Student Loan Consolidation

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darkguy2
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Student Loan Consolidation

Postby darkguy2 » Mon Mar 24, 2014 12:48 am

Well I have both private and government student loans and I am thinking about getting rid of my private loans and only have government loans as they have better benefits if I lose my job and such. I have about $12,500 in private loans at 5% (variable) and my dad is the co-signer. I have a year and a half left in school so that means I can get another $15,000 in Stafford loans at below 4% atm. Working at my job at the engineering company I can pay for the rest of my tuition and housing while only needing small loans for food and such.

What I was thinking of doing was to just take out the Stafford loans and use it to pay off my private loans so I have a lower fixed rate loan that also has the nice safety-net benefits built into Stafford loans. My Stafford loans are not through Sally-Mae so that is not a issue. Also I would not be directly using my new loan funds to pay off my old debt as I know that is not allowed. I would use my savings to pay off the loans and the new Stafford loans to pay for the tuition. Another benefit is that my dad will no longer be on the hook for the loans if something happens to me. He already has enough debt as it is.

So is this a good idea? Will it help my credit if I have a payed off line-of-credit which is what my private loans are?
Discover IT - $5,700
Chase Freedom - $5,700
Costco Citi - $13,000
Sallie Mae - $4,000
Chase Sapphire Preferred - $6,000
Chase Sapphire Reserve - $19,500
Citi Double Cash - $6,500
Amex BCE - $13,000

FICOs: Discover (777), SallieMae (764), Amex (767), Citi (772)
FAKOs: CK- TU (760), EQ (760)


darkguy2
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Postby darkguy2 » Mon Mar 24, 2014 1:36 pm

Also just looked up my Stafford loans and it looks like I have just over $13,000 in un-sub loans at 6.8%. Should I pay these off first? The problem that I have realized is that if I pay off these loans I will also have to pay off the interest so that means it will be part of the principle of my new loan and interest will accrue on it. I cannot see the exact interest on each loan but my overall is $1,600. I expect most of that is from the $13,000 loan over several years I have been in school. But if I drop the rate from 6.8% to what I expect to be around 4% will it be better in the long run? I have around 1.5 years left of deferment while in school and another 6 months after I graduate so that is two years that it will not compound. And to add another facet I can write off any interest I pay for my loans so I do not know if I should do it now when I should make around $20,000 this year or after I graduate and make around $50,000.
Discover IT - $5,700
Chase Freedom - $5,700
Costco Citi - $13,000
Sallie Mae - $4,000
Chase Sapphire Preferred - $6,000
Chase Sapphire Reserve - $19,500
Citi Double Cash - $6,500
Amex BCE - $13,000

FICOs: Discover (777), SallieMae (764), Amex (767), Citi (772)
FAKOs: CK- TU (760), EQ (760)

mdl28
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Location: TX

Postby mdl28 » Mon Mar 24, 2014 3:17 pm

I got my loans paid down to $500 and @ that point my loan guarantor paid off the rest of the balance. Called in to be sure and was told I had a zero balance and account will be closed as "paid in full".
MDL

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