I just sent in my application to consolidate. Between my wife and I we have 4 loans and three different interest rates. Can anyone explain how they get your intrest rate at consolidation?

Sorry... accidental post.

DHL, something about your calculations didn't seem right, so i went back and looked at your numbers. Then i realized that you calculated your loan repayment for only a 5 year term! They don't even have a 5 year option on loan consolidation applications. Even standard loan repayment w/o consolidation is 10 years. The loan repayment terms are going to vary according to how big your consolidated loan is but they will all more than the standard 10 years repayment. (of course, technically you can pay off the entire loan over 5 years if you want to by paying more than you need to) But are you really going to repay it that fast??? If you plan to repay it that fast, yes the principle reduction option will be better. But if you want to extend your repayment longer like most people then the interest rate reduction will be better.

for example: using your numbers

Loan: 18500
interest rate: 3.75
repayment term: 180 months

Option #1: principle reduction
$17575 after 5% reduction
@ 3.5% after .25 reduction, total loan paid = $22,554

Option #2: Interest rate reduction
$18500
@ 2.5% after 1.25 automatic payment reduction, and another 1% reduction after 48 months (using obsidian's UHEAA loan amortization tool)
total loan paid = $20,969 if you paid your minimum monthly requirement of $140.
***** this deal is even better if you pay more than your minimum monthly requirement, because you will get your extra 1% reduction sooner.

Hopes this helps.
Dave

dhl, in that case just get the 5% principle reduction. There's no way I'm going to pay off my loans in 5 years...residency doesn't pay very much! Good luck Dhl.

Dave

I am just starting to get the letters for consolidation. Anyone know what the best deal in Florida? I have a bunch of $5k Citibank stafford loans taken out in the past few years and I have a wells fargo loan. Id like to consolidate them all together.

THANKS
Alison

does uheaa put extra money paid to the principal or just on future payments? And I was slackin and havne't consolidated yet, do you think its too late to consolidate now? How long does uheaa take to process the forms and such?

watjac92 said:does uheaa put extra money paid to the principal or just on future payments? And I was slackin and havne't consolidated yet, do you think its too late to consolidate now? How long does uheaa take to process the forms and such?

Considering how most schools just changed everyone to "In-Grace"/Left School, I think you have plenty of time. I am sending mine out tomorrow (UPS Next Day, just because I'm paranoid). You should be fine.

All of the reps that I have spoken to say that as long as they get it by the end of June, you are fine.

QUESTION: If someone goes to a direct loans school, can they choose to get a PLUS or Stafford Loan for one year not through the Direct Loan Servicing Center? I am trying to think about how to break the 1 lender rule for my dad (for the next two years) and my sister (two years as well).

andrewli said: UHEAA also reminded me that if the loans are not in "grace" then they will not be able to consolidate.

I looked on the website and it seems there should be a process to consolidate while still in school.

"Borrowers wishing to consolidate while still enrolled must complete an In-School Consolidation Program Request for Immediate Repayment form. This form, in addition to a completed, original Federal Consolidation Loan Application and Promissory Note, must be received by UHEAA prior to the close of business on June 30, 2005. For more information please contact UHEAA Borrower Services at 877.336.7378 or 801.321.7294"

I'll graduate next year and am trying to consolidate before the interest rates go up this year. I'll call on Monday and see what the story is.

Yes, I think if you apply right away you'll be alright, but you'll still need to pay the extra .6% for being past your grace period.

With uheaa, the extra payments are put towards the principal. Your payment amount is not reduced.

ok I just called uheaa again and this lady said that I need to find out who the current holder of the loans is. Is the lender the holder? or is the servicer or guaranteer the holder, I am pretty sure it wouldn't be the guaranteer, and would think all the servicer does is service it so the lender would be the holder right? These people at uheaa don't seem to want to take time to explain anything, or just don't quite know themselves. I'm getting my loan info from www.nslds.gov.ed and told her that it only told me those three bits of information but she didn't seem to listen she just said find out who the current holder is on the sallie may loans.


ok I looked at the glossary on the nslds website and it says current lender means the holder like i originally thought so I guess I'm good. I'm gonna mail my application off right now. Thanks for all the info.