Can you consolidate your loans while you're still in school? I would like to consolidate my private loans that my family members have signed on. I understand that I consolidate, they will no longer be on the loan, is that correct?
Also, can I consolidate those loans while I'm still in school?
In addition, consolidation is affected by your credit at all? I have bad credit so I wonder how this will factor into it.
Basically I'm just trying to understand the process of consolidating student loans to provide advice or pointers would be great.
Thank you!
You can consolidate your loans once, so I do not recommend doing while you're still in school. Because if you still have to borrow, your most recent loan were not included in the consolidation, somewhat defeating the purpose of consolidation in the first place.
In short, consolidation is where your old loans are repaid and your loans are consolidated into one loan and one payment. If you have federal and private loans, you can not combine the two together. Also, any consolidation of private loans (new) require you to have a co-signer. So, yes, in theory, your former co-signers are "stalled", but you will be asked to get another co-sign or re-present your co-signer for you co-sign. If you do not have excellent credit and a solid history of employment, you will not be able to consolidate without a co-signer.
Persoanlly, more consolidation is just HYPE and does not really help you much. When you consolidate, you take a few loans that are in perfect condition scheuduled be repaid in 10 years and combine it with a slightly lower payment and pay if amortized over a period of 30 years. Ensure that your payments could be a few dollars less, but now that you are paying on them until you retire!
Posted on March 2, 2010.
