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06-05-2007, 06:42 PM
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#1 |
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Registered User
Join Date: Dec 2006
Posts: 15
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Student Loan Rates Going Up Again - Is Consolidation Worth It?
If you have taken out any Stafford loans or PLUS loans prior to this year and haven’t consolidated them yet, you may want to consider it.
The interest rates are rising slightly on July 1st, 2007. Here’s what the new rates will be: Stafford Loans (in grace) Will go from 6.54% up to 6.62% Stafford Loans (already in repayment) Will go from 7.14% up to 7.22% PLUS Loans Will go from 7.94 up to 8.02% Student loans consolidation can help you lock into your current low rates. However, consolidation is not for everyone. Make sure you cost out your options and weigh your choices carefully before consolidating your loans. Here are some comparisons of the best consolidation loan deals available right now: Federal Student Consolidation Loan Comparison Chart – this chart also has information on which lenders try to keep you from earning a discount. |
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06-06-2007, 06:41 PM
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#2 |
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Registered User
Join Date: Sep 2006
Posts: 9
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Interest rates correct?
Hi,
I'm most likely going to consolidate. But I'm wondering if anyone has any idea whether the rate changes stated in the original post are the most likely scenarios or if the original poster's guess is as good as anyone's? On the phone with US DofE loan consolidation department, the woman said they're likely to go up very little but wouldn't give me numbers. Sallie Mae said they're going up but also didn't say a lot or a little or give me specifics. Obviously they don't know but they have a good idea. Thanks, Shmuel |
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06-06-2007, 07:51 PM
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#3 |
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Registered User
Join Date: Dec 2006
Posts: 15
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These are what the actual rates will be. You can read more about it at Forbes: http://www.forbes.com/feeds/ap/2007.../ap3767640.html
Last edited by joshinky : 06-06-2007 at 07:53 PM. |
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06-06-2007, 10:42 PM
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#4 |
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Registered User
Join Date: Sep 2006
Posts: 9
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Rates & criteria for which lender to choose
Thanks for that article. I've been looking for something quasi-authoritative like that. Now as for which lender to choose, I've filled out my list with the following:
So far my list to call includes Dept. of Ed., Sallie Mae, Citi, JP Morgan Chase, HSBC, and Bank of America. Anyone have any other questions or lenders to consider? Thanks, I'll try to post my answers to the above questions for each lender as I get them. Shmuel |
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06-07-2007, 09:36 AM
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#5 |
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Registered User
Join Date: Dec 2006
Posts: 15
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There are some other posts in this forum that compare different consolidation companies: http://forums.kiplinger.com/showthread.php?t=8269 (i posted this one) and http://forums.kiplinger.com/showthread.php?t=6051
Also, I have already done a lot of research on this subject so I can help you out with your list of questions above: With respect to a Federal loan consolidation ONLY (I don't know anything about consolidating private loans) Reduction for direct deposit Interest reduction for on time payment? How long until I qualify for the reductions? Do they have a 'best rate guarantee' to get the best rate of the pre and post July 1st rate change? - this is really just fancy marketing...all it means is that if you called before the post-July rates were announced that company would wait to see if the rates were lower or higher and then give you the best of the two. Since we now know that the rates are going to be slightly higher the "best rate guarantee" will be to consolidate before July 1st. Do they guarantee the lower rate through the entire grace period (I'm not sure if this is possible) Application fee? - No one can charge you a fee for a federal loan consolidation. Deferment possible? - Every company must by law offer you the same deferment options with the same qualifications What qualifies me for deferment? Forbearance? Early payment penalty? By law, you cannot be charged for paying a Federal consolidation loan off early Do they sell the loans? Can I change payment plans? - By law, there are four repayment plans available to you on a federal consolidation: Standard, Graduated, Extended, and Income-Sensitive. Is there a penalty for changing payment plans? Nope. Companies are not allowed to charge for this. |
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06-08-2007, 06:54 AM
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#6 |
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Registered User
Join Date: Sep 2006
Location: Washington DC
Posts: 74
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Just a small note, when you consolidate the original loans still appear on your credit report, you have to write a letter to each credit bureau, Equifax, Experian and TransUnion to get the original loans removed and update the status to closed because it will appear as if you have the consolidated loan plus the original loans as outstanding. Thanks.
Harrine Freeman CEO, H.E. Freeman Enterprises www.hefreemanenterprises.com Speaker, Author of How to Get Out of Debt: Get an "A" Credit Rating for Free |
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06-25-2007, 05:28 PM
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#7 |
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Registered User
Join Date: Dec 2006
Posts: 15
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hfreeman -
Are you sure that is correct? I consolidated my loans and I did not have this problem. Is this a new thing? |
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