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Jeri Lynn
02-12-2013, 06:55 AM
Hi Everyone,
My daughter just finished school in December. We did her exit counseling.

My question is, we plan on consolidating her loans. Do we do that now or do we wait until we hear from her lenders?

The whole process is a little confusing to me!

Thanks so much!
VWL Mom
02-12-2013, 07:15 AM
Congratulations to your daughter and best of luck as she starts another chapter in her life.

IMO federal and wait aren't something that go hand in hand. If you're ready to consolidate now and have a good rate, I would go ahead. You should be able to find the payoff amounts either by calling or online.
Pirate Granny
02-12-2013, 07:26 AM
Do NOT wait run to your nearest lender that has the lowest rates.
Jeri Lynn
02-12-2013, 07:46 AM
Thanks for your replies.

After exit counseling is completed they send you to a site for Direct Consolidation Loans. Should I be looking for a private lender to consolidate with or should I be going thru this other lender (Direct Consolidation loans)

The loans she has are all federal stafford loans(no private) and some are subsidized and some are unsubsidized.

I wish I had more confidence in the process.
VWL Mom
02-12-2013, 08:46 AM
Thanks for your replies.

After exit counseling is completed they send you to a site for Direct Consolidation Loans. Should I be looking for a private lender to consolidate with or should I be going thru this other lender (Direct Consolidation loans)


I would suggest you shop around. I know for DS, they offered unsubsidized for 6.75%. I was able to get it for 3.00% through Discover with same repayment terms and no prepayment penalty. Not sure how it works with subsidized.
Dulcee
02-12-2013, 09:11 AM
The only thing I would caution is to watch for deferment options. As someone with a fair amount of student loan (mostly federal) the ability to defer payments while I'm in graduate school was huge and often not available if you consolidate into a private loan. For that reason (and with the knowledge that I had 5 years of graduate study ahead of me) I went with a federal consolidation. If you and not your daughter are paying back the loans this might not be a factor.