Loan Consolidation

[reccakun08]

Ok well after recently graduating and checking up my school loans i find that consolidating loans is a ripoff.


example:

(STANDARD 10year stafford sub load)
outstanding balance1 $3250 outstanding balance2 $5500
Int Rate 6.8% Int Rate 6.8%
# of months 120months # of months 120months

Total owed = $8750
Monthly payments = $100.70
Total Paid = $ 12084.00 ($3334.00 is ALL INTEREST)

(CONSOLIDATION 20yrs... They round to the highest 1/8 of %)
Int Rate = 6.875
Monthly payments = $67.18
Total Paid = $16123.20 ($7373.20 is ALL INTEREST)


Obviously just from common knowledge it of course there is going to be more interest because you are paying less of the principal amount. But seeing the numbers calculated is scary. Just wanted to show you guys an example for those interested or are currently taking school loans. I guess the perks of consolidation is combining loans into 1 and extending the loan period BUT in the end you are paying a lot more with a small adjustment to monthly payments.

I currently have a decent steady job that are paying the bills but since my grace period is up i will have to readjust my spending habits.

I guess i screwed myself over in thinking that consolidating my loans would combine it all into 1 loan at a LOWER interest rate at an extended time.

[BustedS13]

well, obviously

[reccakun08]

Well i know for a fact that before consolidation at Sallie Mae's the consolidation did a reduction in rates but they no longer consolidate student loans.

Im looking for a company that is able to consolidate with a lower rate. I was wondering if anyone here who does this stuff for a living or has experience with student loan consolidation.

Thanks.