scrock said:OK. I went thru both posts regarding the Consoldation. Still kinda confused.
I think most agree that UHEAA has the best deal here (especially for 30 years repayment)
I have my Stafford (both sub. and unsub.) with citibank... (I know the finical department screw me there)
I have 1 federal Perkins loan thru no one according to NSLDS.
Is it possible for me to rip UHEAA's benfits?
I know the issue may be "one lender rule", however it seems like there is a way aournd it with perkins. (2-step?)
My concerns here are
1st, will I be able to use UHEAA?
2nd, if so, will I have time to do it before the Jul/1/05 deadline?
3rd, if I consoldate, should I leave a small (8500) loan out so I can re-consol again later? Some one seems to mention it.
ohh.. I got 120.000+ in loan.
Q]

1. UHEAA told one of my friends that they could count the Perkins loan lender and break the one lender requirement. Another friend didn't have a perkins loan but was able to beg and convince BofA to release their right of first refusal.
2. you can only consolidate after you graduate. you may be able to start the process now, but UHEAA won't accept the application until after you graduate. They told me that they go by the date of submission, not completion, so if you submit by 7/1, you should be able to get it.
3. I don't know. Call UHEAA, they are pretty knowledgable.

cvc2k said:I just did my research on "Single Lender Rule" and it was shocked. Anyone else got shafted with Sallie Mae on this? It looks like all my students loans are with SM so trying to consolidate using UHEAA would be interesting. Just want to see if anyone else did it before w/ SM & UHEAA

Anyway, did my part to fight this ridiculous loop hole. Wrote to
Senate Health, Education, Labor, and Pensions Committee (Sen. Judd Gregg, Chairman) at mailbox@gregg.senate.gov or via this link.
House Committee on Education and the Workforce (Representative John Boehner, Chairman) at john.boehner@mail.house.gov or via this link.
and NC Senator Richard Burr who is also sitting on the senate committee... Ppl that got shafted should start writing their email

what is ridiculous is the stupid financial aid offices who don't counsel their students well during the loan application process. they always told me to just pick any lender, never once mentioning the single lender rule.

somdave2005 said:Peekay, Financial Aid offices probably did not know about the one lender rule themselves...

well my financial office did and they didn't mention anything.

Hmm.. i did this consolidation thing last year and ended up going with IDAPP. THe Indiana State financial aid board that i heard about through this forum. Similar deal but not quite as good, .25 % reduction for electronic payements and then another 1% after 48 payments. Considering the change in rates, it's about the same.

It would seem these obscure state programs are the way to go. Several articles on FW about IDAPP, Utah here, and i think there is one floating around about nebraska as well.

To those about to graduate pay EXTREME attention to the one-lender rule discussed above. If you have all of your loans with one lender, go to your financial aid office and see if you are eligible for any extra stafford money, no matter how small, and take it through a second lender. Finincial aid offices purposely don't tell you this because multiple lenders makes it harder for them. But you are totalled owned if your lender knows they are the only one you can consolidate with.

I ended up spending weeks researching this in the 6 month grace after i graduated. (be sure you consolidate in your grace period to save 0.50% before you go into the higher repayment rate). In the end had 2.75 % on my consolidated loan -.25 EFT and 1 % after 48 for 1.5 % long term. I'm sure some FW'ers have done better but i was ecstatic. Good luck to you guys. RESEARCH the state programs!

So what is the current consolidated rate for staffords now anyway?

darqice said:it is still 3.37% i think, pre-consolidation.

but looks like it could go up at least 2% on July 1

Dang...that would be my luck. I graduate in August.

I currently have my Stafford through CFNC (College Foundation of North Carolina). They have a pretty sweet consolidation deal.
1/2% decrease every 12 months (up to 2% decrease after 48)
1/4% decrease for electronic payment

If I can lock in 3.25%, that means I will eventually end up with a 1% tax deductible loan.

What's the deal with other consolidators? Do you have to be residents of certain states to consolidate? (Like Utah for UHEAA?)

Do you have a link to THE? I would like more info on that deal. I have some federal loans to consolidate very quickly.

morris, i found it for you...

Northstar THE

somdave2005 said:DHL, If i had to choose between 5% principle reduction vs 2.25% interest reduction at UHEAA, I would pick the interest reduction hands down. Just put the numbers in one of those consolidation calculators and see for yourself.

Dave

Thanks! It turns out via the calculator at finaid.org that either one is a good choice for me because the totals are as follows (actually the 5% reduction is a better choice for me (may not apply to others with longer terms) because I just threw the full 2.25% interest rate reduction from day 1 on the calculator instead of 1.25% then 2.25% after 48 months).

$18,500 principal
5 year term
consolidated at 3.75%
----------------------------------------
5% principal reduction:
$17,575.00 principal
auto pay .25% reduction = 3.50% interest rate
over term = $1,608.19 interest + $17,575.00 = $19,183.19

2.25% interest reduction:
$18,500 principal
1.50% interest rate
over term = $713.98 interest + $18,500.00 = $19,213.98

Rates are high because they are from the Mid to late 1990's. So the rates were higher for the ones from 7/1995 - 6/1998 then the ones from 7/1998 - 1999. I might be off by a year or two in regards to those periods, but that is the gist of it. They were all variable rate stafford sub/unsub loans. It is detailed on this table: http://www.finaid.org/loans/scripts/interest.cgi