Comments on: Student Loan Consolidation http://www.optimizedliving.com/2005/05/15/student-loan-consolidation/ for those who strive to maximize (value/cost) Thu, 04 Dec 2008 20:40:13 +0000 http://wordpress.org/?v=2.5.1 By: OL http://www.optimizedliving.com/2005/05/15/student-loan-consolidation/#comment-162 OL Tue, 26 Jul 2005 05:43:32 +0000 http://www.optimizedliving.com/?p=40#comment-162 HomefrontSix, I think this depends on how disciplined you can be with a substantial amount of money (in other words, you have to trust yourself not to blow it :)). Not always an easy task. A rate like 2.125% is historically difficult to obtain and is substantially better than any mortgage that you will be able to get. Here is a perfect example: Assume that you have enough money for school but you can get low interest loans. You take out the max in loans and put that same amount of money into an ING account immediately (you could argue the market, but we'll take the conservative approach). When you get out of school, you consolidate at a fixed rate and decide to buy a house. Now you are in a position where you have a very low interest loan, and using the money in the ING account can take out a smaller higher-rate mortgage. Also, your federal loan may have been a deferred loan, so you were not charged interest during school but were making money in the ING account. --OL HomefrontSix,

I think this depends on how disciplined you can be with a substantial amount of money (in other words, you have to trust yourself not to blow it :)). Not always an easy task. A rate like 2.125% is historically difficult to obtain and is substantially better than any mortgage that you will be able to get. Here is a perfect example:

Assume that you have enough money for school but you can get low interest loans. You take out the max in loans and put that same amount of money into an ING account immediately (you could argue the market, but we’ll take the conservative approach). When you get out of school, you consolidate at a fixed rate and decide to buy a house. Now you are in a position where you have a very low interest loan, and using the money in the ING account can take out a smaller higher-rate mortgage. Also, your federal loan may have been a deferred loan, so you were not charged interest during school but were making money in the ING account.

–OL

]]> By: Financial Rounds http://www.optimizedliving.com/2005/05/15/student-loan-consolidation/#comment-161 Financial Rounds Tue, 26 Jul 2005 00:08:51 +0000 http://www.optimizedliving.com/?p=40#comment-161 <strong>This Week's Carnival Of Personal Finance</strong> This week's Carnival Of Personal Finance is up at Free Money Finance. There are some nice posts there. But, if you're pressed for time, here are my favorites: This Week’s Carnival Of Personal Finance

This week’s Carnival Of Personal Finance is up at Free Money Finance. There are some nice posts there. But, if you’re pressed for time, here are my favorites:

]]> By: nathan bissonette http://www.optimizedliving.com/2005/05/15/student-loan-consolidation/#comment-159 nathan bissonette Mon, 25 Jul 2005 19:19:20 +0000 http://www.optimizedliving.com/?p=40#comment-159 I think this only applies to federally insured student loans. My kids didn't qualify, so they took loans through our bank, which my wife co-signed. Now, we get constant offers of consolidation but when we call, we never qualify. Does anybody know of a consolidation program for people who did NOT get federally insured student loans? I think this only applies to federally insured student loans. My kids didn’t qualify, so they took loans through our bank, which my wife co-signed. Now, we get constant offers of consolidation but when we call, we never qualify.

Does anybody know of a consolidation program for people who did NOT get federally insured student loans?

]]> By: HomefrontSix http://www.optimizedliving.com/2005/05/15/student-loan-consolidation/#comment-158 HomefrontSix Mon, 25 Jul 2005 19:08:18 +0000 http://www.optimizedliving.com/?p=40#comment-158 While consolidating loans is a wonderful idea, especially given the current, historically low, interest rates, I am not sure I am comfortable with the idea of essentially taking out a loan in order to invest (i.e."even if you have money for college, take as many low interest government loans as possible. Take the cash that you do have for school and put it into the market or an ING account."). Rather than do what most "normal" Americans do, if you have the money to pay for school with cash, DON"T take out loans. Just my opinion - debt is evil. While consolidating loans is a wonderful idea, especially given the current, historically low, interest rates, I am not sure I am comfortable with the idea of essentially taking out a loan in order to invest (i.e.”even if you have money for college, take as many low interest government loans as possible. Take the cash that you do have for school and put it into the market or an ING account.”).

Rather than do what most “normal” Americans do, if you have the money to pay for school with cash, DON”T take out loans. Just my opinion - debt is evil.

]]> By: Free Money Finance http://www.optimizedliving.com/2005/05/15/student-loan-consolidation/#comment-155 Free Money Finance Mon, 25 Jul 2005 08:15:27 +0000 http://www.optimizedliving.com/?p=40#comment-155 <strong>Carnival of Personal Finance #6</strong> Welcome to the 6th edition of the Carnival of Personal Finance and to Free Money Finance. For those of you who are new to the carnival, it's a sampling of some of the best articles from top personal finance bloggers Carnival of Personal Finance #6

Welcome to the 6th edition of the Carnival of Personal Finance and to Free Money Finance. For those of you who are new to the carnival, it’s a sampling of some of the best articles from top personal finance bloggers

]]> By: site admin http://www.optimizedliving.com/2005/05/15/student-loan-consolidation/#comment-144 site admin Sun, 15 May 2005 23:55:24 +0000 http://www.optimizedliving.com/?p=40#comment-144 That's interesting. I think the 36-months on-time payment should apply even with less than 20k. http://www.aesloans.com/consolidation_loans/aes_discounts.htm That’s interesting. I think the 36-months on-time payment should apply even with less than 20k.

http://www.aesloans.com/consolidation_loans/aes_discounts.htm

]]> By: Yu Deng http://www.optimizedliving.com/2005/05/15/student-loan-consolidation/#comment-143 Yu Deng Sun, 15 May 2005 23:07:46 +0000 http://www.optimizedliving.com/?p=40#comment-143 the 36-months thing only apply if you have more than 20k in loans, and when I consolidated, I only had 18k left. man why did I not take finance in college :( the 36-months thing only apply if you have more than 20k in loans, and when I consolidated, I only had 18k left. man why did I not take finance in college :(

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