Pennfrog:

Go with the first option to make sure you lock in your rate before July 1. You don't actually have to then apply for income sensitive terms. I would simply call and ask what they are. They will not likely be anywhere as nice as those offered by direct loans. At that point, you apply to direct loans. If your lender refuses to release your loan information to direct, you need to start writing some letters and perhaps get the Department of Education Loan Ombudsman's office to help you.

Rathipon

Rathipon:

Thanks for all the great advice and homework to help make this happen. I'll post more when I start implementing all of this.

Pennfrog

USCGrouch - since they use a weighted average, the fact that your perkins are at 5% is somewhat irrelevant.. ie, it will bring down your perkins by the exact same dollar amount as it will increase say your staffords..
Oh, and UHEAA and others can delay disbursement for up to 6 months so you wont lose your grace period. I dont see any benefit whatsoever to consolidating with sallae mae. You should go straight to uheaa or allstudentloans.

btw, are you grad or undergrad? I just graduated USC law..
-Andrew

I am in Pharmacy school and looking to take advantage of the opportunity to lock in these low interest rates while still in school. I currently have ~$29,000 in Stafford loans, mostly subsidized. I have 3 years of school left, needing around ~$20,000 per year in future loans. A couple of questions:

1) Should I consolidate the loans I have now while still in school? Why?

2) Do I have time to do so before the July 1st deadline? It looks like some are saying there is no longer enough time.

I apologize for my ignorance on the subject, I have gone through these posts and am trying to understand, but still need some help. My financial aid department is less than helpful. You should feel lucky davidlg16 that your fin. aid office contacts you and tries to help you with this stuff. I'm relying on the expertise of FWers here, so help if you can. It is GREATLY appreciated!

Hey Grouch - I think you may be mistaken re: the single lender rule. As long as you have perkins' held at USC and your staffords somewhere else UHEAA will be able to do it all for you. They will do some magic behind the scenes (they call it two phases and will send you 2 different promissory notes) but as far as you are concerned its all done through them, you fill out the same one form, etc.. you just list both the perkins and the staffords on it (obviously)..

Later,
Andrew

Bump! Can anyone help?

str8flush22 said:I am in Pharmacy school and looking to take advantage of the opportunity to lock in these low interest rates while still in school. I currently have ~$29,000 in Stafford loans, mostly subsidized. I have 3 years of school left, needing around ~$20,000 per year in future loans. A couple of questions:

1) Should I consolidate the loans I have now while still in school? Why?

2) Do I have time to do so before the July 1st deadline? It looks like some are saying there is no longer enough time.

I apologize for my ignorance on the subject, I have gone through these posts and am trying to understand, but still need some help. My financial aid department is less than helpful. You should feel lucky davidlg16 that your fin. aid office contacts you and tries to help you with this stuff. I'm relying on the expertise of FWers here, so help if you can. It is GREATLY appreciated!

If you are like me, and trying to get your UHEAA Loan Consolidation App (click here!!) into UHEAA on time, try that link! Call/go online to get your current loan providers rates, and consolidate with UHEAA --pronto--. Here is their address:
Utah Higher Education Assistance Authority
PO BOX 45202
SALT LAKE CITY UT 84145-0202

Phone: (877) 336-7378

**Remember, July 1 is the deadline. D/L the forms, print out, fill in, mail via U.S. Mail (or Fedex, call them for their street address) and save money. I stand to save ~$200 in 10 yrs with the consolidation. Not bad at all.

update:
I sent an email to UHEAA about consolidating my two loans (two different lenders) and here is what they had to say:

Dear xxxxxxxxxxx,

Thank you for your interest in UHEAA's consolidation program!

Consolidation is a process that takes your FFELP loans, that are
variable interest rate loans, and creates a fixed rate loan. It combines
your loans to one holder, although keeps your subsidized and
unsubsidized balances separate for deferment purposes.

Please be aware that consolidation locks in a weighted average of your
current interest rates. We have Borrower Benefits to help you reduce
that interest rate.

The interest rate that is locked in is the interest rate in effect at
the time the consolidation application is received. Therefore, to lock
in the lowest interest rate, please return the completed application to
us by June 30th, 2005.

If you choose to participate in our Auto Pay program, having your
monthly payments automatically withdrawn from a checking or savings
account, we will reduce your interest rate by 1.25%. Then after 48
consecutive, on time payments, we reduce your interest rate by another
1.00%.

Please log onto our website at www.uheaa.org. On our website you find
the ability to print an application, find information about loan
eligibility, and find repayment calculators that will help you determine
your repayment options.

Also, feel free to contact a Borrower Services representative toll free
at 1-877-336-7378, Monday through Friday, 8am to 5pm, MST, with further
questions or concerns.

Thank You,

Roger
Borrower Services Assistant
Utah Higher Education Assistance Authority
1-877-336-7378
**FYI: Student loan rates are going up, by about 1.25%, so make sure you get your loan app back into whichever company you choose! UHEAA is #1 in my opinion, CFSLoans is also good...and Sallie Mae is the Devil.

Turtleman,

I think the reason you were told this is that Direct loans are not considered FFELP loans, and thus do not give you diversity for the purposes of the single lender rule. I would consolidate the direct loan with UHEAA right now, and the other loan with Wells Fargo. You can then make a new consolidation with UHEAA after both of those are complete. Speak with UHEAA loan origination first to make sure.

Rathipon

Thanks for replys guys,

When i called and asked UHEAA about my loans, I told them i have direct loan from university, and then
i took out another loan while i was in JC, which it shows as a Stafford loan.

When I told them it is from wells fargo, the CSR just said oh it is a single lender, so UHEAA can't do it for me.


"
Turtleman: Is the Wells Fargo loan a private loan, or was it originally Stafford/Perkins (public)?
Was the Direct Loan from already consolidated loans, a true "direct loan", Stafford or Perkins
"

I don't think it is a private loan, since i took it out via school, so I'd say it is a stafford.
My direct loans has not consoldiate yet, both un-sub and sub Stafford loans.
Thats why i want to consodliate my loans now, just graduated.

Thanks !

Turtleman:

This is what I think you need to do.

1. Call up Direct Loan origination center, and create a consolidation for that single Direct loan.
2. Create a separate consolidation with Wells Fargo for the Stafford Loan.
3. Do the above before the end of this month to lock in the rate.
4. After the Direct Loan consolidation is created, reconsolidate it with UHEAA.
5. Once your Direct loan is reconsolidated with UHEAA, you now have diversity for the purposes of the single lender rule. You will want to request that UHEAA 'add on' the Wells Fargo loan within 180 days of completing the UHEAA consolidation.