Comments on: Consolidate Your Student Loans http://www.clampcampus.com/2005/06/03/consolidate-your-student-loans/ orange zest Thu, 04 Mar 2010 14:33:14 -0800 http://wordpress.org/?v=2.9.2 hourly 1 By: Liz http://www.clampcampus.com/2005/06/03/consolidate-your-student-loans/comment-page-1/#comment-89 Liz Sat, 04 Jun 2005 15:21:47 +0000 http://www.clampcampus.com/?p=888#comment-89 I wanted to mention the eligibility issues _with Direct Loans specifically_ because if they go to consolidate now with Direct Loans and get some of their loans kicked out because they were supposed to try to consolidate with their other lender first, they may miss the July 1 cutoff. That's a Direct Loan requirement for consolidation, even with what under other circumstances would be an eligible loan type for consolidation, e.g. Stafford. I'm not talking about non-eligible types of loans, this simply has to do with who holds your loan and government competition with lenders. It's an important fact that's in the Direct Loans fine print that is easy to miss with all of the acronyms being thrown around like "FFEL". Of course, people should consolidate now if they have the option to. I'm not disputing that. I'm just clarifying eligibility with the lender you linked to, which has some additional requirements. I wanted to mention the eligibility issues _with Direct Loans specifically_ because if they go to consolidate now with Direct Loans and get some of their loans kicked out because they were supposed to try to consolidate with their other lender first, they may miss the July 1 cutoff.

That’s a Direct Loan requirement for consolidation, even with what under other circumstances would be an eligible loan type for consolidation, e.g. Stafford. I’m not talking about non-eligible types of loans, this simply has to do with who holds your loan and government competition with lenders.

It’s an important fact that’s in the Direct Loans fine print that is easy to miss with all of the acronyms being thrown around like “FFEL”.

Of course, people should consolidate now if they have the option to. I’m not disputing that. I’m just clarifying eligibility with the lender you linked to, which has some additional requirements.

]]> By: Elana http://www.clampcampus.com/2005/06/03/consolidate-your-student-loans/comment-page-1/#comment-88 Elana Sat, 04 Jun 2005 04:03:49 +0000 http://www.clampcampus.com/?p=888#comment-88 Regardless if all their loans are eligible, if the majority of your loans are eligible for a reduced rate, you should attempt to consolidate. There is still plenty of time to work it out. It's also not necessary you do the consolidation through Direct Loans, although if you have the qualifications for it, it's easiest. There are plenty of private lenders who'd love for you to consolidate with them. The rates are released so there's no doubt, PLUS loans are set to rise to over 6% and Stafford loans to over 5%. Considering my consolidation came in at under 3%, that's a significate rate difference. Regardless if all their loans are eligible, if the majority of your loans are eligible for a reduced rate, you should attempt to consolidate. There is still plenty of time to work it out. It’s also not necessary you do the consolidation through Direct Loans, although if you have the qualifications for it, it’s easiest. There are plenty of private lenders who’d love for you to consolidate with them. The rates are released so there’s no doubt, PLUS loans are set to rise to over 6% and Stafford loans to over 5%. Considering my consolidation came in at under 3%, that’s a significate rate difference.

]]> By: Liz http://www.clampcampus.com/2005/06/03/consolidate-your-student-loans/comment-page-1/#comment-87 Liz Sat, 04 Jun 2005 01:52:14 +0000 http://www.clampcampus.com/?p=888#comment-87 Worth mentioning something I said the other day on IM, not everyone can consolidate through Direct Loans immediately. If they have a non-Direct lender, they may need to get turned down first if they are consolidating Direct loans with non-Direct loans. It probably has to do with DLS being a purely government agency competing with places like Sallie Mae. Not the easiest to comprehend until they tell you that you don't qualify to roll in all of your loans. Read more here (http://loanconsolidation.ed.gov/hfaq.shtml#difference) and here are some of the specifics on that page. "A borrower _who recently graduated_ and wishes to consolidate a Direct Loan with other Federal education loans _is eligible_ for a Direct Consolidation Loan. **A borrower _in repayment_ who wishes to consolidate an FFEL with other Federal education loans (no Direct Loans) and has been _unable to obtain a Federal Consolidation Loan is eligible_ for a Direct Consolidation Loan. A borrower _in repayment_ who wishes to consolidate an FFEL with other Federal education loans (no Direct Loans) and _is able to obtain a Federal Consolidation Loan with acceptable income-sensitive repayment terms is NOT eligible_ for a Direct Consolidation Loan. " If all loans are Direct loans, I think you can consolidate any place you want. Worth mentioning something I said the other day on IM, not everyone can consolidate through Direct Loans immediately. If they have a non-Direct lender, they may need to get turned down first if they are consolidating Direct loans with non-Direct loans. It probably has to do with DLS being a purely government agency competing with places like Sallie Mae.

Not the easiest to comprehend until they tell you that you don’t qualify to roll in all of your loans. Read more here (http://loanconsolidation.ed.gov/hfaq.shtml#difference) and here are some of the specifics on that page.

“A borrower _who recently graduated_ and wishes to consolidate a Direct Loan with other Federal education loans _is eligible_ for a Direct Consolidation Loan.

**A borrower _in repayment_ who wishes to consolidate an FFEL with other Federal education loans (no Direct Loans) and has been _unable to obtain a Federal Consolidation Loan is eligible_ for a Direct Consolidation Loan.

A borrower _in repayment_ who wishes to consolidate an FFEL with other Federal education loans (no Direct Loans) and _is able to obtain a Federal Consolidation Loan with acceptable income-sensitive repayment terms is NOT eligible_ for a Direct Consolidation Loan. ”

If all loans are Direct loans, I think you can consolidate any place you want.

]]> By: Cassie http://www.clampcampus.com/2005/06/03/consolidate-your-student-loans/comment-page-1/#comment-86 Cassie Fri, 03 Jun 2005 20:40:17 +0000 http://www.clampcampus.com/?p=888#comment-86 I"M so glad I don't have to worry about that. My loans are paid off. :) I”M so glad I don’t have to worry about that. My loans are paid off. :)

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