http://jdmba2b.blogspot.com/2005/05/important-news-for-those-with-federal.html

Many of you could save quite a bit by consolidating now.

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2901302)

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2901375)

Example: If you are using Bank One for all your Stafford loans now you cannot choose to consolidate your loans with Sallie Mae if you do not have any loans available for consolidation with Sallie Mae now.

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2901430)

Can I quick try to secure a loan for the 05/06 academic year and immediately consolidate before the loan is even disbursed? (Or am I forced into taking this coming year's loan at the increased rate after June 30?)

Does this new consolidation-while-in-school deal mean that each year I can "consolidate" the 30k I've taken out for that year...? (So, by graduation, 3 separate consolidated loans w/ different interest rates)

I know I should call US Dept of Ed, but the last time I did, I was hung up on by some girl who sounded like she was 16 (who gave bad info and kept putting me on hold), then finally given semi-accurate info by a better rep the second time. I'm putting more trust in what you say, jdmba.

Thanks.

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2901432)

To your second question 30k per year seems like the wrong number. 18.5 (10k +8.5k for the subsidised and unsibsidised laons) would be the max stafford loan pepr year for most of us. Under the current law consolidating each year at a new rate is technically possible (and logical if rates continue to rise each year on July 1). However the laws may change in the future. There is some talk of no longer letting people consoldate with a fixed rate like you can now.

Dont worry about any possible future law changes. Just worry about consolidating your current loans. We cannot control how the rules may change going forward

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2901461)

Sure would be nice to win the lottery or have rich parents right about now... oh well, I'll deal.

Thanks again.

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2901514)

And the interest rate on Perkins gets locked at 5% and starts accruing immedietly.

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2998798)

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2901534)

Most loan programs give you some choice about which payment period to choosed. At the current rates I would choose the longest term possible as you would be better off to prepay your credit card bill, car loan or even mortgage if you are risk adverse.

Contact your lender, but as a former financial advisor I would absolutely recommend most people in that situation to consolidate.

I am not recommending any lender over another but here is a calculator to help you estimate yous savings:

https://www.consolidation.nelnet.net/Apps/CalcConsolComp.asp

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2901592)

wow. that is the first time anyone ahs ever said such a thing to me in all the history of xo. Thank you, sir.

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2902094)

http://jdmba2b.blogspot.com/2005/05/important-news-for-those-with-federal.html

Any more questions?

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2902075)

Also, I graduated in May 2004 so I am already making the minimum payments. Since I am not in the deferred stage anymore, could I consolidate the loan and lock in the lower interest rate, defer my loan when I start law school in August, and still qualify for the 6 month grace period?

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2905126)

You have 15 grand or so laying around?

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2908713)

I lose my 6 month grace period regardless right?

Also, what happens to the accrued interest on my unsubsidized loans; does it get included in the consolidation loan as part of the principal or as a running account of interest accrued?

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2908767)

Maybe this will inspire you.

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2917120)

The William D. Ford Federal Direct Loan (Direct Loan) Program includes the following Direct Loans:

Federal Direct Stafford/Ford Loans (Direct Subsidized Loans)

Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans)

Federal Direct PLUS Loans (Direct PLUS Loans)

Federal Direct Consolidation Loans (Direct Consolidation Loans)

The Direct Loan Program is authorized by Title IV, Part D, of the Higher Education Act of 1965, as amended (the Act).

A Direct Loan is made by the United States Government and is administered by the U.S. Department of Education (ED). ED's Direct Loan Servicing Center will manage, answer questions about, and collect my loan. I will be provided with the address and telephone number of the Direct Loan Servicing Center when my Direct Consolidation Loan is made.

1. Change of Status. Under federal law, I must notify the Direct Loan Servicing Center, in writing, if any of the following events occurs before my loan is repaid:

I change my address.

I change my name (for example, a maiden name to married name).

I change my employer, or my employer's address or telephone number changes.

I have any other change in status that would affect my loan (for example, I lose eligibility for an unemployment deferment by obtaining a job).

If I am still in school, I must notify my school's financial aid office if any of the following events takes place:

I reduce my enrollment status to less than half time.

I withdraw from school.

I stop attending class.

I fail to enroll for any term.

I have a change in my expected graduation date.

I change my name, local address, or permanent address.

2. Loan Identification Numbers. My Direct Consolidation Loan may have up to three individual loan identification numbers. These numbers will be determined and assigned by ED depending on the loan(s) that I have chosen to consolidate. Even if three separate consolidation loan identification numbers are assigned by ED, I have only one Direct Consolidation Loan and will receive only one bill.

2a. The following subsidized loans will be consolidated under one loan identification number:

Subsidized Federal Stafford Loans

Guaranteed Student Loans (GSL)

Federal Insured Student Loans (FISL)

Federal Direct Stafford/Ford Loans

Federal Direct Subsidized Consolidation Loans

Federal Perkins Loans

National Direct Student Loans (NDSL)

National Defense Student Loans (NDSL)

Subsidized Federal Consolidation Loans

2b. The following unsubsidized loans will be consolidated under one loan identification number:

Unsubsidized Federal Stafford Loans (including Non-Subsidized Stafford Loans made prior to 10/1/92)

Federal Supplemental Loans for Students (SLS)

Unsubsidized Federal Consolidation Loans

Federal Direct Unsubsidized Consolidation Loans

Federal Direct Unsubsidized Stafford/Ford Loans

Auxiliary Loans to Assist Students (ALAS)

Health Professions Student Loans (HPSL)

Health Education Assistance Loans (HEAL)

Nursing Student Loans (NSL)

Loans for Disadvantaged Students (LDS)

2c. The following parent PLUS loans (unsubsidized) will be consolidated under one loan identification number:

Federal PLUS Loans

Parent Loans for Undergraduate Students (PLUS)

Federal Direct PLUS Loans

Federal Direct PLUS Consolidation Loans

3. Interest Rate. It is my responsibility to pay interest on my loan. Interest will be calculated according to the applicable formulas provided for by the Act and/or ED's regulations. The interest rate that applies to my loan will be included in a letter that I will receive from the Direct Loan Servicing Center when my Direct Consolidation Loan is made.

The interest rate on my Direct Consolidation Loan will be based on the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher one-eighth of one percent, but shall not exceed 8.25%. This is a fixed interest rate, which means that the rate remains the same throughout the loan.

4. Interest Charges. Interest will be charged from the date my Direct Consolidation Loan is made. However, for all of the loans that I consolidate from Item 2a, ED will not charge interest on my Direct Consolidation Loan during in-school, grace, and deferment periods. For all of the loans that I consolidate from Items 2b and 2c, ED will charge interest on my Direct Consolidation Loan during all periods.

ED will charge interest on my Direct Consolidation Loan during a forbearance period.

I must pay any interest during an authorized period of deferment or forbearance or capitalize the unpaid interest by having it added to the loan principal at the end of the deferment or forbearance period, as provided under the Act. If I choose to capitalize unpaid interest, the total cost of my loan increases.

The Taxpayer Relief Act of 1997 may allow me to claim a federal income tax deduction for interest payments I make on Direct Loans for the first 60 months (whether consecutive or not) that such loans are in repayment. The deduction applies to interest payments I make on or after January 1, 1998. For further information, I may refer to the Internal Revenue Service (IRS) Publication 970, which is available at http://www.irs.ustreas.gov.

5. Grace Period. My Direct Consolidation Loan will receive a 6-month grace period before the first payment on my loan must be made if all of the following conditions are met:

I have at least one Direct Loan or attend a Direct Loan school,

At least one Direct Loan or Federal Family Education Loan (FFEL) Program loan that I am consolidating is in an in-school period, and

My application for a Direct Consolidation Loan is received by ED prior to the end of my in-school period.

The grace period begins the day after I cease to be enrolled at least half-time at an eligible school. (If my enrollment status changes to less than half-time after I apply but before the first disbursement of my Direct Consolidation Loan, I will not have to make payments on my Direct Consolidation Loan for the number of months remaining in my grace period at the time the first disbursement is made.)

My grace period does not include any period up to 3 years during which I am called or ordered to active duty for more than 30 days from a reserve component of the Armed Forces of the United States, including the period necessary for me to resume enrollment at the next available regular enrollment period.

6. Repayment. My first payment will be due within 60 days of the first disbursement of my Direct Consolidation Loan unless I meet the conditions outlined in Item 5 or am eligible for a deferment.

I must make payments on my loans even if I do not receive a bill or repayment notice. Billing information is sent to me as a convenience, and I must make payments even if I do not receive any notice.

I can choose one of the following loan repayment plans.

Note: The time periods given for each repayment plan do not include periods of deferment and forbearance.

Standard Repayment Plan - If I choose this plan, I will make fixed monthly payments and repay my loan in-full within 10 years from the date repayment started. Payments must be at least $50 a month and will be more, if necessary, to repay the loan within the required time period. The amount of the payments may be adjusted annually to reflect changes in the variable interest rate.

Extended Repayment Plan - If I choose this plan, I will make fixed monthly payments and repay my loan in-full within 12 to 30 years, depending on the total amount of my loan and other allowable education debt. Payments must be at least $50 a month and will be more, if necessary, to repay the loan within the required time period. The amount of the payments may be adjusted annually to reflect changes in the interest rate.

Graduated Repayment Plan - If I choose this plan, my payments will be lower at first and will increase, generally every two years. I will repay my loan within 12 to 30 years, depending on the total amount of the loan and other allowable education debt. Payments must cover interest charges and can never be less than 50 percent or more than 150 percent of the amount I would have paid under the Standard Repayment Plan. The payments may be adjusted annually to reflect changes in the interest rate.

Income Contingent Repayment Plan - If I choose this plan, my monthly repayment amount is based on the total amount of my loan, my family size, and my Adjusted Gross Income (and that of my spouse if I am married). Until ED obtains the information needed from the IRS to calculate my monthly repayment amount, my payment will equal the amount of the interest that has accrued on my loan unless I request forbearance. As my income changes, my repayment amount may change. If I have not repaid my loan after 25 years under this plan, the unpaid portion of the loan is forgiven. I may have to pay income tax on any amount forgiven.

Just ask your lenders. You will lose your month grace period after graduation if you use a private lender. Check with a private lender or http://www.loanconsolidation.ed.gov/ for more info

If you use the dept of education you can KEEP your 6 month grace period but the other terms may not be as great as some private lenders offer.

Good luck!

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#2995079)

http://www.law.georgetown.edu/finaid/loanconsolidation/#still

http://www.law.georgetown.edu/finaid/inschool/

I hope that helps those who are still confused

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#3008964)

i called them, the woman said they don't have any set incentives aside from the .25% direct deposit but a couple of my direct loans had a some principal reduction subsidies for paying on time 12 months (it was 1.5%)

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#3046986)

http://jdmba2b.blogspot.com/2005/05/important-news-for-those-with-federal.html

(http://www.autoadmit.com/thread.php?thread_id=191039&forum_id=2#3056120)