I am a recent BSN graduate who just recently found employment with a LTC/SNF. Much like every other recent graduates, this means that we all have to pay back our unwanted, and long awaited student loans. And for me, it is biting me back big time. I owe nearly 90k in loan repayment with three different companies including four private loans. I am really lost with loan repayment, but I did hear something about loan consolidation. From my understanding, loan consolidation is simply one company buying out your loans in order for you to pay that one single company with a fixed rate. Is this true? I am wondering if anyone else can share their experiences with loan repayments? Any horror stories? Any success? Also, I am planning to buy a house someday. How should I approach my situation?
Aug 1, '11
Dave Ramsey has good advice about how to pay off loans, loan consolidations (it is better to leave them seperated and see/feel the results of finishing off a loan sooner and knowing you will make even faster progress on the next one) and how to get into position to buy a house. Daveramsey.com You might want to start on this page http://www.daveramsey.com/new/baby-step-2/
He sells books but I've read them - there isn't anything in them that isn't on the website. It is nice to have the info laid out like it is in the books and it is even nicer to have the support and encouragement of the other people in the classes, though.
Aug 2, '11
consolidation of us dept of ed student loans will give you less flexibility with regard to paying back the loans. once consolidated, loans become subject to more strict/regular rules. Loans that are insured/written thru the dept of ed can have the payments reduced if you can't afford them. once consolidated, the loan companies will not be so flexible.
AM: i would maybe consider consolidating the private loans, but i'd never consolidate the other loans.
Aug 2, '11
Thank you for the replies. I am no reconsidering consolidation. Funds are just very tough at the moment and I need some short term relief. I really hope my loan companies will lower my payments.
Aug 2, '11
I like Dave's ideas and all but on this point I disagree. Are any of your loans federal? I was able to consolidate my husband's loans from grad school, most of which were private, because of one federal loan. My undergrad loans were consolidated though Citi, and they were actually not bad to work with.
Usually the total balance indicates the length of the loan, and if you lock in you can get pretty low interest rates. I'm not sure what they look like now but they were right around 4% when I consolidated. That's not bad. Plus you can write off the interest each year on your taxes.
Good luck, don't freak out about it and call them to work out your situation.
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