Student Loan Advice

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Can I consolidate my loans that are in grace?
2007-12-11 22:59:00
Yes, Borrowers who consolidate loans that are in grace may receive a lower interest rate on their Direct Consolidation Loans if they are consolidating variable rate loans. However, once grace status loans are consolidated borrowers lose any remaining grace period. Borrowers receive their first bills within 60 days after the new Direct Consolidation Loan is made.The timing in which an application is submitted is important:Loans first disbursed on or after July 1, 2006 have fixed interest rates. While borrowers with fixed interest rate loans can consolidate while in grace, there is no benefit to do so since the interest rates for in-grace and in-repayment are the same. Borrowers with variable interest rate loans should apply for Direct Consolidation Loans while their loans are in the grace status in order for them to receive the possible interest rate benefit. Since repayment begins within 60 days of the day the Direct Consolidation Loan is made, borrowers should not apply too early i...
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Can I consolidate an existing consolidation loan?
2007-12-11 22:58:00
Yes, under two conditions.A borrower can consolidate existing consolidation loans into a new Direct Consolidation Loan if the borrower includes at least one other FFEL or Direct Loan into the new consolidation loan. A borrower can conslidate a single FFEL consolidation loan if the FFEL consolidation loan is in default status or has been submitted to a guaranty agency for default aversion by the borrower's loan holder.(Source: loanconsolidation.ed.gov)
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Can I Consolidate a Defaulted Loan?
2007-12-11 19:00:00
Generally, Federal education loan(s) in default may be consolidated in a Direct Consolidation Loan if borrowers: Agree to repay the loan(s) under the Income Contingent Repayment Plan. ORMake satisfactory repayment arrangements with the current loan holder(s). If, before applying for consolidation, borrowers who want to completely clear the default notation from their credit records, they may want to consider another option: loan rehabilitation. Borrowers should contact their loan holders to obtain more information about this option.Borrowers cannot consolidate defaulted loans under these conditions: 1) If a judgment has been issued against a defaulted loan, it cannot be included in the consolidation unless the judgment order has been vacated (dismissed). 2) If they are trying to consolidate defaulted Direct Consolidation Loans. 3) If they are trying to consolidate defaulted FFEL Consolidation Loans unless they have made satisfactory repayment arrang...
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Can I consolidate my loans if I am enrolled in school?
2007-12-10 22:57:00
Yes and No. Effective for Direct Consolidation Loan applications received on or after July 1, 2006, borrowers who are enrolled in school cannot consolidate loans that are in an in-school status. These are loans that have not yet entered or used up the 6-month grace period entitlement.Borrowers still can consolidate loans that are in grace, repayment or deferment Borrowers can add loans to an existing consolidation for up to 180 days after the Direct Consolidation Loan was first disbursed. If more than 180 days has passed, borrowers can apply for a new Direct Consolidation Loan. The new consolidation loan can include the original Direct Consolidation loan and must include another eligible outstanding Federal education loan.Example: A borrower who has education loans stopped attending school for a year and the loans used up the 6-month grace period and entered repayment. The borrower returned to school and obtained a new loan. While enrolled, the borrower applies for a Direct Consolid...
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Can I consolidate health professions loans?
2007-12-09 22:48:00
Yes, With a Direct Consolidation Loan, borrowers can include certain health profession loans sponsored through the U.S. Department of Heal th and Human Services with other Federal education loans in their Direct Consolidation Loan. Borrowers must include at least one Direct Loan or Federal Family Education Loan (FFEL) Program loan in the Direct Consolidation Loan. Eligible Health Professions Loans Health Professions Student Loans (HPSL) Health Education Assistance Loans (HEAL) Loans for Disadvantaged Students (LDS) Nursing Student Loans (NSL) Direct Consolidation Loans offer many advantages to borrowers of health professions loans. These include:a longer repayment period; a lower monthly payment; AND a single monthly payment When deciding to consolidate a health professions loans, consider the following advantages:Borrowers who have defaulted on a HEAL may include the collection costs and late fees in a Direct Consolidation Loan. These fees may not be included in HEAL Refinancing. Und...
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PLUS and Perkins Loan Consolidation
2007-12-08 22:45:00
Can I consolidate a PLUS Loan ?Yes, PLUS Loans can be consolidated into a Direct Consolidation Loan.Can I consolidate a Perkins Loan?Yes, it is possible to consolidate Perkins Loans into a Direct Consolidation Loan if borrowers include at least one Direct Loan or Federal Family Education Loan (FFEL) in their request. Perkins Loans cannot be included in a Direct Consolidation Loan by themselves. Furthermore, all Perkins Loans consolidated into the Direct Loan Program will be included in the unsubsidized portion of the Direct Consolidation Loan.Borrowers should carefully weigh the advantages and disadvantages of including a Perkins Loan in a consolidation loan. While the borrowers gain the benefits of the Direct Consolidation Loan Program, they also lose the benefits associated with the Perkins Loan Program.We recommend that you consider the following points prior to making a decision: Perkins Loans are eligible for additional cancellation benefits, such as performing certain kinds of ...
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Direct Consolidation Eligibility
2007-12-07 22:37:00
To qualify for Dire ct Consolidation Loans, borrowers must have at least one Direct Loan or Federal Family Education Loan (FFEL) Program loan that is in grace, repayment, deferment, or default status. Loans that are in a in-school status cannot be included in a Direct Consolidation Loan. Borrowers can consolidate most defaulted FFEL and Direct Loan Program loans, if they make satisfactory repayment arrangements with their current loan holder(s) or agree to repay their new Direct Consolidation Loan under the Income Contingent Repayment Plan.Borrowers who do not have Direct Loans may be eligible for a Direct Consolidation Loan if they include at least one FFEL Loan and have been unable to obtain a Federal Consolidation Loan with a FFEL consolidation lender or have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to them.(Source: loanconsolidation.ed.gov)
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Benefits of a Direct Consolidation Loan
2007-12-04 23:04:00
Direct Consolidation Loan s allow borrowers to combine one or more of their Federal education loans into a new loan that offers several advantages. One Lender and One Monthly PaymentWith only one lender and one monthly bill, it is easier than ever for borrowers to manage their debt. Borrowers have only one lender, the U.S. Department of Education, for all loans included in a Direct Consolidation Loan.Flexible Repayment OptionsBorrowers can choose from four different plans to repay their Direct Consolidation Loan, including an Income Contingent Repayment Plan. These plans are designed to be flexible to meet the different and changing needs of borrowers. With a Direct Consolidation Loan, borrowers can switch repayment plans at anytime.No Minimum or Maximum Loan Amounts or FeesThere is no minimum amount required to qualify for a Direct Consolidation Loan! In addition, consolidation is free.Varied Deferment OptionsBorrowers with Direct Consolidation Loans may qualify for renewed defermen...
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Student Loan Tip: Finish school!
2007-11-30 22:18:00
It's almost the end of the fall semester. Are you a struggling college student thinking about throwing in the towel and dropping out of school? If you're living off of student loans, you had better suck it up and keep going. If you think your young life is painful now trying to keep up in class, you ain't seen nothing yet if you decide to enter back into the world with a load of student debt and no college degree.You're not likely to pull down a good enough job to pay off your loans anytime soon. You could very easily find yourself holding down two jobs just to make ends meet and keep Sallie Mae off your back. You'll find yourself slaving away for long hours while you ponder, "Why in the world did I drop out of college?"So suck it up. So what if your grades this semester won't be that great. This had better be motivation for you to get serious about your classes next year. Stop the partying and hole yourself up and study hard. You can't afford not to.
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The Financial Aid Office is Your Friend
2007-11-16 15:52:00
Don't shy away from seeking financial aid from the college you are attending or applying for. Many don't seek financial aid from universities simply because they are too proud. With the cost of education these days, you HAVE to get over that. By not humbling yourself and seeking help, you're practically asking for years more of student debt. The university financial aid administrator is there to help you. They are full of advice and may open financial doors you haven't even thought of.Don't get cocky either trying to butt in front of other students and sucking everything out of them. You don't want to bite the hand that feeds you. Everybody wins if you're nice about it.
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Start thinking about student loan finance for next year.
2007-11-14 22:41:00
Student loan season most always runs at the beginning of the year. All colleges and universities have firm deadlines for financial aid applications. Be ready and early in filling out your FAFSA (Free Application for Federal Student Aid). Both parents and students need their W2 forms as early as possible in January. If you can't get your W2 early, then come up with a really good estimate of what you think it'll be. You want to be at the head of the queue if you want the best shot especially at the scholarships and grants. Each school has there own deadline. It's not uniform across the country. If you miss the deadline, you'll be stuck looking for private loans which have higher interest rates. This is one piece of student loan advice you had better heed to.
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Scholarships, scholarships, scholarships
2007-11-14 22:33:00
Always, I mean ALWAYS, be looking out for scholarships. There's nothing like free money ease your student loan finance situation. Here's just a couple of places to look:Hispanic Scholarships : http://www.hsf.net/The Google 2008 Anita Borg Scholarship (for women): http://www.google.com/anitaborg/There are so many out there for all sorts of people, not just based on gender or race. You just have to go hunting. The Sallie Mae site is a great place to start.

Sallie Mae News
2007-10-11 22:10:00
Sallie Mae has posted a 13% increase in student loan originations this quarter compared to the 3rd quarter a year ago.This is the way CEO C.E. Andrews puts it:?Thanks to our industry-leading brand, our scale and efficiencies, and our focus on students and families, we successfully faced a number of challenges this quarter. We have a solid track record of growing our ?core earnings? through various political, interest rate and economic environments, and the fundamentals of our business point to a bright future for our company.?How nice. All this new business with all of its origination fees should help comfort them in swallowing the $344 million loss they have this quarter due to stock market declines and defending against company acquisition.
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Average Student Debt
2007-10-09 22:25:00
Here's a good reference from projectstudentdebt.org showing the 2006 average student debt state by state.The bottom 3 worst: District of Columbia ($27,757), New Hampshire ($24,800), and Vermont ($24,839). This makes sense because the New England area has the highest tuition rates as well.The top 3 best states: Hawaii ($11,758), Utah ($12,807), and Kentucky ($15,406).There's also a section showing stats on the best and worst schools.The national "average" yearly tuition in 2006 was right at $10,000. That's $40K for an "average" college education. Have your financial plan in order before approaching Sallie Mae. I know in my last post I said student loans "can" be considered good debt. Still, having a realistic financial plan to pay off your student loan may be more important than getting a good enough SAT score to get into college in the first place. A wrong choice at such a tender young age entering school can financially ruin you for life.There are many horror stories out ...
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College loans are considered good debt ?
2007-10-05 22:36:00
The Etownian Online has things that "may" ease your mind as you take the student debt plunge.Student debt is actually considered good debt if you're faithful in making regular payments on it.1) Lenders are more likely to grant you mortgage and car loans if you show them you are being responsible with your student debt.2) Some companies you work for will help pay off your loan as long as you stay with that company for a certain number of years.3) Other volunteer groups such as The Peace Corps will reimburse you too.4) If grad school is your next stop, you might be able to get some student loan compensation by becoming a TA for a research fellowship. There's a common theme in the last three items. If you're willing to donate some time and effort, you might see your loans disappear faster.
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Preston Orr
2007-10-05 22:27:00
Preston Orr writes:I have been out of college for 5 years now. I have been paying this $20,000 loan with an interest rate that started at 8% and is now at 12.5%. I bought a townhouse, hoping that I will build enough equity to pay off my loan. I cannot consolidate this loan. What is wrong with this country?... I know this is a brief note but does anyone else want to vent their frustration?
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Interest-Free College Loans
2007-08-13 22:30:00
U.S News and World Report has a list of places where you can find "interest free" student loans. It's too late for this fall but look into them for next year.
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Petition to cap private loan interest rates
2007-08-04 14:11:00
Hello! Well my story is short.. I have a lot of Student Loan Debt! ~ $110,000.. my interest rates are from 6.25%-10.25% and I have monthly payments around $1000... I'll be in debt for the next 20 years.. so I want to propose a change. I started an online petition to propose to congress for the capping of private loan interest rates because there is about to be a massive amount of graduated students so far in debt they will never be able to get out of it. http://www.petitiononline.com/endloans/pe tition.html Spread the word and help me attempt to make a difference!--Erica Buffingtonericabuffington@gmail.com
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6 Reasons Why Today's Halving the Student Loan Rate is a Bad Idea
2007-01-17 15:00:00
The Heritage Foundation has a great article on why the legislation scheduled today to be passed is a bad idea.1) Federal spending on student financial aid is already skyrocketing.2) Student s already have many options for federal grants and low-interest loans.3) Student aid subsidies are already set to increase much further.4) Tuition costs rise with financial aid.5) Lower interest rates will not increase access to college.6) Most college graduates can afford to repay their student loans.Rather than providing billions in new federal subsidies, Congress should instead focus on the fundamental problem of college affordability: out-of-control higher education costs. Congress should determine whether ever-increasing federal subsidies for higher education contribute to increasing college costs.Referencehttp://www.heritage.org/Re search/Education/wm1308.cfm
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Backdating Stock Options
2007-01-11 22:21:07
While not necessarily illegal, the unethical practice of backdating stock options for "favorable grant dates" has been uncovered at Affiliated Computer Services Inc. CEO Mark King and CFO Warren Edwards were sent walking after an investigation found they had backdated stock options.The entire business world is now facing this issue and many high profile executives have been put out on the street because of it. It is of no surprise that a student loan company has faced the same problem.Source: Sun-Sentinel
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First 100 Hour Plan for the Democrats
2007-01-11 22:21:07
Check out this U.S. House of Representatives Vote Schedule for January.http://www.student-loan-blues.com /wp-includes/images/100hourscalendar.pdfC utting student loan interest rates is due for a vote next Wednesday on January 17th !
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Email or YouTube me your student loan stories
2007-01-11 22:21:07
If you have a gripe about your student loan, email me your story at studentdebt@gmail.com. Better yet! Make a YouTube video and I'll post it on this blog.Email me at studentdebt@gmail.com when you get your video up on YouTube.Along with any rant you might have, try to answer these questions in your video clip:1) How much was your original student loan ? 2) Has the benefits of the loan outweighed the troubles ? 3) What personal problems has student loan debt caused in your life ?4) If you had to do it all over again, what would you do differently ? 5) How much left do you have to pay off ?
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In memory of Robert T. Stafford
2007-01-11 22:21:07
Former Sen. Robert T. Staff ord, R-Vt., who was such a champion of the federal student-loan program that his colleagues eventually named it in his honor, died Dec. 23 at the age of 93. Mr. Stafford, who chaired the Education, Arts, and Humanities Subcommittee of the Senate Labor and Human Resources Committee from 1981 to 1987, was known as a moderate lawmaker and a strong advocate for education and the environment. He had a close working relationship with then-Sen. Claiborne Pell, D-R.I., the namesake of the primary federal student-grant program in higher education ...(Source: Education Week)
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The Student Loan
2006-12-02 15:51:01
This site is all about helping you get rid of student loan debt. This growing problem is now at at crisis level in our society. Two out of every three graduating seniors now have student loans to pay off!I plan on talking about loans and loan companies, debt collectors and debt consolidation. I'll also cover industry news and general money management tips to help get you out of trouble.While much of the material will be addressed to Americans, I will also tackle issues facing people in the places like Canada, New Zealand, and the U.K.
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Sallie Mae Student Loans
2006-12-02 15:51:01
Since this site is real young, I thought I would write some posts about the basics.If your research on college financial aid has just begun, you need to know about Sallie Mae. They are "the" largest college student loan company in the nation. Over 9 million people have loans with them. For a long time, Sallie Mae was a government initiative but now they are a private company with a prominent New York Stock Exchange listing (SLM). The company has both federal and private loan products:Sallie Mae Federal Loan s Sallie Mae Private LoansCurrent interest rates on their loans can be found here.Sallie Mae also runs a very popular college advice site at http://CollegeAnswer.comI've heard their customer service is poor. Still, they have a wealth of on-line information that can help you make decision.If you're feeling overwhelmed by it all, here's a great reference book that covers all the basics you need:Sallie Mae How to Pay for College: A Practical Guide for Families
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This blog has moved ...
2006-11-01 19:00:02
... you can now find it at:http://www.student-loan-blues.com
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The Five-Point Plan for Fair Loan Payments
2006-10-04 04:39:04
The Department of Education has put out a call to the public asking for rule change ideas to help ease the growing student debt problem. The Project on Student Debt has come up with the Five-Point Plan for Fair Loan Payment s. Go check them out. Here is a summary of their proposal:1) Limit student loan payments to a reasonable percentage of income. 2) Recognize borrowers with children have less income available for student loan payments. 3) Protect borrowers from high interest charges when they face hardship situations.4) Cancel remaining debts when borrowers have made regular payments for 20 years. 5) Simplify the application process for hardship deferrals and other repayment options. If you believe this is the proper way to tackle to problem, let your voice be heard by following this link and signing the petition letter to the Department of Education.
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