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Old 06-15-2006, 10:51 AM   #6 (permalink)
keyshawn
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hey,

I'm going through the process right now and did some research on it and pretty much:
If you have a Stafford Loan: CONSOLIDATE THE LOAN !

(I'm presuming you have a Stafford, PLUS, or Perkins Loan; the most popular and ones offered by the government). If you have a loan you took out from a private company like citibank, then skip near the end, about the college fin aid office.

For Stafford, I'm almost positive that you do not lose the grace period for it. I do remember that for Perkins Loans (another type of govt loan), if you consolidated it, you'll lose the ability to write it off if you partcipate in a program like the Peace Corps or Americorps, or teach in a city school after you graduate.

To answer another question, they cannot 'limit' your payments. If you do win the lottery tomorrow or receive a huge windfall (though let's not kid ourselves, it's probably not going to happen); you're better off taking that money for a year and a half before you graduate, putting it in a short term investment like a CD (gaining interest) rather than paying before you leave college (because for Stafford, you don't have to pay the interest that accrues while you're in school if you make your first 12 payments, after you leave college).

I seriously recommend you to call the financial aid office at your college. They're still there in the summer (may have shorter hours) and will help you out and answer any questions you have. They'll give you good advice and are an underutilized resource !
(I'm not connected to my college's fin aid office, other than the fact they've helped me out w/ advice and not enough students know they can get free help and advice from them.)

For #1, I wouldn't trust any company that isn't well known. Go with a company that's owned by the government -
HTML Code:
<ahref="http://dlssonline.com">direct loans</a>
or Sallie Mae [used to be a govt entity, recently privitized].

catcha back on the flipside,
keyshawn
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