Comments on: What To Look For When Consolidating Student Loans

By: Jason

Jason — Wed, 12 Sep 2007 00:52:29 +0000

This is good to know. I will be in your shoes soon, about a year. I, however, will have lots of private debt. But from what I have seen it is more or less the same, but they have a max cap on the average depending on your credit.

Based on what you say, it may be more worth while to consolidate the federal loans, and consolidate the private loans separately. I would have to make two payments, but I think I would be saving in the end. I’ll have to run the numbers.

By: Christina

Christina — Mon, 10 Sep 2007 23:00:09 +0000

Just like securing student loans in the first place, consider that a very small percentage of people will actually qualify for the benefit for on-time payments, depending on the loan company. Some will disqualify you from any rate discounts if you are late with just one payment, and usually they take quite a few payments to kick in in the first place. Some lenders, like Total Higher Education, have more forgiving policies in this regard.
Auto-debit discounts are usually better, if you know you’ll always have enough money in the bank.
Also look at when the lender will capitalize/recapitalize your loan – that can make a huge difference in how much you’ll have to pay off.

By: Dustin

Dustin — Mon, 10 Sep 2007 19:25:05 +0000

Non government loans are different. For these, I went through a credit process and was given the ‘rate of the day’. From there, the normal direct withdrawal discounts and all those others may still apply, based on the bank.

Also a discount which you did not list is a loan from the bank you have your checking account. If you go with them most often (I have read/heard/experienced) will give you a comparable rate plus an additional quarter point off of your direct withdrawal discount.

Thanks jim.