To all of you that are unsure whether you qualify for consolidation or not; The process is pretty simple. First, go to you school's financial office - Those folks are required to know the most up to date information on lending THAT IS THEIR JOB! MAKE THEM WORK FOR YOU! I know it seems like a run around, but you all are going to have to demand what you want. I have student loans that I'm still paying after 10 years at 8.25%; so if you want to be upset, be upset for me. I got screwed big time. Worst yet, I cannot consolidate. Meanwhile, contact your financial aid office, they have all the information on your loan: who your lender is, what your current rate is, the term and dates of each of your loans (chances are your have more that one for each year). I hope that my misfortune helps some of you out! Maybe some of you will become politicians that work for the people and keep this type of thing from happening to other students. Good luck!

I am getting an unsubsidized stafford loan in Fall 09 ad SPG 10, do you know if these rate will be 2.77%, or will I need to do something to make then variable? I think stafford loans start out as fixed, so I'm not sure if my reate will still be the ridiculou 7.8% or 2.77%
Chris

I think it sucks that I cannot receive the lower interest rate because I consolidated my loans several years ago with a 4.7% rate. If I had known the money that I had borrowed would double from 80k to 160k I would have never went to school and borrowed money. I still have a low paying job to this day.
LedaBee in Texas

@jackflack1234 Did someone pee in your Cheerios this morning? Your insensitivity and apparent lack of knowledge on education loans is surprising. I will take a moment to point out that those who live in glass houses shouldn't throw stones. You pointed out another user's horrible grammar and spelling. While I acknowledge that you were correct in your assessment, I also count 2 grammar mistakes and mispelled words in your reply below. Everyone makes mistakes or types when in a hurry. Leave it alone. We should help each other out, not stomp on them when they are down or need help.

That said, I suggest that everyone (including jackflack1234) read a recently published book called "The Student Loan Scam: The Most Oppressive Debt in U.S. History - and How We Can Fight Back." The book recounts many borrowers who were charged outrageous rates and fees after missing a single payment and others who were lied to outright. Education loans provide consumers with less protection than any other loans. You cannot refinance your loan, you cannot dispose of your loan in bankruptcy, and you cannot necessarily negotiate a lower payoff like you can with other loans. Its outrageous, and if we are going to do anything about it, it needs to happen under Obama. Write to your state representatives and to our President!

I only took out my loan in January 2009, so this does not apply to me. I do have a few questions, however, if anyone would like to answer it.

- Does the Federal Government typically offer an alternative consolidated loan rate every July? If so, this would benefit myself in July 2011... though I am not counting on getting an interest rate as low as 2%. =)
- Also, if I went directly to Graduate school before my repayment period begins six months after I graduate, will I be able to continue to defer my repayment, or would the deferral only apply to my Unsub Undergraduate Federal Student loans? Either way, will I be able to consolidate both Undergraduate and Graduate [Federal] loans?

Thank you so much for your time... it would probably make more sense to field these inquiries to my financial aid office at my school, but they aren't very good at getting back to me. And they're rude. =(

@LindaG314 - That is a well structured case and one that deserves a second look. IF you are structured financially in a sound fashion, you've made a reasonable argument for letter to your congress person as 'rayers' says. The letter should specifically highlight the nature of the jobless rate in your congress person's district and how that has impacted your ability to find employment necessary to fulfill your obligation to repay your loan. Specifically as your congress person to sponsor a bill authorizing a 2 year deferment. See where it goes.

My first statement said IF you structured in financially sound way. If you rent the penthouse in the downtown luxury suites and and you drive a BMW 5 series or a Hummer, you're not really structured properly. In fact, if you have a car payment at all and you're complaining you're probably not structured properly. You know that $5000 tatoo you just have to have? That probably isn't a good idea either.

My point is if you're going to make a case, make sure the case you build isn't made out of quicksand.

I consolidated in 2007 and now have a 5.85% rate. Constructively, loans do help the country. Realistically, however, loans kill those of us who, because we can't pay the loan payment, continue in seeking more and more education and even choose a second major with loans attached - in order to keep from being in default! With the jobless rate as it is, we are caught in the middle; can't find a job without a degree, and can't pay for the degree without a job. My student loans exceed $30K and I am still in school dodging the bullet! Where is the solution, Mr. Kantrowitz? Thanks for the article, but what can be done to stop the bank robbery of innocent students who are making an effort but are still being accosted by the poorly designed loan structures of traditional education loans? And grad school? Forget help with that!