Neglected student loan question????

[nuQ]

Alright, I know this is bad, but I've really let my student loan go unoticed for a few months, actually, my six months has been up for a few months and don't know where to start. I owe about 40K, and was wondering the most cost effective way to go with the payback. When i get letters from my state education loan office there are tons of monthly payments, but I just got a student loan consolidation letter which appears to be a cheaper alternative!!! Any input would be appreciated!!!! Thanks Jeff

[jEzTeR]

Check out the interest rates before consolidating. Be sure and get set up on a payment plan and make your payments on time. If you don't then you will ruin your credit in a hurry.

[Mr1der]

yeah...

they'll jack up the interest, but they're pretty lenient on taking car of it...

take care of it though, don't sit on it.

[Zydeco]

I hate my student load payment, I like what it got me though.

[fiznat]

I'm looking into consolidating now myself actually... its a little more complicated than just looking at the interest rate though.

You wanna consider if the interest rate is going to be variable (changes w/ the prime rate) or fixed (always stays the same)... You also need to check out the payment period. A lot of companies give you longer payment periods in order to lower the monthly payment... It looks like you're paying less at first but actually you're paying more. Also look for incentives like interest rate reductions for automatic payment, on time payments, etc etc...

Just call around and see what people will offer ya-- it's definetly worth a few hours of your time, could save you hundreds or thousands of bucks....

As far as being late on your payments, GET ON THAT right now! My girlfriend worked as a loan officer for a while, and seriously- student loan payments are the #1 credit builders or destroyers. It's the most money you've ever borrowed in your life, you cant really afford to be delinquent on it now. At least call up the loan companies and tell them your situation, see if you can work out some sort of deal. They'll always work with you to get something instead of nothing. Just ignoring them is the absolute worst thing you could do...

Good luck man.

[Cold_Zero]

nuq-Call your lender/Servicer and find out what options are available to you. Lenders and servicers dont like to have bad accounts on their books (It messes up their default rate) and they are typically willing to work with you to clear up the delinquency. Sometimes lenders and servicers will throw out the option of a consolidation to bring you current. There are also deferment and forbearances that you can apply for to bring your account current. I would highly suggest that if you are going to consolidate your student loans that you consolidate with a consolidated FFELP loan. This way your loans and you are protected by the Federal Regulations that govern this business. You typically get a better rate and they offer payment schedules that are flexible.

If I might ask, who are your lender and Servicer? IM me later if you want to talk about this.bud