what is a consolidation loan?
922075
It's a loan where you can pay off all your other debts, (credit cards, auto loan etc.) And just have the one loan and one interest rate instead of many.
1176395
ok, stafford loans have a variable interest rate. this means that it can change every july 1. it's possible that in july 2007 the rate would drop or that it might rise again. by consolidating, you are avoiding the risk of higher interest rates. but, you lose your grace period and the possibility of the rate dropping lower than it is currently. im a financial aid officer, if you have questions, please feel free to email me.
1018833
You can consolidate while you are in-school.  Some lenders allow you to keep your grace period after leaving school, others do not. Because interest rates are rising 1.84% July 1, 2006 I would strongly recommend attempting to consolidate before midnight tonight.\n\nThe consolidation of loans allows you to lock the current interest rate in, otherwise the rate will continue to fluctuate as the economy does. Rates are set to rise on July1 to 6.54% for Stafford Loans if you are currently in school/grace period and to 7.14% for those of you in repayment. Right now rates are at 4.7% for in-school/grace and 5.3% for repayment. Consolidation will round your interest to the nearest 1/8 percent so in-school/grace consolidated rate will be 4.75% and repayment rate will be 5.375% (this is for loans borrowed after 1996, rates are slightly higher on loans borrowed prior to fall of 1996).\n\nRepayment will also allow you to extend your repayment out longer than 10 years, lowering your monthly payment. Because of the large jump in interest rates it is highly recommend that students consolidate their loans by the end of the day today.\n\nThe Perkins loan may also be consolidated, it has a fixed (or locked-in) interest rate of 5%. So many students will opt to leave that loan out of the consolidation if the are still in-school so their interest rate isn't made higher in the weighted average of loans and their interest rates during the consolidation process. You can run examples using loan consolidation calculators at www.finaid.org.\n\n You may also want to consider this if you are in education or nursing fields:  When you consolidate a student loan you no longer qualify for the Teacher Loan forgiveness or Nursing Loan forgiveness programs. So yes this a drawback. It would be a good idea to calculate your interest savings of consolidation for the 5 years you are required to work & pay on your loan to qualify for the program versus taking what portion of your loans that will be left at that time that will qualify for the loan forgiveness.\n\nTo find a listing of all your loans you can use the National Student Loan Database www.nslds.ed.gov. You will need to know your Dept of Ed PIN to access this info. To retrieve your PIN you can request a duplicate be emailed to you within 4 hours at www.pin.ed.gov\n\nYou do have the choice of choosing another lender to consolidate with and their are many to choose from. And it is typically easiest to go with your current lender. \n\nMany people on this site are recommending Direct loans. They are reputiable but many other are as well. To consolidate with Direct Loans you can call their phone number 1-800-557-7392 or complete an application on their website www.loanconsolidation.ed.gov. To consolidate at the website you will need your Dept of Education PIN and the amounts borrowed for each loan (and whether they are subsidized or unsubsidized). The PIN can be emailed within 4 hours so if you request it now you can still get your application completed (www.pin.ed.gov).\n\nRemember you only have until midnight on June 30, 2006 to complete the application if you select to consolidate your loans
568759
Generally, the loan companies that call you out of the blue are the ones that you shouldn't trust -- they're engaging in a practice called Direct Marketing, which is usually a sign that their company isn't strong enough to get its business in a more "low-pressure" way. Most good companies won't call you unless it is (a) on your school's behalf or (b) you are already their customer.\n\nYou can listen to what they have to say, but don't apply for anything or give out your personal information unless YOU called THEM. (Even if you do trust them, it's often easier to consolidate online or on paper -- that way you can cross your "t"s and dot your "i"s and keep a record of the transaction).  \n\nIf you decide to consolidate, whatever you do, make sure you're getting a "Federal Consolidation Loan." I've encountered some companies who have VERY sneaking ways of convincing people that their consolidation product is the same as the Federal Loan Consolidation program, when it really isn't -- so be careful or you could lose all the benefits of the Federal program.\n\nThe Federal Trade Commission's "Do Not "Call" registry applies to cell AND home phone numbers.  You can register for free and if someone DOES call you, you can lodge a complaint here: https://www.donotcall.gov/Complain/ComplainCheck.aspx
1101384
When you consolidate a student loan you no longer qualify for the Teacher Loan forgiveness or Nursing Loan forgiveness programs. So yes this a drawback.  It would be a good idea to calculate your interest savings of consolidation for the 5 years you are required to work & pay on your loan to qualify for the program versus taking what portion of your loans that will be left at that time that will qualify for the loan forgiveness.\n\nIf you choose to consolidate:\nThe consolidation of loans allows you to lock the current interest rate in, otherwise the rate will continue to fluctuate as the economy does. Rates are set to rise on July1 to 6.54% for Stafford Loans if you are currently in school/grace period and to 7.14% for those of you in repayment. Right now rates are at 4.7% for in-school/grace and 5.3% for repayment. Consolidation will round your interest to the nearest 1/8 percent so in-school/grace consolidated rate will be 4.75% and repayment rate will be 5.375% (this is for loans borrowed after 1996, rates are slightly higher on loans borrowed prior to fall of 1996).\n\nRepayment will also allow you to extend your repayment out longer than 10 years, lowering your monthly payment. Because of the large jump in interest rates it is highly recommend that students consolidate their loans by the end of the day today.\n\nThe Perkins loan may also be consolidated, it has a fixed (or locked-in) interest rate of 5%. So many students will opt to leave that loan out of the consolidation if the are still in-school so their interest rate isn't made higher in the weighted average of loans and their interest rates during the consolidation process. You can run examples using loan consolidation calculators at www.finaid.org.\n\nTo find a listing of all your loans you can use the National Student Loan Database www.nslds.ed.gov.  You will need to know your Dept of Ed PIN to access this info.  To retrieve your PIN you can request a duplicate be emailed to you within 4 hours at www.pin.ed.gov\n\nYou do have the choice of choosing another lender to consolidate with and their are many to choose from. And it is typically easiest to go with your current lender.  \n\nMany people on this site are recommending Direct loans.  They are reputiable but many other are as well.  To consolidate with Direct Loans you can call their phone number 1-800-557-7392 or complete an application on their website www.loanconsolidation.ed.gov. To consolidate at the website you will need your Dept of Education PIN and the amounts borrowed for each loan (and whether they are subsidized or unsubsidized). The PIN can be emailed within 4 hours so if you request it now you can still get your application completed (www.pin.ed.gov).\n\nRemember you only have until midnight on June 30, 2006 to complete the application if you select to consolidate your loans
1091615
Hi\nYou may have trouble in getting an unsecured loan for $30K.  I am a loan officer at a bank and when it comes to most debt consolidation loans, they are unsecured -- meaning no collateral.  This being so, unsecured loans are not real big loans.  You could do this as an equity loan against your house (or your friends, i mean).  Once there is collateral, the terms involved get much "friendlier:"  Good Luck!
1075643
Be careful with consolidation.  By consolidating your loans, you may avoid the higher interest rate (and a few thousand dollars on the life of the loan) but you are giving up benefits like deferment and cancellation.  Please do some research and speak with your  student loan officer.\nI placed a few links below.  Many years ago, I had student loans and there was a point in time when I was grateful for the deferment option.  Life is funny, we plan, be we can't plan for everything.\n\n"You may give up some valuable features or benefits of your student loans by consolidating. Decide if you can afford to lose Perkins loan deferment or cancellation provisions or any other features or benefits of your particular loans."\n\n"If you hope to qualify for student loan forgiveness (  http://www.bankrate.com/brm/news/advice/college/20060519c1.asp   )  by pursuing certain public service careers, do not consolidate your Perkins loan. Only the portion of your Perkins loan that remains unconsolidated is eligible for forgiveness."\n\n\nIf you consolidate, you no longer have the 6 month grace period and you must begin payment of your consolidated student loans.\n\nPlease see this link for deferment summary. You never know when you might need a deferment.  \n\nhttp://studentaid.ed.gov/students/publications/repaying_loans/2003_2004/english/repayment-options-deferment.htm
572931
There are debt consolidation companies that will help you out. Also, you can apply for a debt consolidation loan from your own bank.
1175240
NOT consolidation.  What is commonly referred to in that category is a form of loan which PROTRACTS PAYMENTS over a LONGER PERIOD, but for which, in the end, if you do the MATH, you will END UP paying up to FOUR TIMES what you WOULD have paid with a reasonable time period.\n\nWHATEVER you consider or choose, be SURE you do the math for what the FULL COST your your decision will BE...financial AND OTHERWISE!\n\nCUT your EXPENSES, PAY it OFF, and put yourself in a money management program that keeps you OUT of that in future!\n\nBest wishes.
1184451
Unfortunately, student loan interest rates go WAY up on 6/30/06 thanks to Dubya!\n\nMyself, I am a grad and need to consolidate my loans before the deadline! So I went on a google hunt (I mean search ;). But eventually, I did find a site that has rated a few student loan consolidators, and says they have checked them out. Here's the web page: http://lendersrated.com/studentloans.htm\n\nHope it helps you...\nkarateross
1163936
Definitely keep your federal loans separate from your private loans. A Federal Consolidation Loan can only be comprised of *federal* loans, so if you get a letter from a company offering to consolidate private + federal, don't take the bait! You could end up with a Private Consolidation Loan with lousy terms and none of the security of the Federal Consolidation Loan program.\n\nIndeed, students of all sorts (including students who haven't even graduated) are getting tons of fliers about consolidation.  Some are from legitimate companies and some, unfortunately, are not.  When picking a consolidation lender, it's good to pay attention to the interest rate offered -- but this, by far, is not the only indication of a good lender. In fact, some of the companies offering rock-bottom rates are the questionable ones that you want to avoid!  Instead, ask yourself the following:\n\n* How long has the company been in business?  This is a good indication of the longevity of the corporation. Student loan companies come and go and, when they go, they have to sell your loans to someone. If this occurs, you won't get a say in the matter and could end up with a less-than-ideal lender.  In some cases, when these sales are made, students aren't properly notified of the sale, which has led to some students missing payments... which can, in turn, lead to delinquency and default.\n\n* What is the company's website like?  Not only is a strong, detailed website a sign of a good lender, but it can also be critical in helping you keep track of your due dates, look up information during tax season, and apply for deferments.  This is also a good way to spot a "scam"-type company.  If you log onto the website and the first thing you see if an application form asking for your social security number, RUN.  A good company will give you ample opportunity to learn about the terms and conditions of their loan before you apply.\n\n*What is the lender's reputation? What's their customer service center like?  Now, to be fair, now may not be the best time to call up each company to gauge their customer service.  During the last week in June, all of those companies will be swamped with calls from borrowers consolidating last minute.  If you have a chance, talk to your friends, family, and financial aid office to see who they recommend.\n\nFor federal consolidation, Sallie Mae and Citibank are the #1 and #2 consolidation lenders (respectively) in existence right now -- and for good reason. Their loan processes are streamlined, the websites give you everything you need to manage your loans from disbursement to repayment, and they are leaders in their industry.  I would highly recommend consolidating with either of these comapnies.  In fact, I won't name anyone else because I don't think the others hold a candle to these two.  But if you're curious what's out there, you can check out FinAid.org's list of the largest consolidation lenders: http://www.finaid.org/loans/biglenders.phtml\n\nSallie Mae also offers private consolidation, so you could direct all your private loan volume their way, too, and they might be able to bill you on a single bill for all your loans. Although I generally recommend Sallie Mae above the others, I acknowledge that, unlike with Federal consolidation, private consolidation interest rates will vary -- so it might be worth shopping around.  Other lenders who offer private consolidation include...\nKey Bank: http://www.key.com/html/H-1.39.b.html\nEducation Finance Partners: http://www.educationfinancepartners.com/loans_privateconsolidationloan.html\nNelnet: http://www.consolidation.nelnet.net/PvtDescription.asp\nNextStudent: http://www.nextstudent.com/private-consolidation-loans/private-consolidation.asp\nSunTrust: http://www.suntrusteducation.com/debtcons/privcons.asp\nWells Fargo: https://www.wellsfargo.com/student/loans/repayment/consolidation/consolidator.jhtml\n\nFinally, if you
918794
Hello Melissa,\n\nAs the other responders have said, YES, it makes complete sense fo ryou to consolidate!\n\nEspecially being that you have such a large amount of student loan debt...\n\nThe government offers this program to students as a way to teach people a more effective way to manage your debt.. By combining all of the loans into one loan it simplifies your finances..\n\nThink about it, at the end of each month, do you wan tto be sending a9-10 seperate payments to 9-10 seperate lenders, or do you wnat to make one payemtn to one lender???\n\nImagine the checks, stamps, and envelopes you would use in just 1 year if you stayed the way you are..\n\nNot only that but look at the more important issue..\n\nAll loans taken out before July 1st 2006 are variable rates.. In the last few years interest rates have been on the rise... If you dont consolidate into a fixed rate, your rates will rise on all of your loans..\n\nTHIS MEANS YOUR PAYEMTNS RISE AS WELL!!!\n\nBy consolidating you get what is called a weighted average interest rate.. The take an average of your interest rate based on the amount of each loan... More importantly the interest rate is FIXED on the new consolidation loan..\n\nSo, it make s complete sense to consolidate your student loans!!\n\nRemember, the government offers this program FREE OF CHARGE!!!!\n\nMy name is Jason Fry, i am a financial advisor for Student Aid Lending.. We are licensed nationwide and are a title IV lender administered by the Department of Education..\n\nTake a look at my personal yahoo 360 page.. You can find alot of helpful information as well as a direct link to our website...\n\nhttp://360.yahoo.com/my_profile-HlUDUhMib7M9Wlj6o6L2SfGcEYtkt9xsaQ--?cq=1\n\nFeel free to call or email me at any time with questions, or curiousities..\n\nI will take time to answer any and all questions!!\n\nGood Luck!\n\nJason Fry\nStudent Aid Lending\n1-800-964-0642 ext. 114\njasonf@studentaidlending.com
757166
That probably varies from person to person. My best guess would be that they consolidate when they finally realize they are paying exorbitant interest rates on one or more of their credit cards and that a consolidation loan would lower their overall monthly debt at a lower rate.\n\nChow!!
478460
It is a rate commitment loan. Say by the time of closing you have not closed than you could be charged another fee until it is. Usually it is for 30 days and within that 30 days your interset is set at one rate...K Usually for home loans
1031644
Student loan rates are reset every July 1st. Because central bank has been raising the interest rate over the last year, the student loan rate will most certainly increase as well comes July 1st.  Consolidation allows you to lock in the old rate for the life of your loan, so if you have a lot of loans, it may be worthwhile to consolidate before the deadline so that you can pay less in interest every month.  The only caveat is, you can only consolidate your loan once.  So if you consolidate your loans now, you will not be able to reconsolidate the rest of your loans after you graduate.  In my opinion, you should consolidate if you have a large amount of loans already.  This way, you will lock in the lower rate for the biggest chunk of your outstanding loans.  Conversely, if your existing loans is less than 50% of your total loan amount after graduation, you may want to wait to consolidate until after you graduate.  The rate may be lower then (remember, interest rates cycle up and down).
490624
The simplest way is to get your repayment term extended.  To accomplish this you can do one of the following...\n\n* Consolidate your loan(s).  Consolidating will allow you to (1) extend your repayment term beyond the standard 10-year term associated with most Federal loans sometimes up to 30 years, depending on how much you owe and (2) "fix" your interest rate at today's rates [technically, the weighted average of all your loans' current rates, rounded to the nearest 1/8th of a percent].  Consolidation is a good idea for you if you like the predictability of a single payment and a fixed interest rate. With Stafford rates scheduled to rise to 6.8% on July 1st, by locking in today's rates, you will probably lower the amount of interest that will accrue over the life of your loan (and, as a result, shave a little bit off of your monthly interest payment, too); or\n\n* Call your lender and simply request "extended repayment" for each of your loan. This will leave your loans unconsolidated but will extend your repayment term beyond the standard 10 year term.  You can always pay it off sooner or make a larger monthly payment at any point.  Extended repayment is a good idea for you if you don't want to consolidate or want to retain the repayment incentives (or possible interest subsidies) that might be lost by consolidating. (Read about the "pros and cons" of consolidating here: http://www.finaid.org/loans/consolidation.phtml )\n\nGenerally, extending your repayment term will cost you more in the long run because it costs you *less* monthly.  As such, you might want to seek out some more "temporary" ways to reduce your payment.  You could...\n\n* Request the ability to make "interest only" payments for a while\n* Apply for a forbearance or a deferment until you have saved up enough to make your usual monthly payments a bit more manageable again.\n* Request "income sensitive" or "income contingent" repayment.  With this plan, your lender will determine your monthly payments based on your ability to pay. \n* Request "graduated" repayment where your payments will start out small but increase over time.\n\nRead about repayment plans here: http://www.finaid.org/loans/repayment.phtml
897078
A Federal Stafford Loan is a low-interest, fixed-rate, long-term loan for undergraduate and graduate students. There are two types of Stafford Loans: subsidized and unsubsidized. The information you provide on your Free Application for Federal Student Aid (FAFSA) will assist your school's Financial Aid Office in determining which loans you qualify for.