Hi I have about 3 student loans that add up to almost $10000.Do I pay the loan company or consolodat

The consolodation thing can be a scam....here is the best solution...to get out of debt....start paying your smallest loan down(only pay down min. payments on the other loans) until it is paid in full, then jump to the next smallest and bagan to pay it off...proceed until all are paid in full. Those debt consolodations are not always a good tool to use...most of the time it ends up costing you MORE out of pocket. For more information do a search for Dave Ramsey...he is a financial guru...this is where I got my info to get out of debt...it works!

Hi I have about 3 student loans that add up to almost $10000.Do I pay the loan company or consolodate?

do the math. if the consolidated terms are more acceptable to you then go for it but if they are not then dont.

Their are too many variables to give a simple yes or no answer here.

you should take the following things into consideration before you do.

1. Your aim; lower monthly payment or quicker payoff.

2. Your current monthly payment.

3. Your consolidated monthly payments.

4. Your current interest rate.

5. Your consolidated interest rate.

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I disagree with the guy above me, if you payoff the one with the lower balance first you will end up paying more in the long run because the interest on the higher gets compounded. do the exact opposite, try and payoff the highter balances first.

psychologically it might seem to make sense to pay the lower balance first (because you will have one remaining loan quicker) but mathematically it does not.

Hi I have about 3 student loans that add up to almost $10000.Do I pay the loan company or consolodate?

Student Loans have some of the lowest interest rates in the country. Never consolidate unless, you absolutely have to, it looks bad on your credit. With that amount of loans, I am thinking that you are only paying about $100 a month, that is good. Just make your payments on time and keep your credit decent.

Believe me, there are plenty of people out there who wish they were in your situation.

Hi I have about 3 student loans that add up to almost $10000.Do I pay the loan company or consolodate?

Federal Loan Consolidation is not a scam if you weigh your options carefully. There are pros and cons to it, just as there are pros and cons to NOT consolidating. People choose to consolidate for several reasons:

1) They can't afford their monthly UN-consolidated payments. Consolidating can lower your monthly payment by extending the repayment term. You would normally have 10 years to pay off your $10,000 loan balance. If you consolidate, many companies will give you 12 or 15 years (the more debt you have, the longer they will give you to pay it off -- up to 30 years). This longer repayment term means that you pay LESS monthly but MORE in the long run (because of accrued interest). Take a look at your monthly budget and see what payments you can afford. BUT...

Don't consolidate just because you want more time... Most Stafford and Perkins Loan lenders offer %26quot;extended repayment%26quot; too, without requiring you to consolidate to get it.

Also remember that, just because a consolidation company gives you 12 years doesn't mean you can't pay it off in 10 (or sooner. )

2. People consolidate because they want to lock in a low interest rate. Two years ago, many many people were consolidating because the interest rates had dropped below 3%. Stafford Loan interest rates change every July 1st; in 2003 they plummeted and they have gone up since. By consolidating, students were locking in this 3% rate and, when rates climed to 5.3 (which is where they are now) they were glad they consolidated when they did. Many students saved themselves thousands by doing so. BUT...

Beginning in July 2006, Stafford Loan interest rates will change from a variable rate (currently 5.3% and capped at 8.25%) to a fixed rate of 6.8%. If you're going to consolidate, you might want to do so before this change.

Finally...

There are some negative aspects of consolidation. Think of it this way: When you consolidate, your Stafford Loans and/or Perkins CEASE TO BE Stafford and Perkins Loans. This means that some of the benefits that these loan programs offer (such as some types of deferment and many types of loan forgiveness/cancellation) will be forfeited. These benefits are tied to those specific programs and don't apply to Consolidation Loans. For example, if you are considering entering the military or law enforcement, joining the Peace Corps (or something like it), teaching certain subjects such as special education, teaching in a designated low-income area, or if you are disabled... take a good hard look at the benefits that you COULD obtain under the Stafford or Perkins loan programs. If you think they could apply to you, you might not want to consolidate until you know if you are eligible. Hey, if the government wants to pay off your Perkins Loan because you are in the armed fornces, why lose that benefit?