10.26.09 | Consolidation Gives You 72 Months of Loan Deferment
That subject line was not a misprint. And no, I did not lose my mind. If you want 6 years of deferment on your federal loans listen closely.
Keep your loans unconsolidated and with your current lenders. You have 36 months of deferment time available to you with each of them. Go ahead and use all 36 months. Now, here is the kicker. When you consolidate your federal loans that benefit refreshes! You reset the dial and are handed another 36 months of deferment time. I kid you not.
Theoretically those who graduated in May ‘09, after their six month grace, may not have to make a payment on their federal student loans until November of 2015! Now tell me how awesome I am for telling you that. Don’t be shy. Post below.
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To answer your question: when your daughter returns to school, her loans will be eligible again for deferment. This means a few things…. you both can start paying some of them off now (probably a good idea, lowers the principal and interest), or you can do the consolidation and then defer the consolidated loan when she goes back to school.
Unless the monthly payments are too much to handle or the interest rates are extreme, I would not consolidate right away.
March 9th, 2010 | #
Hi Josh. There actually are two companies right now that are doing private loan consolidation, and they are Wells Fargo and Chase. You wouldn't be able to consolidate the Sallie Mae private loans through the federal program because they are a different type, with different interest rates and rules.
Here is the link to our page on private student loan consolidation: http://www.studentloanconsolidator.com/private/
March 9th, 2010 | #
Hey Kristin,
Just wanted to say that you’re awesome for sharing this! Thanks so much! Here’s one more question for you. I have some Sallie Mae Private loans that are extremely high. They offer no deferment options. I am unemployed and cannot pay anything to them for the next few months at minimum. Can I consolidate my private loans with a Federal Direct loan program so that I can qualify for some of the benefits that you so nicely mentioned in your article?
Thanks!
Josh
February 3rd, 2010 | #
My daughter is taken one year off from school and plans to go to grad school can i take this loan? and the borrow more money?
December 26th, 2009 | #
How do you apply or let your lenders know that you want to extend your grace for the 35 months? Was going to consolidate soon, so very interested in how you can extend payoff.
November 2nd, 2009 | #
Please tell me lore. I have 72016.00 in student loans. I graduated in May 09. What do I do next
October 27th, 2009 | #