Originally posted by: FreebieBoy
I HAVE Something like 10,000 in sallie mae loans and around 20,000 in federal govt loans and they start like june 10th so how can i considolate etc? What should i do any guidance?
You can fill out the forms online. It is really simple to do. You basically tell them who has your current loans, the approximate amounts, etc and they pay those off and you start owing them. Just read through their online documentation. You can also have them send you the forms in the mail.
I, like the post a few up, locked mine in around 4.8% last year using the same .8% reduction incentive program. The prior year, I had been paying 8%, but with the rate drop, and the incentives, it was a no brainer...
I was about to consolidate with another Federal Program that allows various banks to handle it, but luckily one bank actually had a link to the US Dept Of Education page telling their own potential customers that they might save more money by doing that! I quickly turned the people I work with onto that, and together we are saving a lot of money.
Here is another Idea... put your loan on the graduated payoff so you pay very little now... the interest is tax deductable (and starting next year there is no 5 year max on deducting student loan interest thanks to Mr Bush), and lower than most people's car payments, credit cards etc. So, taking the money you would have sent to your Student loans and dumping that on higher interest things can save you more.
Mine are pretty high since my Parents could not help much with the college bills. I am now saving about $60 a month in interest over what I was 2 years ago.. and, the rates are LOCKED! Over 10 years, that is a savings of over 7 grand for me.
If you have not done so yet, CONSOLIDATE. Don't wait until the rates increase and wish you had. 99% of student loans are Variable with a Max set at around 8.5%. When the economy takes off again, your current rates will increase.. no doubt about it.
Someone here was concerned about still being able to deduct interest from taxes... They send you a form just like you receive now telling you how much to deduct etc.