Not sure if this is the right board: Student Loans

Help! I don't know what to do. I have two loans (one is a parent plus and the other stafford) with Sallie Mae and they are KILLING me each month. I made the HUGE mistake of enrolling in an online school back in 2003 because I knew I was losing my job. Well, I ended up finding a pretty good job that had nothing to do with what I was taking classes for and after almost three years, stopped the classes. I'm left with A LOT to pay and I've been paying since 2007 now.
My brother told me to look into Nelnet for consolidation but from what I read, it's not always in everyone's best interest to consolidate. I just don't know if I'll end up making things harder for myself. This sucks.
Anyone have any advice?

Re: Not sure if this is the right board: Student Loans

I think you might be able to do a graduated loan repayment? You pay a certain amount based on your income now, and it gradually increases each year.

You should call Sallie Mae and see if they can do anything. There are a number of deferment programs too, but I am pretty sure the loan still accumulates interest during that time, so probably not something you would want to do unless you were really in dire circumstances.

I feel your pain! I consolidated back in 2004 (before the financial crisis) and was able to lower my payments significantly (by lowering the interest rate and signing up for electronic payments). It stinks that the same options aren't available to graduates today.

Re: Not sure if this is the right board: Student Loans

Definitely call Sallie Mae and let them know you are having difficulty making the monthly payment. They will work with you and get you on a payment plan that can work. Also see if they will consolidate your loans for you. The rates for consolidation when I last checked were really good. I got something recently for loan consolidation but I consolidated in 2003 and can't do it again.

Good luck!!

Re: Not sure if this is the right board: Student Loans

Thanks. I'm gonna have to call them and see what they can do. I think having them consolidate it for me, it the best bet. I'll check it out. Thanks!

Re: Not sure if this is the right board: Student Loans

Sallie Mae is very good. I have twice been on forbearance for a year because I could not pay them. I also consolidated with them years ago for 5.5%. The rates are better now I think. Good luck!

Re: Not sure if this is the right board: Student Loans

Re: Not sure if this is the right board: Student Loans

Just an FYI the only way to consolidate now is through the government. All banks had to stop doing student loan consolidations a year or two ago.

Here is the website for more infohttp://www.loanconsolidation.ed.gov/

Re: Not sure if this is the right board: Student Loans

I consolidated my grad school loans with Sallie Mae for 4.25% in 2003. After 48 consecutive payments, my interest rate dropped to 3.25%, and with auto debit, another ,25%. So my rate now is 3%.

Sallie Mae also had a deal where I could reduce my monthly payment for 3 years (interest only payments) which shaved off $150/month which helped me when I was briefly unemployed...now I'm only 4 months away from paying the entire balance off (could pay it all off now but then I'd have zero savings left).

Message edited 5/4/2012 4:09:57 PM.