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Consolidation Nightmare

Started by vetpoo, January 15, 2016, 11:51:18 am

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vetpoo

Ok, so I had loans with Navient and Great Lakes.  I called Fed Loan to consolidate them to get a better payment or just to have everything in one place.  Great Lakes payment with income based repayment was $10.00.  Navient payment with income based repayment was $65.  When I consolidated with Fed Loan the amount went from $75 to $760!!!!!!!!!!!!!!!!!!!!

Now exactly how does that benefit me?  I had no problem paying the $75 per month but what makes them think I am capable of 10 times that amount!?  I was told things would get better.  Getting worse is an UNDERSTATEMENT.  I asked several times to get some kind of guesstimate as to what the payments would be but was told that they could not do that until all the paperwork was processed.  That should have been my first warning! 

I asked if they could reverse the whole thing but of course they can't.  (or wont?).  It was a nightmare to see what amount as it is actually about 40% of my current take home pay.  Needless to say I am asking for them to now complete an Income Based Request to which they sent me to Student loans.gov.  Hindsight is 20/20. 

TheCollegeInvestor

Your consolidation loan is a brand new loan (not a combination of the old ones) - you have to reapply for Income Based Repayment on your new loan since the old loans are gone. Once you do, your payment will be lowered back to closer to what you were paying.