Last Chance for Great Student Loan Deal...

Hey there, just a friendly reminder:

If you haven't consolidated your student loans do it ASAP. Accent on the S: you need to do this before July 1 if you want to avoid getting slammed with a higher payment.

As you probably know, the interest rate you pay on your loans is reset each July 1. And this year the rate is going to adjust up. Way up. Probably close to 2 percentage points more because the Treasury bill rate that is used to set student loan rates has had a big spike over the past 12 months.

So someone in repayment today paying about 3.37 percent could see their rate climb to 5.25 percent. Ouch.

But if you consolidate you can lock in your CURRENT rate for the rest of your repayment period. Yes, forever. With current rates at historic lows it is absolutely a no-brainer to consolidate before July 1.

Comments

[Isaac N]

Suze -

I have a question for you regarding this. I will be graduating in May, so I will definitely be consolidating. However, my wife won't graduate till next December. She will be taking out another $2500 before then, and currently has about $14,000 in loans. Should we consolidate her loans, knowing that we will have to start repayment early? Basically, is the benefit of the lower rate worth it?

Thanks,

Isaac

[Andrew]

I am graduating in May and will currently have Stafford loans (both types) and a Pekins Loan. My Perkins loan is 2,804 and the Stafford loans total $14,500. I know that you say to consolidate before July 1st, but I am not sure if I should include my Perkins Loan in the consolidation. I say this because I would be cutting the 9 month grace period I have on it and I don't think it is worth it since the rate can go no higher than 5%. Should I just worry about Stafford loans, or should I consolidate the Perkins loan also and cut the grace period short?

Thanks,

Andrew

[Elana]

Suze -

I'm in grace and my first payment is due 7/8/2005. Obviously, I want to wait as long as I can before consolidating because when I do, I lose my grace. I do, however, want to be consolidated prior to the rate increase on July 1 (for the reasons you stated above). I'm willing to lose a month of grace, that doesn't bother me. What I want to know is the absolute latest date I should wait to apply for consolidation through the Federal Direct Loans site to make sure it sticks with the interest rate by July 1.

[Kelly]

I have the same problem as Andrew. I have 1200 in Perkins, and a grand 40000 in Stafford. Will it be good not to include the Perkins in my consolidation?

I heard that from someone else, about postponing the student loan payment. That person keep taking random classes at community colleges, so that his loan has been on deferment for like the past 10 years. Is that even possible?

[Rachel]

If your loans are currently in a period of deferment (because of grad school), can you consolidate them and still have them stay defered?

-Rachel

[Vivian]

I am in the same situation as Andrew and Elana. Should I consolidate now? I don't mind losing the grace as I finally am working, but my biggest concern about consolidating is with who/which bank? How do I know if it is a good deal where I choose to consolidate? Thank you

[Student Loan Horror Story]

I had a real problem with my student loan debt some years ago. I can write from experience: consolidate now while the interest rates are still low. It's a once in a lifetime opportunity to save a lot of money in the long term.

[Jennifer]

I recently consolidated all my Stafford loans both subsidized and unsubsidized. I have to say I wish I had done it a long time ago!!! I was able to lock in a rate of 4.25%. I know that although it has stretched my payback period with additinal interest to boot but now my monthly payments are lower and I can start paying off more of my credit card by October 2005 (right now it's at 0%, it's one of those deals where you don't have to make any payments until 2006)I am getting it out of the way before then! Consolidating will also help me start saving for home downpayment within 3 years! So, do it now!

[Gerard]

I have the same question as Vivian two posts up. I'm currently with Citibank Student Loans (on Deferment) and graduating this month (May '05). Should I stay with them for consolidation or go with another institution like "Student Loan Consolidation Program" or "Federal Loan Consolidation"? Is there a reliable website where these institutions are rated? Thanks in advance!

[Denise]

Dear Suze:

Where did you get that fabulous top you were wearing in the April issue of Oprah's Magazine for your article, "Financial Freedom?"

Thanks,

Denise Soodhalter

[Gisela]

I'm not sure about consolidation, either. I am going back to grad school to get the certification I need in order to advance in my career. I'm worried that if I consolidate now, I won't be able to get a deferment when I go back to school.

[mark shoberg]

Check out www.consolidation411.com for info on the consolidation process, they have links to some of the better programs, plus they donate $5 to your school of choice when you request information on their programs.

[beesting]

this may be a stupid question...can you only consolidate once during the life of your loan?

thanks!

[Student Loan Consolidation Center]

Consolidating is a great deal right now. You can lock in low rates and extend the repayment term to lower your monthly payment...

[Jason]

I am a veterinarian doing well at this point. I have finally taken care of my credit card and miscellaneous debt. However, I have a astronomical $90,000 of student debt. I have already consolidated with a percentage less than 4%. My minimum payment is currently $450. In July of 2006, I will be entering a 3-year low paying residency position in dentistry. I am concerned I will not be able to make the payment. Do I have any options here?

[Karen]

I am currently a graduate student. I'm working towards my third Master's degree and when I finish in about three years, I will have accumulated over 100,000 dollars in student loan debt. I was wondering if I should pay the interest on my loans while I'm in graduate school and how that would affect my repayment schedules when I graduate.

[Jason]

Is there anyway to consolidate a private loan? I was extatic to hear about the low rate consolidation that you can do while in school, but I felt stupid when lady I was talking said they had to federally funded and no private (like citibank loans), and I have $20,000 with 6.25% rate and they said there was nothing I could do. I'd never advise anyone to go with private loans. If I knew the difference I wouldn't have gone with citibank.

[Adam]

Hey, I know Suze's got to pay the bills but I don't think www.myfico.com is the best place to get your fico score. I was just checking my credit report and every Credit Bureau offered a $5 FICO score. That's 15 for all 3 not $15 for one. If I mis-read the ad for myfico.com I appologise. Just thought you might like 3 for the price of 1.

[Tres Paul]

Whats up with the whole "beat up housewife" look Suze sports on a regular basis?

[Tuan]

Before everyone rushes out to consolidate, make sure that the current company doesn't offer additional incentives that significantly reduce the interest rate. Because if you consolidate, it might end up worse because you lose the incentives.

[Joshua Kersey]

I'm finishing up my two year degree and don't want to get a loan for my four year, but with rates being so low right now, should I get one any way?

[Wade Hinson]

What does this matter if a judge imposes unplayable amounts of "child support"? No loans are available to "deadbeat dads" and one is not permitted to pay at a lower rate than is "imputed" by a low down(organized criminal) "family" court. I was literally run over and hobbled by a "drunken" driving "courtier"; his "family" has doped, married me to a "nurse" (RN) and divorced me from her, then declared that as they placed the video of the rapes committed on my person "in therapy" - presumably court ordered - !!! I was thus they argue "employed" as a "legal" sex worker in the past and thus could be forced to do so in the future. I have a record of working in textiles and furniture carpentry - while under the influence of date rape drugs during the "recovery" at no more than $17,000 per year gross pay. The imputed wage imposed was over $30,000; obviously it was never intended that this imputed wage could be earned, as I am not connected to a porn ring other than through this court involuntarily, and thus could not get a job in porn even if I were not an alter boy, boy scout and Salvation Army Volunteer Bell Ringer. Obviously, this court mocks "Christian Culture" punishing any lack of hedonism with the longest imposable sentence in world history (The Law Reads "UNTIL THE CHILD SUPPORT IS PAID" - a sentence of forever as at prison wages $100,000 + in "child support" is never payable). While in government service I have earned monies but I have never taken a dime in compensation as it is against my religious belief to profit from war. After I was run over, I have reason to believe I was declared dead and my trusts taken; my financial guardian (that I retained from childhood - I was orphaned -) was murdered in 1990. I have only began to recall most of this since the amnesia resultant from the "date rape drug therapy" has gradually and intermittently left me. At this point, I realize in "civil court" I cannot as a pauper meet the burden of overwhelming proof required to get my property back and my name restored. As a former workplace owner (these people drugged and employed me in my own factories), I realize that presumed workers do not enjoy any advantages over presumed employers in Maine. These "people" even deny that I have any injuries, but rather in keeping with normal practice have labeled me instead a psychotic malingerer.

[Adam]

what?!?

[SHORT_SELLER]

Suzy are you t00 busy taking everyones money with your BS self taught money scam?..wish you had a publically traded company I could short to ZERO....Im thinking you and Martha Stewart must be related...[phoney]

[pamela]

My dear SHORT_SELLER -

Please, I'm begging you, get a life and take your bitterness with you. Seems you have some irrational anger towards women who succeed. Lose it, it is extremely unattractive and always makes you the smaller person.