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Federal Student Loan Changes in 2014?

Discuss strategies for dealing with Student Loans

Federal Student Loan Changes in 2014?

Postby giynn91 » Thu Aug 11, 2011 6:02 am

I recently got my undergraduate degree with a (small by comparison) amount of federal student loans. I am planning to attend law school in the next few years. I have so far been unable to get a decent answer to my question. The new changes to the IBR repayment plan are to cap annual loan payments at 15% of income, but this will drop to only 10% under the new law. Since I am considering going the public service forgiveness route, and consolidating my current loans with my future ones, will they necessarily have to be treated as separate? Will I lose that 10% cap on the newer loans by consolidating them with the older loans taken out before 2014? I need to know this to figure out the best course for me financially. Thanks in advance!
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Federal Student Loan Changes in 2014?

Postby destin » Thu Aug 11, 2011 6:03 am

you can only consolidate your loans ONCE in your lifetime. If you get loans after you consolidate, (and most of the time consolidated loans don't fall into the regular federal payment guidelines) you should wait until you are COMPLETELY finished with school to do ANY consolidation, and even then... like I said, consolidation isn't always (usually never actually) a good thing to borrowers, it never really every saves them money in the long run... longer payment terms always end up making the students pay more money in the long run over slightly lower (if at all) interest rates.
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