How can I get out of my consoldiation for my student loan?
It is not as bad as it seems. In the long run, you will have saved money by locking in a lower interest rate.
Let’s flash forward to May 2008. You graduate, and cannot afford these loan payments. You do have a few options.
1. Change your repayment plan. There numerous plans out there, even based on your income. Call your student loan servicer 60 days before you grad for payment plan quotes.
2. Deferment – There are other types of deferment beside an In School deferment. There are Unemployment deferments and Economic Hardship deferments. Call your student loan loan company 60 days before you grad and they will ask you questions over the phone to see if you qualify for one of these deferments (no interest accrues on your subsidized balance during any period of deferment)
3. Forbearance. This is a postponement of your payments. Interest accures regardless of the type of loan you have. These can often be approved within minutes over the phone. Call your student loan company 60 days before you graduate for this option too.
I am sorry about your consolidation. It is one of those things that is explained in the fine print.
I worked for Direct Loans for 7 years. If you need additional help (especially if your loans are through them) let me know!
Consolidation of federal loans is much more regulated. In general, these can not be consolidated until the student is within 30 days of graduation. The terms, interest rates and rights to deferment are all the same, no matter the lender and are garunteed by law.
I would suggest contacting whomever you have consolidated these loans with. As you are still in college, there could indeed have been an error. You should also set up a talk with the financial aide office of your college..they should be able to help make some sense of all this. Finally, if what you were told is true, you should start investigating more reputable lenders, with better terms to consolidate your loans again (as I am assuming there will be additional loans for your senoior year) closer to graduation.
You should NEVER consolidate before you are done. Those are threats so they can get your money sooner.
Alternatively just phone one of those debt consolidation adverts you see on TV
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