel for you. I hope you find the help you need. If only "getting another job" were so easy. I am a college student like you and I worry about even getting 1 job! My loans are not as big but I still worry. I think you need a second opinion here but i am not as informed as i should be. gppd luck with ur dilema.
ps. maybe since u only have 1 gov. loan and a lot of private bank loans u can juts consol. the priv. ones. mighte help a little.
Nothing bitter about it...those are the facts as they pertain to
Nothing bitter about it...those are the facts as they pertain to private loans. They dont offer income contingent or graduated payment plans or anything that is made affordable. They dont have to....they are not required to. If you dont pay your set payment, they will default you and then they will sue you. Simple facts. The only thing you can do is increase your income and make the payments.
Where would you go about consolidating your private loans? I kno
Where would you go about consolidating your private loans? I know you can't consolidate private and federal together but you should at least be able to consolidate the 2 privates (no pun intended) and extend the term. I just don't know what banks are willing to do that these days. Perhaps it's like you said - look into 3rd party financial institutions, if you can find any, and see what they'd be able to do about your MMP's
Maybe a little abrasive, But that's alright. I appreciate you pu
Maybe a little abrasive, But that's alright. I appreciate you putting things in simple terms. Learning how to deal with these things has been anything but.
I am, however, unsure how deserved it is. I, unlike many people, have been staying on top of my finances. My cosigner (i.e. my mother) would help me pay long before I ever hit any "default" period. I found a website you referred another subscriber to on this website soaplady in which they name banks that are still consolidating private loans. I think Wells Fargo was one that you named earlier as well. In the meantime I am looking for a more professional line of work and a second job if that doesn't work out. However if something doesn't pan out for me I want to at least be able to manage my own finances as a responsible consumer and college graduate.
It's almost embarassing. I went to school as a student of finances and economics and I seem to be more inept than I should be in actuality.
This is why when talking to students I recomend they attend scho
This is why when talking to students I recomend they attend schools that they can afford. I realize it is water under the bridge now, this is the price you pay for expensive private education. You probably would have gotten the same job with a state school education.
Thank you again. If it's still a viable option - If I were to co
Thank you again. If it's still a viable option - If I were to consolidate the private loans and leave the federal loans, what do you think the potential is for payment reductions? Wells fargo says that by extending the payoff term of the consolidated loan that payments can be made lower. It may mean paying more in the long run but this is something I'd be willing to live with.
Is this a viable option?
And, is this something you'd reccommend?
If you can do it, and the payments are affordable to you, go for
If you can do it, and the payments are affordable to you, go for it. Did wells give you a monthly repair estimate?
Quote:Originally Posted by SOAPLADYIf you can do it, and the pay
Quote:
Originally Posted by SOAPLADY If you can do it, and the payments are affordable to you, go for it. Did wells give you a monthly repair estimate? |
Privates do charge origination fees which can bite...I believe t
Privates do charge origination fees which can bite...I believe they are based on your credit too. You have to do your research and compare the term you have now with what you can get.