[Kolzilla41]

I actually took some credit card debt and bought a car with my student loans. My interest rate is %5.25 which is lower than any car loan right now. Jon, the best thing to do is to pay whatever debt you have with the highest percentage rate off. I called my Chase card and asked them if they would accept a settlement on my 10k credit card. I made a lump payment of $5,500 and my credit card was paid off. It did ding my credit report but it falls off in 3 years. As far as consolidating, I don't think they are doing that anymore due to the Fed's owning the student loan market now. I think your best option is to try to renegotiate a lower monthly payment but I'm not sure if they do that either.

[ALUmnus]

I could be wrong (I really should start everything I type with that statement), but I believe that if you consolidate, you lose the ability to defer and must start making payments immediately.

[SuperJon]

I could be wrong (I really should start everything I type with that statement), but I believe that if you consolidate, you lose the ability to defer and must start making payments immediately.

I think you're right. I had to defer so that I could get the consolidation stuff out of the way. The consolidation stuff has an income-based option though so I'll only be paying like $30/mo.

Luckily I have no credit card debt. I have a private student loan with a higher interest rate that I've been paying off since I got it (used it to buy my car and pay for a 497 trip) and I'm paying as much as I can on that one. The only other debt are the Stafford loans.

[ATrain]

If you work for the government or non-profit for 10 years, whatever's left over is forgiven under the stimulus package.

[Sly Fox]

I wouldn't immediately assume that consolidation is your best option. The primary benefit is the convenience of scratching one check (or EFT) a month. But unless you can score a lower interest rate, you might be better off keeping them separate. Are all three loans the same rate and the same size? If not you might be able to knock out a small loan quickly while paying the minimum on the other two. Everyone is correct that if you just pay the minimum then you really are making practically no progress. On the other hand, GSLs are the easiest loans to let slide along without getting harassed by creditors.

[LUconn]

Psychological vs Financial

Psychological: It feels good to pay it off. The only way to do that is throw all of your extra money at it. You'll avoid paying as much in interest obviously, so you'll save money in that aspect, if you plan on doing no other investing. Not having that debt will feel awesome and if you don't pay it off as fast as possible, you will have it for decades. That sucks.

Financial: Pay the minimum only. This is the lowest rate you will ever have on borrowed money in your life. You can throw a dart at a list of investment vehicles and easily find something that earns more interest for you than interest that will be charged against you on this loan. Milk this loan as long as possible because it's cheap and you can do a lot of more productive things with that money than just getting rid of a loan.

There's ground in between but these are kind of your basic choices. And I'm sure it was talked about in the original discussion.

[SumItUp]

I called my Chase card and asked them if they would accept a settlement on my 10k credit card. I made a lump payment of $5,500 and my credit card was paid off. It did ding my credit report but it falls off in 3 years.

7 years

If you work for the government or non-profit for 10 years, whatever's left over is forgiven under the stimulus package.

This is a waste of tax dollars.

[LUconn]

I called my Chase card and asked them if they would accept a settlement on my 10k credit card. I made a lump payment of $5,500 and my credit card was paid off. It did ding my credit report but it falls off in 3 years.

7 years

I almost said that too because that's a pretty big deal. But if the charges are 4 years old and you make a settlement, does that start retroactively on your report and fall off 7 years from the charges?

Either way, $5000 might be worth the 7 year shun.

[LUconn]

If you work for the government or non-profit for 10 years, whatever's left over is forgiven under the stimulus package.

Does this make any sense? It's not like you, personally, are going without profit.

[From the class of 09]

Is the 3% rate you guys are getting Federal loans???

[SuperJon]

But unless you can score a lower interest rate, you might be better off keeping them separate. Are all three loans the same rate and the same size? If not you might be able to knock out a small loan quickly while paying the minimum on the other two.

Haven't read everything past this yet, but to answer this: they're pretty much the same, but if I were to pay three separate loans right now I'd be paying about $300/month. By consolidating, I'll likely be paying under $50 because it will be income based payments.

[PAmedic]

I have no advice for you other than this gem: marry a rich broad.

you're welcome

[SuperJon]

I have no advice for you other than this gem: marry a rich broad.

you're welcome

She's not rich but she makes more than me and has no student loan debt.

[PAmedic]

I have no advice for you other than this gem: marry a rich broad.

you're welcome

She's not rich but she makes more than me and has no student loan debt.

and we're still going with the whole "she's not my sister" thing?

hmmmm

[jmdickens]

undergrad plus law school.......

what was I thinking?

[SuperJon]

If you work for the government or non-profit for 10 years, whatever's left over is forgiven under the stimulus package.

I've heard this multiple places but haven't seen anything "official." Would you be able to link to that?

[JDUB]

What are the current rates for consolidation loans? I'm helping a friend out who is going through these same things, looking at about 20 years of payments right now.

[RubberMallet]

Is the 3% rate you guys are getting Federal loans???

7-10 years ago.

[RubberMallet]

still plunking down 80 bucks a month. still plunking any extra my wife would like to pay into my loan and/or mortgage into the bank.

[SuperJon]

What are the current rates for consolidation loans? I'm helping a friend out who is going through these same things, looking at about 20 years of payments right now.

They're in the 6's right now.

[blwall1416]

Mine are 2.35%. So, you can see why I'm paying off other things before I get to my student loans. Once everything else is taken care of, I'll chunk more into them & knock them out fairly quickly. Well, at least that's the plan.

[ATrain]

If you work for the government or non-profit for 10 years, whatever's left over is forgiven under the stimulus package.

I've heard this multiple places but haven't seen anything "official." Would you be able to link to that?

http://studentaid.ed.gov/PORTALSWebApp/ ... paying.jsp

Loan Forgiveness for Public Service Employees
Under the Public Service Loan Forgiveness Program, if you are employed in a public service job, you may have the balance of your loans forgiven if you make 120 on-time monthly payments under certain repayment plans after October 1, 2007. You must be employed full-time in a public service job during the same period in which the qualifying payments are made and at the time that the cancellation is granted. The amount forgiven is the remaining outstanding balance of principal and accrued interest on eligible Direct Loans that are not in default. For additional details, go to the Public Service Loan Forgiveness page on this website.

http://studentaid.ed.gov/PORTALSWebApp/ ... sh/PSF.jsp

[SuperJon]

So I'm assuming this means I don't qualify:

The borrower must be employed full time (in any position) by a public service organization, or must be serving in a full-time AmeriCorps or Peace Corps position.

For purposes of the Public Service Loan Forgiveness Program, the term “public service organization” means –

A federal, state, local, or Tribal government organization, agency, or entity (includes most public schools, colleges and universities); A public child or family service agency;

A non-profit organization under section 501(c)(3) of the Internal Revenue Code that is exempt from taxation under section 501(a) of the Internal Revenue Code (includes most not-for-profit private schools, colleges, and universities); A Tribal college or university;

or
A private organization that is not a for-profit business, a labor union, a partisan political organization, or an organization engaged in religious activities (unless the qualifying activities are unrelated to religious instruction, worship services, or any form of proselytizing) and that provides the following public services –

Emergency management;
Military service;
Public safety;
Law enforcement;
Public interest law services;
Early childhood education (including licensed or regulated health care, Head Start, and state-funded pre-kin dergarten);
Public service for individuals with disabilities and the elderly;
Public health (including nurses, nurse practioners, nurses in a clinical setting, and full-time professionals engaged in health care practioner occupations and health care support occupations);
Public education;
Public library services;
and School library or other school-based services.

[ATrain]

Based on the criteria, probably not...but you'll probably want to contact a program administrator within that specific program to be sure.

[Kolzilla41]

So I'm assuming this means I don't qualify:

The borrower must be employed full time (in any position) by a public service organization, or must be serving in a full-time AmeriCorps or Peace Corps position.

For purposes of the Public Service Loan Forgiveness Program, the term “public service organization” means –

A federal, state, local, or Tribal government organization, agency, or entity (includes most public schools, colleges and universities); A public child or family service agency;

A non-profit organization under section 501(c)(3) of the Internal Revenue Code that is exempt from taxation under section 501(a) of the Internal Revenue Code (includes most not-for-profit private schools, colleges, and universities); A Tribal college or university;

or
A private organization that is not a for-profit business, a labor union, a partisan political organization, or an organization engaged in religious activities (unless the qualifying activities are unrelated to religious instruction, worship services, or any form of proselytizing) and that provides the following public services –

Emergency management;
Military service;
Public safety;
Law enforcement;
Public interest law services;
Early childhood education (including licensed or regulated health care, Head Start, and state-funded pre-kin dergarten);
Public service for individuals with disabilities and the elderly;
Public health (including nurses, nurse practioners, nurses in a clinical setting, and full-time professionals engaged in health care practioner occupations and health care support occupations);
Public education;
Public library services;
and School library or other school-based services.

Unless you become a media or administration pastor. Maybe that would work.