Forgot to defer student loans…begin repaying or not?
I am in graduate school outside of the US and put off deferring my student loans until right before the grace period expires. The paperwork is now on the way, but the due dates for my first payment will happen before the loans are processed. Should I make the first payment?
I have the resources to do this, but I understand that there can be consequences later for consolidation (or something else, don’t remember exactly) if the loans go into repayment. Anyone know about this?
Hannahhhhhh:
If you’re talking a month or so, you’ll get hit with a fairly minimal late charge, and that’s about it. I wouldn’t sweat it.
On the other hand, I am not aware of any negative consequences of making your first one or two scheduled payments – other than if you hope to convince your lender that you need an economic hardship deferment. If that’s the case, you’d have a little explaining to do.
There are no consequences for consolidation – and don’t be too eager to consolidate, any way. Consolidation is sometimes envisioned as a ‘magic potion’ for student loan borrowers, but choosing to consolidate is a very expensive financial option that isn’t really advisable for most people. If you’re worried about the eventual monthly payment obligation, and how you’ll be able to manage it, there are far better options, including the new Income Based Repayment option. When the time comes to think about how to repay your loans, do your homework.
Good luck!
