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Hi Everyone,

No doubt, you'ved received offers for re-consolidating student loans. I consolidated my Subsidized and Unsubsidized Direct Loans in 2003. I would now like to take advantage of one of these offers to reconsolidate and increase my interest reductions. Currently I get the .25% off for electronic payments off of my fixed rate from Direct Loans Servicer. Do I have better options?

Reviewing previous posts, I am going to look into the Utah Higher Education Access Authority (UHEAA).

However, I have also been contacted by NextStudent, ACFS, and Student Loans Xpress to get up to 1.0-1.5% reductions.

Do you recommend any of these services? Am I better off sticking with the uh, hem, reliability of the government program? Does that even matter?

I appreciate your input!

Thanks!

-Hozer02
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Sorry Hozer02, once you're done, you're done.

Student loan programs only allow you to consolidate once. In order to re-consolidate, you'd need to have other, unconsolidated loans to roll into your consolidated ones.

Even then, your interest rate is weighted, so you'd probably get a miniscule amount of interest reduction.

It's one of the hidden catches of consolidation.

b
(she of the 7.75% consolidation interest rate)
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Thanks, bleplatt!

These offers, although called Re-Consolidations (perhaps too loosely!), seemed to just take over your Direct Consolidated Loans and offer to reduce your interest by taking reductions off your current fixed interest rate. It's a little confusing to me, but by your definition, what I am trying to do would not be a re-consolidation.

I was very weary of these offers, especially since so many seemed to have varying types of incentives with convoluted explanations. I won't consider these unless someone recommends ones that are highly reputable.

The lenders seem to be telling me that since I have consolidated through Direct Loans, they are able to take over my loan and offer these reductions. (something they were not able to do a year ago)

Any truth to this? Or am I just more confused?

Thanks for your help!

-Hozer02
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The lenders seem to be telling me that since I have consolidated through Direct Loans, they are able to take over my loan and offer these reductions. (something they were not able to do a year ago)

Any truth to this? Or am I just more confused?
==========

Under the Act that funds Student Loans (I think its the Higher Education Act, if you have all your loans with one company (a single lender), that single lender has the right of refusal to sell the loans. And most refuse. :D

I got those offers as well. When I called to ask about it, their interest in me waned to non-existant when I told them i'd already consolidated.

FWIW, most people on this board have had excellent luck with Direct Loan. It's all the other ones that are so crappy.
b
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b
(she of the 7.75% consolidation interest rate)


So, I suppose you wouldn't want to know what my consolidation rate is. Eh, bleplatt?

jmc, she of the 2.85% consolidation interest rate

p.s. still in-school w/ new loans but there's no way in heck I'm consolidating new loans w/ the super cheap rate. :)
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she of the 2.85% consolidation interest rate
===================

grumble grumble

:D
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grumble grumble

Yeah, well look at it this way, I'm still in school & you not only have a real job but you've got tenure!

jmc, cheap & easy ;)

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You CAN re-consilidate, even if you don't have any other loans to add to the mix.

The laws let you consolidate again, but only with the Dept. of Ed (Direct Loans), if the income contingent plan with your current lender is not acceptable to you. This also works if you haven't consolidated but all your loans are with one lender - they have to release to Direct Loans (because it's the feds) if you decide their income contingent plan is not acceptable to you.

However, once you're with Direct, you can then go to UHEAA or wherever.

Look into it- read everything, make sure you understand, but it may help you reduce your rate a little.

-a-
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Thanks everyone...this the response I got from UHEAA (below)...from what I have heard from other Fools, they sound just as reputable and reliable as the Fed Direct Loan Program, so I think I will switch over and get UHEAA's borrower benefits...with Fed, I am only getting the .25% reduction for electronic payments...

Dear XXXX,

You ARE able to re-consolidate student loans that you previously
consolidated with Direct Loans.

If you choose to participate in our Auto Pay program (having your
monthly payments automatically withdrawn from a checking or savings
account), we will reduce your interest rate by 1.25%. Then after 48
consecutive, on time payments, we reduce your interest rate by another
1.00%.

We offer an online consolidation process for your convenience.

In order to consolidate your loans, please visit our website
www.uheaa.org

Click on Account Access. If you do not have a UHEAA online profile,
please click on 'Create an Account' and it will allow you to set one
up.
Once you are logged into your account, choose "Apply For a Loan" from
the menu, and select "Consolidate Your Loans."

If you have any questions past this point, feel free to give us a call,
and we will be glad to assist you in this process. We can be reached at
1-877-336-7378, Monday through Friday, 8am to 5pm, MST. For quality
assurance and timely assistance, please direct further email inquiries
to uheaa@utahsbr.edu.

Thank you,

XXXX
Borrower Services Assistant II
Utah Higher Education Assistance Authority
1-877-336-7378



>>> ORIGINAL MESSAGE >>> FROM < XXXXXX>
Hi,

I was referred to you and am wondering if you re-consolidate student
loans? I already have consolidated with the Federal Government's
Direct
Loan Service at a fixed rate. I was told you may offer
re-consolidation
with interest deductions for automatic and on-time payments.

I appreciate your response.

Thank You!

XXXXX
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