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Author: redhed Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308225  
Subject: More Student Loans Date: 12/9/1998 7:40 PM
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Re: the consolidation and lower interest rates on the student loans ... I went directly into grad school after undergrad so am deferred from paying my student loans for now. I also got a graduate assistantship so was able to stop taking out any more loans, but the interest on the old loans just keeps growing ... kinda like Lucy's rice from the old TV program! I'll be finished with my course work in May and hope to be able to start a paid internship in the fall. Does the consolidation and lower interest rate before 01/31/99 apply to me as well? I have to slow my rising debt some how.

Thanks for any help, Redhed
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Author: AKJayhawk Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5847 of 308225
Subject: Re: More Student Loans Date: 12/10/1998 4:38 PM
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but the interest on the old loans just keeps growing

Redhed,

You mentioned that your loans are "deferred" while you're in grad school. What type of loans are they? As long as they're federal loans (Perkins/NDSL, GSL, Stafford, etc), interest does not accrue during an authorized deferment. As always, read the fine print, and check with your Student Financial Aid office at your school. They'll be able to fully explain the ins & outs.

Hope this helps, from one redhead to another :)

Jeff

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Author: redhed Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5851 of 308225
Subject: Re: More Student Loans Date: 12/10/1998 5:58 PM
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"As long as they're federal loans (Perkins/NDSL, GSL, Stafford, etc), interest does not accrue during an authorized deferment."

Jeff,

I actually have 2 Stafford loans ... one (the small one, of course) is subsidized, which means that interest is deferred while still in school. Unfortunately, the other one (the mucho grande one) is unsubsidized which means the interest is NOT deferred while still in school and just keeps accruing. Our income is just high enough to keep me from getting a 100% subsidized loan. But, thanks for thinking of me! Any other ideas?

Redhed

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Author: ZorroFool One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5882 of 308225
Subject: Re: More Student Loans Date: 12/13/1998 1:08 AM
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Redhed,

Here's my advice. Go check out the US Dept. of Education website and call their 800 number (1-800-557-7392). Give them the details and find out what they say.

I'm looking through the instructions and info that are part of the downloadable application on the website, and it reads like bad VCR instructions. Since I am not in school anymore, I didn't think to ask them about your kind of situation. (Sorry!)

When you talk to them, make sure you have them clarify when interest is going to start accruing and when payments would have to begin on the new consolidated loan. (Of course, this assumes that you qualify to begin with, and they should be able to tell you that.) There's nothing more disappointing than to think you've just gotten a great deal with a lower interest rate and then have the lender tell you to pony up right away when you were expecting a longer deferment/grace period.

Zorro sends Good Luck! :)

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Author: redhed Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5886 of 308225
Subject: Re: More Student Loans Date: 12/13/1998 5:12 PM
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"There's nothing more disappointing than to think you've just gotten a great deal with a lower interest rate and then have the lender tell you to pony up right away when you were expecting a longer deferment/grace period."

ZorroFool,

Hmmmmmmmm ... hadn't even considered that notion! Ooops! I definitely will follow your suggestion to give them a call and, in fact, am printing out your post as I type so that I can be sure to ask all of your questions.

And, I agree with your assessment of their instructions. Following the directions for putting my kids' swing set together was easier!

BTW: How good are you with carving a "Z" with your sword? Doesn't that get hairy sometimes?

Redhed


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Author: ZorroFool One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5897 of 308225
Subject: Re: More Student Loans Date: 12/14/1998 3:15 PM
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:)

Jeesh, I almost blushed on that one! But I am proud of my carving abilities!

Take good luck on your student loan journey, Red!

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Author: redhed Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5988 of 308225
Subject: Re: More Student Loans Date: 12/21/1998 4:13 PM
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"Here's my advice. Go check out the US Dept. of Education website and call their 800 number (557-7392). Give them the details and find out what they say." "When you talk to them, make sure you have them clarify when interest is going to start accruing and when payments would have to begin on the new consolidated loan. (Of course, this assumes that you qualify to begin with, and they should be able to tell you that.) There's nothing more disappointing than to think you've just gotten a great deal with a lower interest rate and then have the lender tell you to pony up right away when you were expecting a longer defer- ment/grace period."

ZorroFool:

I've been busy heeding your advice and found out/accomplished the following:

1) You may consolidate your loans and get the lower interest rate while still in school IF you have a William D. Ford Direct Loan ONLY.

2) You will get a deferment on the new loan but must call the service center to request a form and reapply .. it won't be an automatic carryover.

3) Interest will accrue and payments begin just as they did on the old loans.

So, I've already applied and my loans are being processed as we speak. Thanks for the help, my masked friend. (Sorry I made you blush earlier .. but, can one see you blush with your mask on? Or, do we just have to imagine what it might look like? -or- where it might actually be noticable?)


Redhed

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Author: ZorroFool One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6426 of 308225
Subject: Re: More Student Loans Date: 1/22/1999 6:24 PM
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Hey, Red,

Just called the US Dept. of Education (800-557-7392) and checked on the status of my application. It's in progress (almost done), and they've got me locked and loaded for the 7.46% interest rate. Woo-Hoo!!!

Have you heard anything on yours? My fingers are crossed for you!

Foolishly yours...Z

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Author: redhed Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6443 of 308225
Subject: Re: More Student Loans Date: 1/23/1999 4:40 PM
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Z Man,

Hmmmmmmm .. will have to give them a call. Thanks for the heads up! Count that as another Z you carved for truth, justice and the American way .. no, wait! That was Superman. Well, count it as another Z that you carved for good.

Redhed

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Author: redhed Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6547 of 308225
Subject: Re: More Student Loans Date: 1/28/1999 8:34 AM
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Hey ZorroFool,

Had a hard time getting through to the US Department of Education .. once got a message that said they were having an "emergency" and to call back another day?!?! What's up with that? Anyway, they finally told me that they were still in the beginning phase of processing me (they were still verifying the amount of my loans) .. and I applied the same time you did. Oh well. As long as I've applied in time I'm fine, but I hate to have my interest accumulate at the higher rate for any longer than is absolutely necessary. :(

Thanks for thinking of me. Redhed



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Author: RecoveringFool Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6548 of 308225
Subject: Re: More Student Loans Date: 1/28/1999 10:49 AM
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<< once got a message that said they were having an "emergency" and to call back another day?!? >>

Having worked for the government in DC quite awhile ago, this means it was snowing ;)

Jacki

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Author: redhed Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6551 of 308225
Subject: Re: More Student Loans Date: 1/28/1999 12:23 PM
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Ahhhhhhh! So, that's what it means. Thanks Jacki. You are a woman of vast knowledge. :)

Redhed

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