Consolidating private student loans in default

I have 2 categories of Stafford Loans, subsidized and unsubsidized.Under each category, I took 2 individual loans during school, for a total of 4 loans. When the loans were serviced directly by the Department of Education, they were arranged into “groups,” and payments were calculated and applied to each group.You could pay extra on any group you wanted, right online, point and click.I could also rearrange the loans into groups in whatever fashion I desired.So – if you have any choice in the matter, avoid Great Lakes as a loan servicer! I will be stuck with them for a while since they have both my Stafford and my Discover loans. by Adam I mentioned several months ago that my Stafford Loans were transferred to Great Lakes for servicing.

Both options may help reduce monthly payments through interest reductions (Private) or by utilizing Federal Income Based Repayment plans (Federal).Since my subsidized loans had smaller balances, I wanted to attack those first.Every time I tried to do this, the rep would argue with me – “Most people want to pay down their unsubsidized balance first.” I understand why they say this, but I have to tell them 4 times that I am paying off the smallest balance first. subsidized decision doesn’t make a difference for me anymore – only if I lose my job and qualify for a deferral).” 2 reasons: because it’s more motivating to attack a 00 balance than a big hairy k balance.And because each loan I eliminate lowers the monthly payment required in case we get in a situation where we are only able to make minimum payments (but only if I call in and ask them to recalculate the payment).

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