snacker
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Thu Jun-30-05 03:59 PM
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So, today's the last day to consolidate student loans.... |
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and I need HELP! My daughter has one small federal direct loan. She is still in school (graduating after fall term). Does it pay for her to do this? The loan is for $5000. I've got the forms printed and filled out, but I'm undecided about doing this.
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ceile
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Thu Jun-30-05 04:04 PM
Response to Original message |
1. How much are her other loans? |
snacker
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Thu Jun-30-05 04:06 PM
Response to Reply #1 |
3. She doesn't have any other ones, |
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until fall when she'll get another small one. But, from my understanding you can still lock in at the low interest rate having only one loan. That's what I'm confused about.
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Iris
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Thu Jun-30-05 04:05 PM
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2. My husband did that and |
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it seems to have worked well for us. We don't have the same student loan headaches as some of our friends do.
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Chan790
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Thu Jun-30-05 04:08 PM
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No. For a loan that small consolidation takes away too many options and you can only do it once. She'd be better off on a loan that small to throw a large of a payment as she can toward it monthly. If she did that, she'd end up paying nearly no interest anyways.
*You automatically qualify for a 6 month deferment to look for work, unless you refinance or consolidate.
*If she joins AmeriCorps after graduation they pay off loans up to $4725 but not if you consolidate or refinance. (More $$$ for Peace Corps)
*Many couples prefer to combine their college loan debt to reduce payments after marriage. It takes away that option because you can only consolidate once.
that's the top of my head. there are more reasons, basically it takes away options. For someone like me who has been out for 3 years and taken as much AmeriCorps payoff as I can get and burned my deferments, it makes sense. For a current student, it does not.
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snacker
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Thu Jun-30-05 04:12 PM
Response to Reply #4 |
6. Thanks, that sounds like good advice. |
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She does hope to teach at an inner city school and they may help pay off loans too.
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Chan790
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Thu Jun-30-05 04:14 PM
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7. Tell her to look at Teach For America then |
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That's a bigger program, same deal. you agree to teach in an inner city school and stay for x number of years (3, I think) and they pay off your loans.
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ceile
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Thu Jun-30-05 04:16 PM
Response to Reply #6 |
8. And the rate is only guaranteed..... |
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if you make 2-3 years of payments on time without missing any, then it's locked in. If for some reason she needs to take a deferment or forbearance (if she's unemployed, low paying job, etc) the rate doesn't apply anymore.
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snacker
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Thu Jun-30-05 04:23 PM
Response to Reply #8 |
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up to $5000 will be forgiven if she teaches in certain designated, inner city schools for 5 years. Since that's exactly what she hopes to do, I think she'll be okay.
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snacker
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Thu Jun-30-05 04:41 PM
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10. Thanks for your advice, everyone. nt |
etherealtruth
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Thu Jun-30-05 04:11 PM
Response to Original message |
5. Determine if 2.77% interest is worth it to you. |
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I changed careers and rec'd a New degree this May (at 43) -----my oldest child graduated last December ------ I have an outstanding balance of ~ $30,000. I consolidated and have an interest rate of 2.77%. With interest rates rising it was most assuredly worth it to me. $5,000 at 2.77% vs 5 or 6 or 10% would have been worth it to me also. I consolidated online (as easy as any financial or governmental application).
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DU
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Thu Apr 25th 2024, 07:13 PM
Response to Original message |