Recent graduate looking for Advice on Student Loans.

[sethbw]

Hi,


I've got loans from several different banks at varying interest rates. I want to consolidate, but I'm not sure if doing so will result in an overall higher interest payment. Does anyone have any instructions for figuring this out on my own?


Thanks,
Josh

[jIM_Ohio]

I would calculate a few numbers now

1) add up principal amounts on each loan
2) calculate interest paid each year until paid off
3) estimate the probable payoff date

then for every consolidation offer, compare all of those numbers

if interest paid goes down and the repayment period is constant, then you know effective rate went down.
if interest paid goes up, make sure the repayment period is the same- some consolidations might take a 10 year original repayment period and extend it to 30 years, so while the monthly payment goes down, the interest paid goes way up.

[Brad]

If it all possible don't extend the payment period. There is nothing worse than paying off a debt for longer than you originally needed the loan for. Find a lower interest rate and ramp up your monthly payment.

[whitewater30]

Pay them off as fast as you can. Even if it means you have no life for a year or two.

[Seeker]

The following link provides general guidelines for potentially consolidating Private SLs:

Student Loans: Private Loan Consolidation

What it amounts to is choosing one of the companies that you currently have your loan(s) with and asking a bunch of questions. Specifically you'd want to consolidate, get a fixed interest rate over the whole of it, and preferably a lower-fixed interest rate . Remember that you don't have to agree to anything or do anything just by talking with people and exploring your options.

If the loaning don't want to deal with you, then go to a larger Student Loan company (google student loan consolidation) to find some info, and call them. Ask the same questions and also how you'd go about transferring your current loans with them.

I would not advise (unlike the article) transferring your student loans to a 0% Credit Card. Not unless you have a sufficient income or savings to allow for payoff of the whole before the interest rate rises.