Student Loan Headache, need help!

Avatar for aerandel
iVillage Member
Registered: 03-25-2003
Student Loan Headache, need help!
5
Mon, 05-15-2006 - 7:29pm

Ok, so I posted a few days ago about my student loans.

                          

             

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Mon, 05-15-2006 - 8:10pm

This is not a "number crunching" response - it's my own gut reaction.

All my best,
Danni

iVillage Member
Registered: 05-09-2005
Mon, 05-15-2006 - 10:54pm
I don't think you can defer when in school unless you are at least 1/2 time -- and if you are teaching, it would be difficult to be in school 1/2 time. I've never heard of a state that requires a degree after graduation -- most require some units or inservicing every 5 years in order to renew the credential. I know lots of teachers who did take extra units, but not necessarily in a graduate program in order to move over on the salary scale which gave you more money for every 15 units of upper division units you took. You could take the units in a graduate program over time, but at least in California it is not required.
On the other hand I agree with Danni -- it's always good to have the option to defer if you need to.
Good luck on this confusing decision. I have heard that the rates are supposed to go up in July.
Megan
iVillage Member
Registered: 01-25-2006
Tue, 05-16-2006 - 12:18am

Aerandel,
Wow, this isn't really straightforward is it? Let's see...

Well, sounds to me like the CFS loan is NOT a student loan anymore if you consolidate that. I agree that you want to make sure you still have student loan 'rights' including assuring that, if you went that way, you could still deduct the interest. No deferment though would be a major negative.

In terms of your grandmother cosigning, that is a tough one. I probably would ask for it since it is a limited time horizon of only 2 years until you can get her off of there. I would not ask her if you had any reason to think that the impact it would have on her ability to acquire any debt she might personally need would be problematic. Any lender will hold her accountable for that loan amount even though she's just cosigned.

Be careful also of putting through too many applications because that can negatively affect your credit score if there are too many inquiries.

I think I would go with Sallie Mae w/the cosigner. Did you ask them if that was the very lowest payment available on the fed loan yet? That might buy you some breathing room.

Peg

iVillage Member
Registered: 12-12-2004
Tue, 05-16-2006 - 12:22am
Hi, aerandel--Well, I found the article in the weekend paper about student loans. There were several folks that mentioned that the student loan hike, scheduled for July lst 06, will be the biggest increase seen, from 1.5 to 2 percentage points. Variable interest rates on fed student loans are going to be reconfigured and recalculated May 30th '06. (there is a FinAid.org website for college financing info). Interest rates on new loans granted after 7/06 will have larger fixed interest rates. Stafford loans are forecast to jump to 6.8% fixed from variables that have been historically low. PLUS loans--same thing--fixed 8.5% from 6.1% The article mentioned that consolidation apps must be in by June 30th '06., and they recommended consolidation a month before the deadline/. It went on to say that student loans can be consolidated several times. There were several web sites listed: StudentLoanConsolidator (www.studentloanconsolidator.com), www.loanconsolidation.ed.gov/borrower/borrower/shtml, www.salliemae.com/manage/deferefore/html and www.finaid.org. Interesting article. Whiz.
Avatar for endomagazine
iVillage Member
Registered: 11-09-2004
Wed, 05-17-2006 - 11:03pm

Hello,


I would suggest *not* asking your grandmother to cosign your consolidated loan. When a bank mentions that a cosigner would improve your interest rate, what they are really saying is: "We're not sure you will be able to pay these payments so we need someone else to bill if you default."


You might tell yourself that you won't default and that you'll remember to take your grandmother's name off the loan in 2 years, but if you are hit by a truck,

Sincerely,
Lindsey Schocke

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