Help! Consolidating student loans?

posted 3 years ago in Money
Post # 3
Member
845 posts
Busy bee
  • Wedding: August 2015

@OnceUponATime:  I don’t know what AES or Nelnet are but you could get a line of credit and pay them both off with that, so then you’ll be making one payment to the LOC. This only makes sense if it’s a lower interest rate than what you have already.

Post # 4
Member
6073 posts
Bee Keeper
  • Wedding: August 2012

@OnceUponATime:  I actually consolidated my undergrad loans with Nelnet way back when.  They are paid off now.

Do you mean double the payment or two payments aka two checks?  I don’t know if your payments will be cut in half, but you will only have one payment per month.

 

Are your current loans at different rates?  Are the rates fixed or variable?

Post # 5
Member
964 posts
Busy bee
  • Wedding: October 2014

@OnceUponATime:  This is slightly off topic, but if possible look into income-based repayment or income-contingent repayment. I’m looking in these options now and am really surprised by how many benefits come with them (if you are talking about student loans).

 

Post # 6
Member
2675 posts
Sugar bee
  • Wedding: May 2014 - Madison, WI

I consolidated my loans through a Federal Direct Consolidation Loan when I got a job in public service. It was recommended to me since if needed I would then be eligible for public service loan forgiveness after 10 years of payments during my employment. The application was online and pretty easy. Once approved they then paid off my previous loans and I started paying them once a month. It lowered my interest rate a little too and put me in a good position for the future.

Post # 7
Member
1093 posts
Bumble bee
  • Wedding: May 2014

@OnceUponATime:  Some of my loans are serviced with Nelnet and I consolidated them all. I also am doing the IBR; income based repayment plan. As far as I know, not all loans will be able to be consolidated

Post # 8
Member
7 posts
Newbee
  • Wedding: October 2013

I work in Financial Aid. If you wish to consolidate your federal loans you may start here: http://www.loanconsolidation.ed.gov/. I would begin soon as they are planning on beginning a new process to do so shortly. Please be aware that this process can take 2-3 months so you will need to be prepared to make your montly payments until the process has been completed and your servicer has notified you of you new payment amount and due date.

If you have a private loan, you cannot consolidate these with your federal loans. If you need further information on the types of federal loans, and need to know your history, you can log into http://www.nslds.ed.gov which maintains the federal loan history for all students in the US. You will need to know your FAFSA PIN # to do so.

Hope this helps!

Post # 10
Member
295 posts
Helper bee

good advice above.  google how to consolidate student loans. 

Post # 11
Member
6073 posts
Bee Keeper
  • Wedding: August 2012

@OnceUponATime:  Each lender should have a website and you can set up a login and password so that you can monitor your accounts online, where you can see the rate and if it’s fixed or variable.  I would start there or call them up!

 

Here are some links on Public Service Loan Forgiveness

https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service

http://studentaid.ed.gov/sites/default/files/public-service-loan-forgiveness.pdf

http://studentaid.ed.gov/sites/default/files/public-service-loan-forgiveness-common-questions.pdf

 

 

What kinds of employment qualify? 

Qualifying employment is any employment with a federal, state, or local government agency, entity, or organization or a not-for-profit organization that has been designated as tax-exempt by the Internal Revenue Service (IRS) under Section 501(c)(3) of the Internal Revenue Code (IRC). The type or nature of employment with the organization does not matter for PSLF purposes. Additionally, the type of services that these public service organizations provide does not matter for PSLF purposes. 

A private not-for-profit employer that is not a tax-exempt organization under Section 501(c)(3) of the IRC may be a qualifying public service organization if it provides certain specified public services. These services include emergency management, military service, public safety, or law enforcement services; public health services; public education or public library services; school library and other school-based services; public interest law services; early childhood education; public service for individuals with disabilities and the elderly. The organization must not be a labor union or a partisan political organization.

 

 

What is full-time employment?

You must meet your employer’s definition of full-time. However, for PSLF purposes, that definition must be at least an annual average of 30 hours per week. For purposes of the full-time requirement, your qualifying employment at a not-for-profit organization does not include time spent participating in religious instruction, worship services, or any form of proselytizing. 

If you are a teacher, or other employee of a public service organization, under contract for at least eight out of 12 months, you meet the full-time standard if you work an average of at least 30 hours per week during the contractual period and receive credit by your employer for a full year’s worth of employment. 

If you are employed in more than one qualifying part-time job simultaneously, you may meet the full-time employment requirement if you work a combined average of at least 30 hours per week with your employers.

 

 

 

 

 

 

Post # 12
Member
2675 posts
Sugar bee
  • Wedding: May 2014 - Madison, WI

@sienna76:  This is exactly the information I got for public service loan forgiveness. I have worked in both federal and local government. My direct employer is the government agency. 

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