Post # 1
I have $65,000 in student loans and pay approx. $900/month. I am not having any trouble paying each month but I owe to 7 different companies. I really want to consolidate just so I am only paying to 1 company. I know it ends up costing you more in the long run though because of interest.
Would you recommend consolidating in this case? If so, any companies you know are good. I have been looking into Wells Fargo since I already have a loan with them.
Post # 3
It depends on your rates and your monthly payments re: how long it takes you to pay your loans off. I wouldn’t be able to handle paying seven different loan companies at once! Are you in the US? If so, I’ve had great experiences with American Education Services. They’ve always been super helpful if I’ve had an issue or, like when I moved here, if my circumstances changed and I needed to adjust my payments.
Post # 4
I don’t know if this is relavant at all, but I despise Sallie Mae. My student loans go through them, and every time I have to deal with them I tear my hair out.
I’m intrested to see other responces, because I’m quite eager to jump off the Sallie Mae wagon as soon as possible. 🙁
Post # 5
I work at a bank in Australia… so probably no help to you? I’m pretty sure our loan work completely differently?
But… over here it can be worth it consolidating, or it can not be worth it. I would just find a reputable bank that has a reasonable interest rate on their loans and see what the monthly repayments will be. It will certainly be a lot easier make one payment, rather than 7! You will probably find that the monthly repayment is a lot cheaper than what you are currently paying on all seven of them. If that’s the case, try to keep making the same amount of repayments that you’re making at the moment, and the interest shouldn’t be too much of an issue.
Of course, if you have any loans that have an extremely low interest rate, I wouldn’t condolidate those ones into the new loan. But even if you can consolidate a few, it makes things easier.
Do the calculations to see if it’s worth while. If you have a good banker – like me 😉 they should help you work it out and see if it’s worth it.
Edit: Do NOT go to a loan shark or a broker! I don’t know about America, but in Australia, they’re only out for commission and cannot be trusted.
Post # 6
Since you’re managing to pay on time with no problems I say no. SO had problems and is with a consolidation company and last time he phoned them they told him it would be more cost effective to pay his creditors direct especially since he no longer struggles with repayments.
Post # 7
Student loan interest is often tax deductible, so you might not be paying much more in the long run.
Post # 8
If you can handle the payments and the consolidation is going to cost you more then leave it as it is.
Are the payments debited from your account? If so why not open a seperate account that the payments come out of on the same day and you can just make sure the money is in there when the payments due!
Post # 9
Thanks for the advice. I actually have 9 (just recounted) companies that I go through. All but one come out of my account monthly so I don’t do too much with them but when having to change info and what not it is a pain. I am in the middle of changing my name and it is a nightmare. I have called all places and now I need to send a letter and copy of my marriage license to each. I will look into further and see if it works out to consolidate.
@SoupyCat: Yeah and it would be a lot easier come tax season if I didn’t need to get infomation from 9 companies.
Post # 10
Since you’re not having any trouble paying it, I’d say no. SO was having major issues getting everything paid so he consolidated his loans for a lower payment and only one company to pay to. If you were in that situation I’d say do it as it takes a LOT of stress off you, but you’re not. So stick with it and deal with the craziness of 9 companies.