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Debt Relief – Insolvency – Bankruptcy Information » Student Loan Help » No more consolidation for student loans?

No more consolidation for student loans?

So, I just graduated and found out that my lender no longer does federal consolidation loans and my payments are outrageous. Of course, bad investements on my part long ago. Are there any other options? I could use the graduated repayment plan but that is still pretty high and can go up after two years. I’m worried that with the current job situation, I may not have a job in those next two years.

Any advice? Any lenders still doing this? Help!
Btw my lender is citibank.


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2 Responses to "No more consolidation for student loans?"

  1. Woelfe says:
    Yes, many of the FFELP lenders are closing down consolidation business as it is no longer profitable for them to do so. Plus there is a lot of mayhem going on with the student loan market at the moment as well.

    If you have federal and private loans through them you cannot consolidate these together anyway. And most private loan consolidations tend to cost you more money than paying off your original lender.

    Federal consolidations are still possible through either a willing FFELP lender, or through the governments Direct Lending program.

    You should really only consider a consolidation of federal loans if you have variable rate Stafford loans that have not yet been consolidated and if so, I would suggest waiting until after July 1st when the new rate is established for the new fiscal year. It is expected to drop in the neighborhood of 3-4% interest rate. If your Stafford loans are already fixed rate (any loans disbursed after July 1, 2006) then it is a moot point to consolidate really.

    Where your Stafford loans are considered, they are automatically scheduled for a 10 year Standard repayment plan. Depending on the level of debt you have you may be able to extend that repayment timeline, which will lower your monthly payment making it more affordable, but costing you more in interest over the life of the loan. Talk to your lender about the different repayment options available and see if you can find one that fits you a bit better.

    Once you have a lower federal monthly payment, do everything you can to pay off private loans sooner. Get a second job if you have to, or eliminate unnecessary expenses that you can live without in the short-term.

  2. sara sentor says:
    Danna, getting student loan consolidation when you are suffering from bad credit is quite tough but however not impossible. There are number of student loans are still available , Federal Student Loan Consolidation is a good option for you as well. Check this out for student loan consolidation companies in US:

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