(Closed) Student Loan consolidation

posted 6 years ago in College
Post # 3
911 posts
Busy bee
  • Wedding: September 2012

yes someone please fill us in! lol

Post # 4
7293 posts
Busy Beekeeper
  • Wedding: October 2011

Ditto! Sorry I can only offer that you are not alone lol Would love to know too!

Post # 5
1352 posts
Bumble bee
  • Wedding: April 2012

Oh yeah I need this info too! Marking for later 🙂

Post # 6
692 posts
Busy bee
  • Wedding: March 2013


There are two types of consolidation offered by the government for public loans. Are you talking about the  traditional Direct Consolidation ?  Or are you talking about the new incentive, (Special Direct Consolidation) that started Jan 2012 and ends on June 30th? Just want to be clear. This may be where some of the confusion stems from.

The key to understanding how the new incentive works is to understand the “traditional”.I would not make any decisions until you truly grasp the difference between the two and the effects they will have on your finances in the LONG RUN.

First understand the info on the traditional Direct Consolidation on this website: http://loanconsolidation.ed.gov/help/faq.html

Then get the scoop on the new “Special” incentive here: http://studentaid.ed.gov/PORTALSWebApp/students/english/specialconsolidation.jsp’ defer=’defer

I consolidated my Hubby/FI’s loans under the “traditional” in December and I am now considering consolidating my loans under the “new/special” before June 30th. One is not better than the other, it really depends on your specific situation.

What repayment plan are you under at the moment? What are your interest rates for the qualifying loans?

Anyway, if you have more specific questions I can try to help.

Post # 7
11234 posts
Sugar Beekeeper
  • Wedding: August 2013

Hey, I did this not too long ago. It’s not that hard, and it helped lower my payments by about $200/mo (and then I switched to income-based repayment).

My only advice is to watch your emails like a hawk! I was under income-based repayments because of my job, and had payments deferred until next year, so I didn’t pay attention to the “statements” that I got in my email. I had them from Direct and from Sallie Mae (and then I consolidated away from Sallie Mae). I finally opened the most recent one from SM to find that they had moved my loans AGAIN, BACK to SM, AND the repayment plan had changed, so now, having just lost my job, I owe money again until I can get the repayment plan changed. Even if I had read the email right away, there would not have been enough time before payment was due to process my paperwork. ARGH.

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