Richard asks…
How do I consolidtae multiple student loans?
My wife has a student loan thru the government(direct loans) and a student loan thru sallie mae. Can we consolidate those into one loan? SOmeone told us that the sallie mae loan will be harder to consolidate because its private? Can we even consolidate both loans into one?
Nagesh answers:
They should be able to be consolidated. Just call a Sallie Mae representative, and they can help you directly; toll-free at 888/2-SALLIE (272-5543).
For more information see:
http://www.salliemae.com/
David asks…
Can you consolidate private loans, like sallie mae, with the new Direct Loan or FFEL programs?
I graduated in 2008 and havent even begun to pay back my federal loans, as I am working on paying my Private loans. Does anyone know if you can consolidate private loans under the new Direct Loan of FFEL programs? Are there any options under the new IBR program with the healthcare law that will help me pay these private loans?? TIA!
Nagesh answers:
I am not sure, but check on their website 🙂
Mark asks…
What are available federal loans that I can have?
Hi, I am a undergraduate student at a community college. I am currently having full benefit from Pell Grant and Cal Grant. However, I am in need of a car now and I am unemployed so I would like to borrow some money from the government. I would like to know what kind of loan I can take, what is Direct Loan and Perkin Loan. What would be the interest? And Is that true about I will only start to pay off my loan when I already graduated and got a job? Thanks.
Nagesh answers:
Pham:
The programs that you are asking about are educational loans. As the name implies, money borrowed from these programs can only be used for educational expenses – and it probably goes without saying that a car is not an educational expense.
(Educational expenses are tuition, school fees, textbooks, school supplies, room and board, and a very modest amount of spending money for personal needs.)
If your current Pell and Cal Grants are covering your entire Cost of Attendance, you have no remaining “financial aid need”. If you have no financial aid need, your school will not be able to certify your eligibility for a student loan, and without that certification, you will not qualify to borrow from the government’s educational lending programs.
Since you asked – a Perkins loan is a special type of loan that is intended for students who have demonstrated “exceptional need” on their FAFSA application (but there are exceptions). This loan is borrowed directly from the school, and it will be included as part of your financial aid offer if you qualify. If you didn’t receive an offer to borrow from this program, your school didn’t determine that you “needed” or qualified for this loan.
A Direct Loan (which is about to become the only type of Federal Student Loan) is a loan borrowed directly from the US Department of Education (rather than a private lender who participates in the FSA program). Again, you don’t request a Stafford Loan, your school would have included an opportunity to borrow from the Stafford program in your aid package.
If you did receive a Stafford or Perkins offer and rejected it, your school may be able to reinstate the offer, You’ll have to check with the financial aid office at your school for more information.
Student or not, the Federal government will not lend you money to buy a car. I’m sorry for the disappointing news.
Good luck!
P.S. Stay away from the con artists that will reply to this question, offering you their amazing loan deals. Every one of these offers is a scam.
Jenny asks…
Will i get a subsidized fed loan? Would i be classified as an undergrad or grad?
My bachelors degree is old, 1989. I am in my early 50s driving a truck for a living, and living paycheck to paycheck. I have no savings, and I am unsuited to be a trucker. So I want to go back to school and get a vocational type degree from my local CC. According to what I have read, subsidized direct loans are available only to undergraduates. Will I be considered an undergraduate?
Nagesh answers:
No, you are considered a graduate as you already hold a Bachelor’s and no longer eligible for undergraduate financial aid.
Laura asks…
is it smart to pay off student loans with a credit card?
lets assume i can find a way to have my credit card pay for my direct loans. credit card is 0% apr for 12 months and loans is 3.5% fixed. Assuming i can pay off everything in 12 months, should i do it? does it look bad on my credit report since students loans are “legit” while credit cards are “debt”?
Nagesh answers:
That is one of the worst things you can do. Student loan rates are very low compared with consumer credit rates. Even if you have an introductory rate of 0%, the rate will go up and at that point, you have no way to convert that debt back to student loan debt. Also, student loans don’t affect your credit score the way that credit card debt does. Don’t do it.
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