Student Loan Consolidation

[Landlord]

So I'm in the process of consolidating all $28,000 of my federal student loan debt since I really can't afford to pay back each individually.

I don't really know much about this process - are there certain things I should know? Is there any reason that I might not want to consolidate all of these together?

 

[StPaulHusker]

So I'm in the process of consolidating all $28,000 of my federal student loan debt since I really can't afford to pay back each individually.

I don't really know much about this process - are there certain things I should know? Is there any reason that I might not want to consolidate all of these together?

Government backed student loans typically can't be consolidated with any personal/private loans you may have. So if you have a Stafford loan for $1,000 and then got a loan privately through a bank, those 2 may not consolidate. Wells Fargo does do some consolidation of both but you would have to check with them on the parameters of your loans.

As far as if there is any reasons not to consolidate everything, I can think of only 2. #1 if you are married or planning to marry, DO NOT consolidate with your spouse. If either one of you were to die, the other one would be on the hook for the entire amount consolidated. #2 if you have a loan that has a lower interest rate than what is being offered through consolidation. That's just pissing money away.

It has been many years since I had student debt so my answers may be antiquated so some younger people might have a better grasp of things. I just know this is what I faced when I did it a while back.

 

[Landlord]

So I'm in the process of consolidating all $28,000 of my federal student loan debt since I really can't afford to pay back each individually.

I don't really know much about this process - are there certain things I should know? Is there any reason that I might not want to consolidate all of these together?

Government backed student loans typically can't be consolidated with any personal/private loans you may have. So if you have a Stafford loan for $1,000 and then got a loan privately through a bank, those 2 may not consolidate. Wells Fargo does do some consolidation of both but you would have to check with them on the parameters of your loans.

As far as if there is any reasons not to consolidate everything, I can think of only 2. #1 if you are married or planning to marry, DO NOT consolidate with your spouse. If either one of you were to die, the other one would be on the hook for the entire amount consolidated. #2 if you have a loan that has a lower interest rate than what is being offered through consolidation. That's just pissing money away.

It has been many years since I had student debt so my answers may be antiquated so some younger people might have a better grasp of things. I just know this is what I faced when I did it a while back.

The application site lists the interest rates for all of my loans (I do have one private education loan through wells fargo for about 4k, but i'll pay that off separately), but I don't know how I can check and see what the consolidated interest rate would be until after I decide which loans I want to include in it. I'll have to do some searching.

 

[StPaulHusker]

So I'm in the process of consolidating all $28,000 of my federal student loan debt since I really can't afford to pay back each individually.

I don't really know much about this process - are there certain things I should know? Is there any reason that I might not want to consolidate all of these together?

Government backed student loans typically can't be consolidated with any personal/private loans you may have. So if you have a Stafford loan for $1,000 and then got a loan privately through a bank, those 2 may not consolidate. Wells Fargo does do some consolidation of both but you would have to check with them on the parameters of your loans.

As far as if there is any reasons not to consolidate everything, I can think of only 2. #1 if you are married or planning to marry, DO NOT consolidate with your spouse. If either one of you were to die, the other one would be on the hook for the entire amount consolidated. #2 if you have a loan that has a lower interest rate than what is being offered through consolidation. That's just pissing money away.

It has been many years since I had student debt so my answers may be antiquated so some younger people might have a better grasp of things. I just know this is what I faced when I did it a while back.

The application site lists the interest rates for all of my loans (I do have one private education loan through wells fargo for about 4k, but i'll pay that off separately), but I don't know how I can check and see what the consolidated interest rate would be until after I decide which loans I want to include in it. I'll have to do some searching.

This kind of makes sense because the more $ you consolidate, the higher the rate will be because of the perceived risk the loan institution is taking to get their money from you.

 

[BIGREDIOWAN]

I consolidated my loans right after I graduated from college and it was an easy process. I don't know for sure what my interest rate is as I don't have my statement in front of me. I consolidated about $22,000 total through the U.S. Dept. of Education. My payment is at $157.64, just so you have a general idea what you'll be paying. The only reason I haven't went on to get my Master's from Nebraska online is because I don't want another $20,000 in debt that will double my payment. Sucks..............

 

[HuskerShark]

When I went in and talked to my banker about consolidating mine, he told me 2 things:

1) They would only consolidate for the value of my equity, and at the moment, all I have is a pickup worth about 5000 bucks. My loans are at about 30-32k

2) Since student loans have a 6 month grace period to make payments after you graduate, he advised me to wait until the payments are due to consolidate them.