Unlike
grant aid, student loans need to be repaid. On average, the 2008 graduating seniors
at Barnard borrowed $16,631 in student loans ($11,977 of which was in Stafford
Loans). Below we have listed information that we hope you will find useful as
you try to estimate your monthly payments and formulate a budget for living your
life outside of Barnard!
LOAN REPAYMENT CHART
Click on the
Loan Repayment Chart to estimate your monthly
loan payment. The chart notes the minimum payment, the number of payments, and
the amount of interest to be paid over the life of the loan. This assumes a standard
10-year repayment period with 120 equal payments of interest and principal. LOAN
CONSOLIDATION
Loan Consolidation allows any borrower of federal loans (Stafford,
Perkins, PLUS) to refinance those loans into one single loan with one monthly
payment. Each loan included in the consolidation is sold to the consolidating
lender by the original lender and a single loan is created. The new consolidation
loan has a fixed interest rate and may have an extended repayment period up to
30 years, depending on the size of the new loan. Consolidation loans cannot be
made until the borrower is in repayment. Advantages of Consolidation
- Ease of payment with one lender and one monthly check to write.
- Possibility of a lower fixed interest rate.
- Allows for
an extended repayment period, depending on the size of the loan, creating a lower
monthly payment.
- There are no fees charged and there are no
prepayment penalties if you are able to repay your consolidation loan early.
Disadvantages
of Consolidation - Longer repayment period increases interest paid
on your student loan debt, and therefore increases the total amount repaid on
that debt.
- It is possible to lose incentives provided by your
original lender when the loan is consolidated into a new loan.
-
If Federal Perkins loans are included in the consolidation loan, you will lose
the interest subsidy and cancellation benefits.
Please note that some
lenders may no longer offer consolidation loans. If you have a particular lender
you are interested in consolidating with, check with them to see if they offer
consolidation loans. If not, check with financial aid for a list of possible lenders
who offer consolidation loans.
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