Consolidate Student Loans Guide

Program to get student loans canceled?

noreply@blogger.com (Manny) — Sat, 13 Sep 2008 16:38:00 +0000

Of course, it comes with eligibility requirements...

more here

US Dept. Of Educations "Katrina Specific" Help Website

noreply@blogger.com (Manny) — Sat, 11 Mar 2006 02:42:00 +0000

The Dept. Of Education has set up a website specifically for those affected Hurricane Katrina.

Some of the topics are:

How to Get Help
Donate and Volunteer
Finding Friends and Information
Health and Safety
Hurricane Contracting Information Center
White House Hurricane Relief
Additional Resources

Interest Rate Increase Closing In

noreply@blogger.com (Manny) — Thu, 09 Mar 2006 23:48:00 +0000

Thinking about consolidating your student loan debt? You have until June 30, 2006, before new interest rates kick in. However, if you are a new graduate, you'll want to weigh the pros and cons of consolidation loans fairly quickly. After graduation, you have a six-month grace period before the loan payments begin. By consolidating during the grace period, you save about one-half a percentage point. A summer 2005 graduate could lock in a 4.7 percent rate on Stafford loans, rather than the 5.3 percent rate that kicks in at the start of the repayment period.

The only drawback to consolidating during your grace period is you'll need to start making payments immediately. Not ready to give up those blissful, payment-free months? You could keep much of your grace period by waiting to consolidate until the last month of the grace period..

With a federal consolidation loan, your lender pays off the balances of all the loans you choose to consolidate and then issues you a new loan. Keep in mind though that once you consolidate your loans, there's no going back.

"Once you consolidate there is no way to un-consolidate," says Patricia Scherschel, vice president of loan consolidation at Sallie Mae. "Consolidation is a one-way street."

The interest rate on a consolidation loan is determined by taking the weighted average of interest rates on the federal education loans the student has and rounding up to the nearest one-eighth of a percentage point, capped at 8.25 percent. The final rate will differ from student to student.

Many borrowers sign on for a consolidation loan because they need more breathing room in their monthly budgets. A consolidation loan can lower a borrower's monthly loan payment by as much as 40 percent while stretching out the repayment period.

If your student loan payments add up to more than 8 percent of your gross monthly salary, you're a good candidate for a consolidation loan.

And you don't need multiple loans to enjoy the benefits of a consolidation loan. If your loan amount is high enough, typically $7,500 or more, you may be able to consolidate a single loan. Even though the initial interest rate on that loan won't change much, it will lock in these lower rates for the life of the loan.

Forbearance Issues

noreply@blogger.com (Manny) — Wed, 08 Mar 2006 09:37:00 +0000

I received this email from Cody of Houston, TX recently regarding his student loan:

"Manny - found your blog. I want to know if others are having the same problems with the Direct Loan Servicing Federal Student Aid program.

I live in Houston where I had a few leaves blown off my tree by Rita. The government automatically deferred my student loan payments without my consent. I accrued two months of interest on my balance amounting to about $200. Upon the restart of my payments, my monthly payment went up by $7/month with 72 months to go. Cumulatively, this would amount to roughly $510 of payments on $200 of accrued interest though my interest rate had not changed from the 4 5/8% it was previously. When I raised this red flag to the DLS, they stated that my loan had been miscalculated from the get-go and this was the new payment.

I called B.S. and have requested paperwork on the loan recalculation be sent to me in writing.
Please let me know if you hear of other cases."

Thanks for sharing your experience Cody. Mandatory forbearance (automatically granting forbearance) is not unheard of in times of disaster. But I was under the impression that one still had to request it, or at least sign some kind of written agreement. The whole thing sounds like a big mistake to me, but I think you did the right thing by requesting proof of their claims.
Please keep me updated, I would like to know how everything turns out.

Manny

Where Are My Student Loans?

noreply@blogger.com (Manny) — Tue, 07 Mar 2006 20:42:00 +0000

Can't remember where you got your loan? Use this Loan Locator.

All you need is your Social Security No. and your date of birth to get the info for your primary loan contact.

Going Back To School

noreply@blogger.com (Manny) — Mon, 06 Mar 2006 20:09:00 +0000

It is now easy to restore your eligibility to receive additional Title IV federal financial aid. Basically, your options are:

Repay or satisfy the loan in full.

Make six agreed-upon monthly payments over a six month period. Your payment amount must be approved in advance by the Department. Every qualifying payment must be timely (received before the due date) and you cannot make all six payments as a single lump sum payment. Once your eligibility to receive additional federal financial aid has been restored after making six consecutive monthly payments, you must continue to make timely monthly payments to maintain your eligibility or else it will be permanently lost until the debt is resolved entirely. In other words, you may qualify for this program only once.

Consolidate your loan through the FFEL loan consolidation program or the William D. Ford Direct Loan Program.

Rehabilitate your loan through the FSA loan rehabilitation program.

Since defaulted student loans have no statute of limitations for enforceability, you would remain ineligible for additional federal financial aid until you complete one of the options mentioned above.

Defaulted Student Loans

noreply@blogger.com (Manny) — Sun, 05 Mar 2006 19:32:00 +0000

If you default on your student loan, the maturity date of each promissory note is accelerated making payment in full immediately due, and you are no longer eligible for any type of deferment or forbearance. Continued failure to repay a loan in default may lead to several negative consequences for you over the long-term including having your wages garnished, your Federal income tax withheld, and losing your eligibility for other federal loans like FHA or VA.

However, there are now more ways than ever before to repay your defaulted student loan and certain programs even can even remove your loan from its defaulted status. Determining which repayment option that is right for you depends on what your objective is.

"I want to pay my defaulted student loan in monthly payments that are affordable to me."

All guaranty agencies and the U.S. Department of Education (ED) will accept regular monthly payments that are both reasonable to the agency and affordable to you. You should call 1-800-621-3115 (US Dept. Of Education)and one of customer service representatives will assist you with determining a repayment amount that is right for you.

"I want to reestablish my eligibility for additional federal financial aid and go back to school."

Please see Going Back to School for more information on this topic.

"I'm applying for a HUD (FHA) or VA loan and I don't qualify because of my defaulted student loan."

Your options for reinstating your eligibility to receive a HUD (FHA) or VA loan are: repay or satisfy the loan in full; consolidate your loan through the FFEL loan consolidation program or the William D. Ford Direct Loan Program; or rehabilitate your loan through our loan rehabilitation program. Since defaulted student loans have no statute of limitations for enforceability, you would remain ineligible to receive a HUD or VA loan until you complete one of the options mentioned above.

"My credit record is tarnished because of my defaulted student loan. Is there anything that I can do to improve my credit record?"

Failure to repay your defaulted student loan can be damaging to your credit record. In fact, consumer reporting agencies may continue to report an account for 7 years from the opening date. However, there are several things that you can do to at least partially, and in some cases, fully restore your credit record. Your options for bettering your credit report include: repay or satisfy the loan in full; consolidate your loan through the FFEL loan consolidation program or the William D. Ford Direct Loan Program; or rehabilitate your loan through the FSA loan rehabilitation program.

If you want all negative credit reports made by the Department to your credit record, you must successfully complete the loan rehabilitation program.

"Can I pay my defaulted student loan held by the Department by credit card?"

Absolutely. They accept American Express, Discover, Master Card and Visa as repayment options. To repay a loan by credit card, please call the Department of Education at 1-800-621-3115.

What address do I send my payments to?

If you have a defaulted student loan held by the Department of Education, you can mail a check or money order to the address below. If you are at all unsure about the status of your loan, or who currently holds your loan, please call first at 1-800-621-3115 before sending in payment. You may also use Loan Locator to help you find out what lenders currently hold your loan(s).

National Payment Center
P.O. Box 4169
Greenville, TX 75403-4169

Federal Student Financial Aid Deadlines

noreply@blogger.com (Manny) — Fri, 03 Mar 2006 05:56:00 +0000

The 2005-2006 School Year (July 1st, 2005 - June 30th, 2006):

FAFSA on the Web, Renewal FAFSA on the Web, and applications must be submitted by midnight Central Daylight time, June 30, 2006.
Corrections on the Web forms must be submitted by midnight Central Daylight time, September 15, 2006.
The 2006-2007 School Year (July 1st, 2006 - June 30th, 2007):

FAFSA on the Web, Renewal FAFSA on the Web, and applications must be submitted by midnight Central Daylight time, July 2, 2007.
Corrections on the Web forms must be submitted by midnight Central Daylight time, September 17, 2007.

More

Deferment, forebearance and other temporary relief

noreply@blogger.com (Manny) — Wed, 01 Mar 2006 21:50:00 +0000

If you have trouble making your education loan payments, contact immediately the organization that services your loan. You might qualify for a deferment, forbearance, or other form of payment relief. It's important to take action before you are charged late fees. For Federal Perkins Loans, contact your loan servicer or the school that made you the loan. For FFEL Loans, contact the lender or agency that holds your loan. For Direct Loans, contact the Direct Loan Servicing Center at www.dl.ed.gov or by calling 1-800-848-0979 or 1-315-738-6634. TTY users should call 1-800-848-0983.

Deferment: You can receive a deferment for certain defined periods. A deferment is a temporary suspension of loan payments for specific situations such as reenrollment in school, unemployment, or economic hardship. For a list of deferments, click here. You don’t have to pay interest on the loan during deferment if you have a subsidized FFEL or Direct Stafford Loan or a Federal Perkins Loan. If you have an unsubsidized FFEL or Direct Stafford Loan, you’re responsible for the interest during deferment. If you don’t pay the interest as it accrues (accumulates), it will be capitalized (added to the loan principal), and the amount you have to pay in the future will be higher. You have to apply for a deferment to your loan servicer (the organization that handles your loan), and you must continue to make payments until you’ve been notified your deferment has been granted. Otherwise, you could become delinquent or go into default.

Forbearance: Forbearance is a temporary postponement or reduction of payments for a period of time because you are experiencing financial difficulty. You can receive forbearance if you’re not eligible for a deferment. Unlike deferment, whether your loans are subsidized or unsubsidized, interest accrues, and you’re responsible for repaying it. Your loan holder can grant forbearance in intervals of up to 12 months at a time for up to 3 years. You have to apply to your loan servicer for forbearance, and you must continue to make payments until you've been notified your forbearance has been granted.

Note to PLUS Loan borrowers: Generally, the same eligibility requirements and procedures for requesting a deferment or forbearance that apply to Stafford Loan borrowers also apply to you. However, since all PLUS Loans are unsubsidized, you'll be charged interest during periods of deferment or forbearance. If you don't pay the interest as it accrues, it will be capitalized (added to the principal balance of the loan), thereby increasing the amount you'll have to repay.

Other forms of payment relief: Graduated and income-sensitive repayment plans are available. Graduated payment plans provide short-term relief through low interest-only payments followed by a gradual increase in payments (usually every two years). An income-sensitive payment plan offers borrowers payments based on yearly income. As that rises and falls, so do the payments.

Repaying Your Student Loans Publication

noreply@blogger.com (Manny) — Wed, 04 Jan 2006 05:22:00 +0000

You’ve attended college or received other education beyond high school, and you received federal student loans from the US Department of Education (ED) along the way. You’re now about to deal with paying them back. You’ll need to know how to manage your student loan debt to avoid repayment problems. This publication explains available repayment options so you can successfully repay your debt. It will also tell you what steps to take so you won’t get behind in payments or go into default.

Federal student loans are real loans, just like car loans or mortgage loans. You can’t just get out of repaying a student loan if your financial circumstances become difficult, unless you qualify for bankruptcy. But, it’s very difficult to have federal student loans discharged in bankruptcy; this happens only rarely. Also, you can’t cancel your student loans if you didn’t get the education you expected, didn’t get the job you expected, or didn’t complete your education, unless you leave school for a reason that qualifies you for a discharge of your loan. Remember, your student loans belong to you; you have to pay them back.

Available in .pdf format (you will need adobe acrobat reader)

Download English Version
Download Spanish Version

Hurricane Relief Loan

noreply@blogger.com (Manny) — Tue, 04 Oct 2005 17:38:00 +0000

Sallie Mae is offering an interest-free loan to students displaced by Hurricane Katrina. The loan is a one-time relief loan of up to $1,000.00. Students may apply for the loan through December 31, 2005. The loan is interest-free through May 31, 2006.

qualifying info here

New Federal Consolidation Loan interest rates have increased

noreply@blogger.com (Manny) — Sun, 18 Sep 2005 04:17:00 +0000

From http://www.federalconsolidation.org/

Notice: New Federal Consolidation Loan interest rates have increased. Today's rate: 4.750%.

"What if I didn't apply before July 1, 2005"?

Answer: If you apply on or after July 1, 2005 the weighted average interest rate on your consolidation loan will be calculated using the higher interest rate (currently 4.750%*). Federal regulations set when this higher rate goes into effect. You may still choose to consolidate at this higher rate, however you should weight the pros and cons carefully before deciding whether to consolidate.

* This is the consolidation interest rate on Federal Stafford Loans originally borrowed after 1998 and consolidated while in school or grace.

FAFSA correction deadline

noreply@blogger.com (Manny) — Fri, 16 Sep 2005 00:28:00 +0000

Deadlines: The 2004-2005 FAFSA correction deadline was today (September 15, 2005). However, if you have been affected by Hurricane Katrina, the correction deadline has been extended until December 1, 2005. Corrections must be submitted by midnight Central time on the deadline date. midnight Central Daylight time, September 15, 2005. -->Submit 2005-2006 FAFSA on the Web Applications by midnight Central Daylight time, June 30, 2006.

Student Loan Resources Page

noreply@blogger.com (Manny) — Fri, 09 Sep 2005 20:01:00 +0000

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Student Debt "Increasingly Unmanageable"

noreply@blogger.com (Manny) — Thu, 08 Sep 2005 18:15:00 +0000

CNN Money Online

Article Highlights:

In 1999-2000, 64 percent of students graduated with student loan debt; average student debt has nearly doubled during the last eight years to $16,928.

Read all about it here

Canadian College Student Statistics

noreply@blogger.com (Manny) — Thu, 08 Sep 2005 18:03:00 +0000

A statistical report from Canada about students and the factors that contribute to their ability to pay their student loan debt-

Read all about it here

One British College Graduates Experience

noreply@blogger.com (Manny) — Thu, 08 Sep 2005 17:22:00 +0000

I Found this interesting article about a British graduate named Joanna Kelly. Like a lot of college grads who had the misfortune of not being born with a silver spoon in her mouth, she finds herself deep in debt with seemingly no light at the end of the perverbial tunnel.

I just love the way the 2 "financial advisors" pelt her with GENERAL INFO (are you sensing my sarcasm here?)

Read all about it here

Consolidate Student Loans OR Upromise: Help Paying Off Your American Education Services (AES) Loan

noreply@blogger.com (Manny) — Thu, 08 Sep 2005 04:07:00 +0000

Launched in April 2001, Upromise was created to help families save for college. By joining forces with some of America's leading companies, Upromise allows families to get back a percentage of their everyday spending into their Upromise accounts.

Upromise has built a simple way to help families learn more about their savings options, open investment accounts, and jumpstart their savings. The mission of Upromise is to make college more affordable for American families.

Simply join Upromise for free and leading companies will contribute a portion of what you spend with them into your Upromise account. You can then use these funds to help pay off your AES education loan. You can even invite family and friends to join Upromise and help pay off your school loans. There's never been a better way to manage your educational expenses.

Eligibility and requirements here.

TO GO OR NOT TO GO- to college

noreply@blogger.com (Manny) — Wed, 07 Sep 2005 18:27:00 +0000

I personally feel that people today put more emphasis on college and higher education than on quality time with their family and living a simple lifestyle. If your parents happen to be well-to-do, going to college may not really be a big deal. But if you are from a family of lesser means, college will certainly take it's toll on you and your household. Consider this:

If you marry while still paying on your student loans, odds are that your marriage will be full of tension due to financial difficulties- especially if both husband and wife come into the marriage owing on college loans.
Now add the pitter-patter of little feet to the scenario....

I read somewhere about how so many new marriages ended in divorce due to these student loans. It made me feel ill.

I think people are being pulled-in by all of the "go to college for a better life" propaganda out there (by the way, this propaganda is instigated by slave-drivers in order to determine which slaves would work harder and longer). I'm not saying that college in itself is completely wrong and if you go you are a dummy. But I think that "keeping your eye simple" and putting family first is in order.

Instead of being taught how to live with less, "go for the gusto" is the phrase of the day. For instance, read this article I found and notice how there is no mention of "family time" and the parents don't say anything like "there is nothing wrong with driving a Chevrolet instead of a BMW". There arguement for the kid to go to college is based solely on MAKE MORE MONEY. This is the kind of stuff that makes people today feel almost obligated to "Make something of themselves" (which actually means, you make your Maserati driving employer richer and your BMW driving self gets to look down on all of those Chevrolet driving simpletons out there).

Of course, if you have the means to go to college or plan to be single until your loans are paid off, more power to you. But always remember that college is not the "end word".

Written by Manny,
a self-employed publisher who did not go to college and is not rich
(but is very happy and spends most of his time with his family)

The federal Perkins Loan

noreply@blogger.com (Manny) — Thu, 01 Sep 2005 06:28:00 +0000

The Perkins Loan is awarded to undergraduate and graduate students with exceptional financial need. This is a campus-based loan program, with the school acting as the lender using a limited pool of funds provided by the federal government. (The Perkins Loan is the best student loan available. It is a subsidized loan, with the interest being paid by the federal government during the in-school and 9-month grace periods. There are no origination or guarantee fees, and the interest rate is 5%. There is a 10-year repayment period.

The amount of Perkins Loan you receive is determined by your school's financial aid office. The program limits are $4,000 per year for undergraduate students and $6,000 per year for graduate students, with cumulative limits of $20,000 for undergraduate loans and $40,000 for undergraduate and graduate loans combined.

Institutions participating in the Expanded Lending Option (ELO) may offer higher loan limits for the Perkins Loan. To participate in the ELO, a school must have a default rate no higher than 15%. The annual loan limits are increased by $1,000 each and the cumulative limits increased by $5,000 and $10,000, respectively.

The Perkins Loan also offers better cancellation provisions than the Stafford or PLUS loans. See the section on loan forgiveness for more details.

To apply for a Stafford Loan, you must submit the Free Application for Federal Student Aid (FAFSA). Even though the unsubsidized Stafford Loan is available to all students regardless of financial need, you must still submit the FASFA to be eligible. You can receive a subsidized loan and an unsubsidized loan for the same period.

You may use the Lender Codes Database to obtain the lender codes of participating student loan providers. FinAid also maintains a list of education lenders who offer federal and private student loans. If you are a student attending a school that participates in the Federal Direct Student Loan Program you will obtain your federal student loan funds directly from the U.S. government, not from private lenders.

The federal Stafford Loan

noreply@blogger.com (Manny) — Thu, 01 Sep 2005 06:23:00 +0000

The federal loan for students is called the Stafford Loan and has two variations:

Federal Family Education Loan Program (FFELP) loans are provided by private lenders, such as banks, credit unions and savings & loan associations. These loans are guaranteed against default by the federal government.

Federal Direct Student Loan Program (FDSLP) loans, administered by "Direct Lending Schools", are provided by the US government directly to students and their parents.

All Stafford Loans are either subsidized (the government pays the interest while you're in school) or unsubsidized (you pay all the interest, although you can have the payments deferred until after graduation). To receive a subsidized Stafford Loan, you must be able to demonstrate financial need.

With the unsubsidized Stafford loan, you can defer the payments until after graduation by capitalizing the interest. This adds the interest payments to the loan balance, increasing the size and cost of the loan. All students, regardless of need, are eligible for the unsubsidized Stafford Loan.

Stafford Loans allow dependent undergraduates to borrow up to $2,625 their freshman year, $3,500 their sophomore year and $5,500 for each remaining year (independent students and students whose parents have been turned down for a PLUS loan can borrow an additional unsubsidized $4,000 the first two years and $5,000 the remaining years). Graduate students can borrow $18,500 per year, although only $8,500 of that is subsidized. There are also cumulative limits of $23,000 for an undergraduate education and a $65,500 combined limit for undergraduate and graduate. (For independent students and for students whose parents were denied a PLUS loan the cumulative limits are $46,000 and $138,500, respectively.) Many students combine subsidized loans with unsubsidized loans to borrow the maximum amount permitted each year.

Stafford Loans have variable interest rates (based on 91-day T-bill rate + 1.7% during school with an additional .6% increase upon graduation) capped at 8.25% or less, depending on yearly adjustments. All lenders offer the same rate for the Stafford Loan, although some give discounts for on-time and electronic payment.

If your borrowing needs are not met by the federal programs, lenders offer a variety of supplemental borrowing programs known as Private or Alternative Loans.

Private Vs Federal Default

noreply@blogger.com (Manny) — Thu, 01 Sep 2005 06:13:00 +0000

One missed payment does not equal default (however, a missed payment appears on your credit history and may affect your ability to obtain credit in the future).

A student loan can go into default after 120 days of nonpayment for private loans and 270 days of nonpayment for federal loans.

An interesting report on the rising rates of student loan debt

noreply@blogger.com (Manny) — Fri, 26 Aug 2005 04:45:00 +0000

Interesting statistical report on student loan debt. The State PIRGs are non-profit, non-partisan public interest advocacy groups. The Higher Education Project was established in 1994 to secure more aid for students, with a focus on additional grants, lowering the cost of borrowing, and better service to students in the federal financial aid system.

www.pirg.org

Consolidate Student Loans

Student Loan Consolidation – How does it Work?

noreply@blogger.com (Manny) — Thu, 04 Aug 2005 16:24:00 +0000

Student loans are a great source of financial aid for students who need help paying for their education. Unfortunately, students often leave college with burdensome debt. In addition, they often have multiple loans from different lenders, meaning they are writing more than one loan repayment check each month. The solution to this problem is loan consolidation.

What is student loan consolidation?
Loan consolidation means bundling all your student loans into a single loan with one lender and one repayment plan. You can think of loan consolidation as akin to refinancing a home mortgage. When you consolidate your student loans, the balances of your existing student loans are paid off, with the total balance rolling over into one consolidated loan. The end result is that you have only one student loan to pay on.

Both students and their parents can consolidate loans.

Should I consolidate my loans?
Loan consolidation offers many benefits:

-Locks in a fixed, usually lower, interest rate for the term of your loan, potentially saving you thousands of dollars (depending on the interest rates of your original loans)
-Lowers your monthly payment
-Combines your student loan payments into one monthly bill

In addition, consolidated loans have flexible repayment options and no fees, charges, or prepayment penalties. There are also no credit checks or co-signers required.

You should consider consolidating your loans if the consolidation loan would have a lower interest rate than your current loans, particularly if you are having trouble making you monthly payments. However, if you are close to paying off your existing loans, consolidation may not be worth it.

How will the interest rate for the consolidated loan be?
The interest rate for your consolidated loan is calculated by averaging the interest rate of all the loans being consolidated and then rounding up to the next one-eighth of one percent. The maximum interest rate is 8.25 percent.

To figure your interest rate, visit loanconsolidation.ed.gov for an online calculator that will do the math for you.

How much can I save?
How much you save by consolidating loans depends on what interest rate you get and whether you choose to extend your repayment plan. According to Sallie Mae, the leading provider of student loans in the United States, consolidating student loans can reduce monthly payments by up to 54 percent. However, the only way to reduce your payment this much is to extend your repayment plan. You typically have 10 years to repay student loans, but, depending on the amount you're consolidating, you can extend your repayment plan all the way up to 30 years. Remember that if you choose to extend your repayment term, it will take longer to pay off your overall debt and you'll pay more in interest. There are no preypayment penalties, so you can always choose to pay off the loan early.

Am I eligible to consolidate my loans?
In order to consolidate your loans, you must meet the following criteria:

- You are in your six-month grace period following graduation or you have started repaying your loans
-You have eligible loans totaling over $7,500
-You have more than one lender
-You have not already consolidated your student loans, or since consolidation you have gone back to school and acquired new student loans

The following types of loans can be consolidated:

-Direct Subsidized and Unsubsidized Loans
-Federal Subsidized and Unsubsidized Federal Stafford Loans
-Direct PLUS Loans and Federal PLUS Loans
-Direct Consolidation Loans and Federal Consolidation Loans
-Guaranteed Student Loans
-Federal Insured Student Loans
-Federal Supplemental Loans for Students
-Auxiliary Loans to Assist Students
-Federal Perkins Loans
-National Direct Student Loans
-National Defense Student Loans
-Health Education Assistance Loans
-Health Professions Student Loans
-Loans for Disadvantaged Students
-Nursing Student Loans

Where can I get a consolidation loan?
You can consolidate your loans through any bank or credit union that participates in the Federal Family Education Loan Program, or directly from the U.S. Department of Education. The loan terms and conditions are generally the same, regardless of where you consolidate. You may want to check first with the lenders that hold your current loans.

If all your loans are with one lender, you must consolidate with that lender.

If you decide to consolidate your student loans, remember that you can only do so once unless you go back to school and take out more loans. Therefore, you will want to make sure you get the best deal the first time. The interest rate will be the same from all lenders, but some lenders may offer future rate discounts for prompt payment and a discount for having monthly payments directly debited from your account.

Can my spouse and I consolidate our loans together?
You can consolidate your loans together, but it is not a good idea for a couple reasons:

-Both of you will always be responsible to repay the loan, even if you later separate or divorce
-If you need to defer payment on the loan, both of you will have to meet the deferment criteria

When should I consolidate my loans?
You can consolidate your loans any time during your six-month grace period or after you have started repaying your loans. If you consolidate during your grace period, you may be able to get a lower interest rate. However, since you will lose the rest of the grace period, it is a good idea to wait until the fifth month of the grace period before consolidating. The consolidation process usually takes 30-45 days.

Attention Students Affected By Hurricane Wilma:

noreply@blogger.com (Manny) — Mon, 25 Apr 2005 21:32:00 +0000

FEMA has declared 10 Florida counties affected by hurricane Wilma eligible for FEMA Individual Assistance

Broward
Collier
Glades
Hendr
Lee
Martin
Miami-Dade
Monroe
Palm Beach
St. Lucie

Read the eannouncement here.

Note that the provisions for students affected by Wilma ARE NOT the same as those affected by Katrina and Rita. The FSA is pointing students affected by Wilma to the General guidance for helping Title IV participants affected by a disaster letter written to supplement the 2003-2004 Federal Student Aid Handbook and Disaster Letter 99-28

Summary of disaster letter 99-28: Effective immediately, loan holders will decide what constitutes a natural disaster for purposes of an administrative forbearance, and may grant an administrative forbearance to borrowers who contact them asking for temporary relief from their loan obligations because they have been adversely affected by a natural disaster. The holder may grant a forbearance for up to 3 months based on the borrower's oral or written request for assistance, and must document the reasons why it granted the forbearance in the borrower's loan file, but does not need to obtain supporting documentation or a signed written agreement from the borrower to justify a forbearance for the initial 3-month period. However, a continuation of the forbearance past the initial 3-month period will require supporting documentation and a written agreement from the borrower.