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Long story short is that undergrad and grad school left me with lots of student loans, which I've been re-paying for 11 years now with little impact on the Principal amount of the loans. Already consolidated back when interest rates were not that good - who knew?
So, I'm looking to see if anyone has worked with a financial adviser in town, specifically one with knowledge of student loans and alternatives to lower my 8% interest rate. There's got to be something out there that will allow me to refi with a lower interest rate, no?
Hopefully someone has a rec for you. Have you looked into loan forgiveness programs to see if you qualify? There is a Public Service Loan Forgiveness program that covers a few fields and it forgives your loans after 10 years of payments. That's what I will be doing!
My first recommendation would be to see if you can consolidate again. The Federal Education site states that the candidate must have 1 or more loans, so you may be able to do it and get the current lower rates even though you've already consolidated down to 1.
Check out sites like edu.gov and Sallie Mae for options for forgiveness, cancellation, etc. Most of them require education and/or work in particular fields and particular areas, i.e. teaching in inner city schools. There are also some organizations in local regions that have started programs where a certain amount will be paid towards student loans for a certain number of hours of volunteer service.
Unfortunately, because of the way they are structured, the only real way to make fast headway in paying off student loans is to pay a little extra every month. That extra amount goes directly against the principal balance of your loans, and lowers your monthly interest each time. Even an extra $25/month can make a big difference.
I would get the loan reconsolidated, and then keep making the same size payments at the least - what used to be going for that higher interest rate will go against principle, and you're still making the same payment.
If your loans are with a commercial lender right now (e.g., Sallie Mae, Bank of America, Wells Fargo, etc., etc., ), you could consolidate them again into the Federal Direct Loan Program. However, that isn't going to do anything with respect to reducing the interest rate.
The interest rate on Federal Consolidation Loans is set based on the interest rate of the loans you put into the consolidation. Specifically, they take a weighted average of the interest rates on the loans you consolidate, and round it up to the nearest 1/8th percent (with a max rate of 8.25%). So, even if you reconsolidate your current loan, the weighted average interest rate on a single 8% loan is going to be 8% for the new consolidation loan.
The only people who receive those ultra low interest rates on consolidation loans are people who have loans with really low interest rates. For example, when the interest rate on older variable-rate Stafford loans is really low, the weighted average turns out to be really low as well. But if you go to a consolidator with 8% Stafford loans, or an 8% Consolidation loan, you still end up with an 8% consolidation loan.
lacey3eb offers a good suggestion if you work in a local, state, or federal government job, or if you work for many of the non-profit organizations out there. The Public Service Loan Forgiveness will cancel the remainder of your loans after you make 10 years of qualifying payments while working in an eligible job. To qualify, your loans MUST be in the Direct Loan program. Unfortunately, I doubt that the payments you've made to date are going to count (payments have to be made under income-based repayment, income-contingent repayment, or a standard 10-year payment plan). But if you're in an eligible job, this might be a way for you to at least see a light at the end of the tunnel.
I also heartily second ellemaew's tip on trying to pay even a little extra whenever you can. Every little bit will help knock down that loan faster.
Although I offer student loan repayment consultations, including via phone, I can't in good conscience recommend that you hire me or anyone else for that service. I don't think you're going to find any options to reduce the interest rate, which appears to be your primary goal. PUT THE MONEY TOWARD YOUR STUDENT LOANS INSTEAD! But you're welcome to review the free resource sheets on my website, which may help you evaluate some of the available options. ERIS Enterprises, Student Loan Repayment Through Informed Strategies
If your loans are federal rather than through the bank, they will lower your interest rate after a certain period of consistent payments, as well as for setting up auto-pay. You might have already known that. Student loans are kind of depressing!
If your loans are federal rather than through the bank, they will lower your interest rate after a certain period of consistent payments, as well as for setting up auto-pay. You might have already known that. Student loans are kind of depressing!
Tell me about it...I still have about 10 years left to pay on mine. Luckily I got in and did the whole consolidation thing several years ago when rates were still really low, so mine are at like 4%.
As someone else mentioned, every little extra bit helps. If you are on a 30-year payment plan, making the equivalent of one extra payment per year can take several years off of the life of the loan (just like a mortgage).
Also, not sure who your loans are held by, but Sallie Mae wound up with mine and I pay them on-line. I did not sign up for auto pay and, instead, pay half of my monthly payment (plus a bit extra) every two weeks when I get paid. Even if you can't kick in a little extra, paying half every two weeks (instead of one payment a month) will have an impact on the accrued interest and also help you get them paid off faster
Consolidate again. When you consolidate, your interest rate will be fixed for the life of the loan at the current rate.
Did mine a few years ago...rate was 3.14%. On the 20 year plan w/ graduated payments. Uncle Scam will get his money nice and slow.
On a side note, student loan interest deduction is scheduled to expire 1/1/2011 and loans are forgiven if you die.
When its time for my child to go to college, I am going to have her get a credit card and charge her entire tuition on it each year, pay the minimum, then declare bankruptcy once she graduates. Free college education. BOOM. I work in education and trust me...I've seen worse.
When its time for my child to go to college, I am going to have her get a credit card and charge her entire tuition on it each year, pay the minimum, then declare bankruptcy once she graduates. Free college education. BOOM. I work in education and trust me...I've seen worse.
Hmm. I'm guessing that in these new financial times, the card issuers won't give your daughter enough unsecured credit to pay for a college education unless you co-sign it. (and even then, they might not) So if this approach is taken they will then come after you to pay it. Her bankruptcy won't remove your obligation to pay.
When its time for my child to go to college, I am going to have her get a credit card and charge her entire tuition on it each year, pay the minimum, then declare bankruptcy once she graduates. Free college education. BOOM. I work in education and trust me...I've seen worse.
Surely you are kidding, but if not...there are easier ways that do not involve ruining your daughter's financial future with bankruptcy (not that I think she can get enough credit on a card to cover 4 years without a co-signer with a good credit history, and even then you woudl be ruining 2 people's credit scores...). Earning academic scholarships is one, attending community college for the first 2 years is another, and then going to a local state school. College doesn't have to cost a lot.
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But you're welcome to review the free resource sheets on my website, which may help you evaluate some of the available options. 
