Tuesday, May 24, 2005

Loan Consolidation Hell

Total amount owed? HEART ATTACK. $150k. For REAL.

Filling out the federal loan consolidation paperwork is incredibly difficult. The feds have a database of what loans you currently have outstanding, but you have to enter each of your loans into the consolidation app separately, and they want things like the lender, guaranty agency, account number, and all that jazz. Hello? YOU ARE THE ONE THAT LOANED ME THE MONEY. Shouldn't YOU have this info? Damned if I know the amount, lender, guarantor, and account # for each loan. It's taken me over an hour to just give up on this whole thing. I'll have to figure it out another time.

Apparently, one can consolidate loans either 1. while still a student or 2. right before your grace period ends. If you consolidate in the middle of your grace period, you have to start repayment within 60 days, which could actually shorten your grace period. So don't do it.

I give up. Time to watch more MTV Cribs.

8 comments:

Ken said...

CRIBS!

Allison said...
This comment has been removed by a blog administrator.
Nick said...

I don't know how much my situation is like yours, but I'll tell you about me.

I just graduated from college a couple of weeks ago and I'm going to law school in the fall. I have X amount of school loan debt. I am currently in my grace period, and I have requested a consolidation application from my lender. The lender representative on the phone told me that once I fill out the consolidation application (which must be before July 1st, when the rates will change), I will have my loans consolidated. So as to avoid paying on my loans now (since I'm really unable to do so), I can get a deferment so that I can defer making any payments on my undergrad loans until after law school. After all, I will be taking out more loan money from the government (Stafford loans) for law school, aside from the private loans that I will be getting to make up the difference between what the law school will charge me and what the government won't give me.

If you are between undergrad and grad school like me, then you should be able to do the same thing. The reason that I am consolidating my undergrad loans is that the interest rates will be going up on July 1st. When I consolidate, I will be able to "lock in" at the current low rates that apply to my loans now.

Anonymous said...

"Allison's" spam angers me.

Superfluous Sentiments said...

I've been whining and complaining over my (initially) 68K in student loans from pharmacy school. I've been out 6 years. I spoke with my ex-husband last night as he just finished law school as well. He owes over 100K as well. I consolidated with a company at the end of the grace period.

Allison, you suck. Not only do you not have a life because obviously you look for posts where you can copy and paste your well-prepared speech, but at least have your own blog that we can look at when we click your stupid name.

I'd delete your ass.

Allison said...
This comment has been removed by a blog administrator.
Michelle said...

OMG, thankgod for Australia, where our loans (HECS) are around one fifth of what you pay. We don't start paying them back till we start earning over 38k a year and then its only 1% of what we owe. No more than 8% is payed back till you earn 80k.

NBT said...

Michelle:

America is not about fairness... It is about exploitation of the one who can be exploited.