College Loan Consolidation

pmdvert18 · #1 03-21-2006, 10:17 PM

I have recently been getting loads of calls and mail from college loan corps. I am 25 yrs old and in May will have been out of college for 3 yrs. How does the loan consolidation work, what is the cost, advantages/disadvantages. From what I understand the interest rate is going up again in June so I am looking to figure this out.

Can anyone explain it to me....????

Schwartzy61 · #2 03-21-2006, 10:19 PM

Doesn't cost anything...

Advantage: Lock in your interest rate
Advantage: typically payment goes down but that leads to disadvantage...
Disadvantage: It will now take longer to pay off your debt if you only pay minimums...

pmdvert18 · #3 03-21-2006, 10:33 PM

so pretty much the goal is to lock in the interest rate....

I checked online and did a loan consolidator...I have 12k remaining on my loan (payment of $175 per month). With the consolidator I used I will owe $103 a month for 180 months (15yrs). The interest over that term will be 5.375%. I am able to pay more than a minimum balance every month (would be willing to pay $250 a month). With this in mind do you think consolidating is a good idea??

Thythe · #4 03-21-2006, 10:36 PM

I think consolidating is a good idea. First you'll only have to write one check. Most importantly, though, is you'll lock in the interest rate. Just continue to pay whatever you are today per month (or more) and in the end you'll save because of the lower interest rate.

C.R.E.A.M. · #5 03-21-2006, 10:36 PM

(Mini-hijack, sorry): Anyone know if it's possible for someone to consolidate their school loans with a few thousand dollars in credit card debt racked up in college?

Thythe · #6 03-21-2006, 10:50 PM

[ QUOTE ]
(Mini-hijack, sorry): Anyone know if it's possible for someone to consolidate their school loans with a few thousand dollars in credit card debt racked up in college?

[/ QUOTE ]

I seriously doubt it, but I can't be sure.

Schwartzy61 · #7 03-23-2006, 02:04 PM

[ QUOTE ]
(Mini-hijack, sorry): Anyone know if it's possible for someone to consolidate their school loans with a few thousand dollars in credit card debt racked up in college?

[/ QUOTE ]

Yes. I did it. And I didn't have a job either. And I had 5-6k in credit card debt...