Government Debt Consolidation Loans – Update

Arthur asked:


Like a fool, I went to a very expensive school that I could not afford, but got the tuition from Sallie Mae. They are a terrible company and I do not want to work with them anymore.

My question is:
What would be a good company to go through in consolidation all my Sallie Mae loans?

I know I would most likely need a co-signer, which I don’t have.
I didn’t know I cout try to re-negotiate the interest rate. They haven’t been the nicest company. After my co-signer forgot about approving one of the loans, he had me (sort of unintentionally) accused of identity theft. It wasn’t the kind of thing that involved law enforcement, it was just with Sallie Mae. I explained the situation to them and they always flat out refuse to work with me on any issue.

I was just on the phone with a rep a little while ago and she asked me why I’m having trouble paying the bill. I explained to her how difficult it is to pay more than a thousand dollars per month while working part-time. She just paused for a second and then asked for the money.

Kansieo.com

A Procos asked:


Consolidating student loans, like debt consolidation of traditional loans you can also opt for federal student loan debt consolidation.

Consolidation means your loans are bundled together into one new loan at a different rate of interest.

If you plan to consolidate your loans, do not include your spouse’s loan with yours. The danger of consolidating your and your spouse’s student loans is that if something happens to either one of you, your spouse will still be responsible for that loan. The burden of your private loan repayment would fall upon your spouse. This is where a life insurance policy beneficial, with your spouse as a beneficiary. This protects them from having to pay back your loan. Though there are no deadlines in federal loan consolidation programs, there are certain requirements that need to be fulfilled:

Your loans have to be fully disbursed to be eligible for Federal Consolidation Loan program.

You are no longer enrolled in school.

You are actively repaying your loan (including deferment or forbearance), or are in your six-month post-graduate grace period.

Your minimum consolidated loan amount is $10,000.

The best time to go for debt consolidation of your federal student loans is when you still are in your grace period, because of the lower in-school interest rate.

Every student has his or her reasons for going in for student loan debt consolidation, and so would you. These are some of the reasons why you should consider debt consolidation of your federal student loans:

Fixed rates of interest.

Lower monthly payments.

Payment incentives that save you money.

Single payment each month in place of multiple payments to different loan issuers.

New or renewed deferments.

You will need the following information when applying for consolidation of your federal student loans:

The balances and interest rates of your current eligible federal student loans.

The names and addresses of the companies that hold or service your federal student loans.

These are the companies that handle billing, collections, deferments, etc. of your current federal student loans.

The names and addresses of two personal references in the United States of America.

Federal government student loan consolidations have a fixed rate of interest.The fixed rate is calculated by the weighted average of the interest rates of the individual loans being consolidated. These are rounded up to the nearest 1/8 of a percent, up to the maximum of 8.25 percent.



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