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Student Loan Consolidation Tips
student loan consolidation information
How does student loan consolidation affect the federal student loan interest tax deduction?
Ok, some details 1 I have a federal Stafford loan and several Wells Fargo loans which I'm looking to consolidate all into one Wells Fargo loan. 2 Before you begin, I couldn't care less about all these " benefits" that come with the federal loan. The only benefit I care about is the Federal Student Loan Interest Deduction.3 I know for a fact that all interest accrued and paid on the consolidated loan WILL BE deductible according to the FSLI deduction, AFTER consolidation takes place.4 What I don't know, is this Currently, my unconsolidated student loans have accrued about $7000 of interest thus far. I know that if I don't consolidate, all of this $7000 will be tax deductible when I pay it up to $2500 a year . However, the big question in my mind is, will this $7000 STILL be tax deductible AFTER I consolidate? Or, will only NEW interest acquired AFTER the point of consolidation be considered tax deductible?Chapter 4 of Form 970 doesn't have this example anywhere. I tried calling the IRS directly to get a straight answer on this. The representative I talked to didn't know and said they'd do some research and get back to me. After three weeks, an extremely formal gentleman from the IRS called me and gave me an extremely vague and confusing answer. He said that it all comes down to the verbiage of the specific consolidation contract. If the contract states that the consolidation " combines the original principle and the original interest" , then, that $7000 will not be tax deductible. If the contract states that it " keeps separate the original principle and the original interest" , then, that $7000 all still falls under the deduction.Unfortunately, that answer doesn't seem to jive with common sense based on what form 970 says, nor did I think to ask the representative, " what if the contract doesn't specify either of the conditions you gave?" Does the categorization of the interest default to one condition or the other? I don't know. The IRS rep referenced U.S. Code 26 section 126 in response to how his answer was formed.I looked through that code and despite the fact that it's written like trash I couldn't formulate any language which would stipulate that my $7000 would no longer be tax deductible after consolidation, but then again I'm not a lawyer.What I'm looking for here is somebody with real world experience with this, and KNOWS whether or not this interest is still tax deductible after consolidation. You would think this would be a fairly common answer, but yet I cannot seem to find anyone who actually knows.EDIT tro, your information is incorrect. If the consolidation is only for qualified student loans, what you are saying does not apply. This stuff is all in form 970. This is what my consolidation contract states " By placing an X here and signing below, I am certifying to the Internal Revenue Service that all of the proceeds of this Credit agreement will be used solely to pay offprior debt incurred solely for the payment or refinancing of qualified higher education expenses" Bobbie I still WOULD be reciving form 1098 E from Wells Fargo after the consolidation. My questions do not surround this. My questions surround the $7000 of student loan interest that I've already accrued....
Are there any lenders that do federal student loan consolidation? not private loans?
it seems like there aren't any lenders that do federal student loan consolidation programs. Are there any out there? not private loans.so far it seems like the dept of ed has ended other programs. please helpthanks Ruth. Can you ask your relative if it was a federal loan? New question, is it possible to debt consolidate federal student loans?? so there's debt and then student loan consolidation.
About student loan consolidation?
I have 2 student loans. One of them is through American Educations Services, and the other one is through Sallie Mae. I'm having a hard time keeping up with both of them along with my other bills rent, car, insurance, etc. What is the best way to go about consolidating them together, or is that even possible? Thanks in advance.
Which student loan consolidation plan would be better?
I'm applying without a co signer and wish to lower my monthly payments I'm paying about 5 banks right now, every month. FIXED Interest rate 13.45 % 14.10 % APR 5.00 % Loan Fee$398.73 Monthly PaymentORVARIABLE Interest Rate 11.06 % 3.06 % Index 3 Months LIBOR8.00 % Margin11.64 % APR5.00 % Loan Fee$330.49 Monthly PaymentI realize these rates are a bit ridiculous, but I am backed into a corner. I don't really want to ask anyone to cosign for me, and I dont want to keep paying $600 month over various banks.What would you do? Or should I try another bank?Thanks.
Is student loan consolidation a scam and should one do it soon before rates go up?
I am hearing that rates are going up considerably on student loans and that everyone should consolidate to lock in a lower rate. I am not sure though, because I get to deduct the interest on that loan every tax year and my rate is currently under 5 %.
What's the difference between student loan consolidation companies?
The guy on the phone is telling me that they all offer the same deal and the same services, but I don't believe him. Does it matter if I go with Academic Financial Services AFS or Sallie Mae or any other company, or are they really all the same?
Why can't I get a student loan consolidation with a credit score of over 720?
I am paying 300 on one student loan and 200 on another. To be honest, I'd really like to consolidate the two and be able to get a lower monthly payment. I'm 22 years old and I have just joined the navy. I leave in July for boot camp. I have talked to a few different lenders and most of them say they are no longer doing student loan consolidation. The one that I did talk to that is still participating in student loan consolidation is Wells Fargo and they wanted me to have a co signer. Being in the Navy I have great job security...I think my credit score is decent...But right now I'm not making much money, only about 800 dollars a month and I think that is why they are asking for a co signer. Do you think if I wait until after boot camp, when I'm making more, I could get a consolidation without a co signer?What are my options? Having a co signer is NOT an option.. Thanks you.
Can someone give me advice about private student loan consolidation?
I currently have Sallie Mae loans. As many of you know they will take you to the bank on interest and other fees. Does anyone have any advice on who might be willing to consolidate these god awful private loans. I don't want to be in debt forever Any great advice is greatly appreciated
Wheres the best place to do student loan consolidation?
lame answers. give me a real place.
Student loan consolidation and taxes?
If I consolidate my student loans with a private bank can I still write of the interest as a tax deduction?I am already graduated and scheduled to begin payment on the loan in April. I am currently trying to get it deferred for a few more months. If I consolidate these loans with a private loan can I still write of that interest on my taxes?
Student loan consolidation?
I have a ton of student loans. I'm still in the grace period, but I have some high interest rates and would like to consolidate. Great lakes offers to take .25 % of every loan's individual interest rate and an additional .25 % off when I sign up to auto debit. Is this a good deal or is there a better solution? I couldn't find any consolidation service from Sallie Mae on their website. Here is my loan information.sallie mae $6,000 at 7.875 %$1,000 at 9.125 %$3,500 at 6.8 % stafford subsidized $16,000 at 2.375 %$10,000 at 6.875 %Great Lakes $8,000 at ? % stafford unsubsidized $7,000 at ? % stafford unsubsidized $8,000 at ? % stafford unsubsidized University accounting service$7,000 at ? % federal perkins Thanks,A very poor recent graduate
Chapter 13 Bankruptcy - Student Loan Consolidation?
My lawyer told me that another attorney told him that if I was in default before I filed bankruptcy that they may consider student loan consolidation. He also said, that if I wasn't in default when I filed they will not consider loan consolidation. Please let me know if this is accurate and where can I get more information on student loan consolidation.I don't want to add my student loans to my bankruptcy. That would increase my payments. I want to see if I can consolidate them and make low monthly payments.
Student loan consolidation??
how does it work?? how do they get you lower rates?? and whose the best as far consolidating your loans??
Student loan consolidation question?
I have about 17k in SL from undergrad that were consolidated at 2.8 %. I come this may I will have an additional 31k in SL, due to grad school. I am going to need a 30 year repayment period, as I cant afford alot of extra money right now. DO I have to consolidate my Grad loan with my undergrad, if I do this i will loose my awesome rate?Can I keep the loans separate but still at least stretch the 31k into repayment over 30 years?What are current federal interest rates? Do you think they will go down because it appears the economy is headed south?I never consolidated my grad loans. I consolidated my under grad right after I was done with school, and two year before I went to grad school.
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