I would lock in at current rate and something big is happening on July 1st. I think it's more than just a normal rate increase. My impression is that there's supposed to be a significant jump. Wouldn't I be a fool not to consolidate and lock in at current moderately high rate?
2006-06-19 06:34:24 · 6 answers · asked by icu812 3 in Business & Finance ➔ Personal Finance
Consolidation of your student loans does not count against your credit score AT ALL!!! Do not believe the person who posted earlier saying that. It is no where near as detrimental as a bankruptcy. In fact it is not detrimental at all.
By consolidating your loans you are reducing all of your loan payments to one payment. This is by the best way to go and it is was I did with my school loans totalling $130,000.
There really is no downside to consolidation. I would recommend doing it with the federal government rather than a private lender because interest and fees will be lower with the former.
2006-06-19 07:23:06 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I was in the consolidation business for a few years. It's extremely important that you get your loan consolidated ASAP. After July 1, the rate structure will become very unfavorable and could cost you many hundreds, if not thousands of dollars in interest. You've got to act quickly. I would encourage you to use the Department of Education's plan, way less fees.
2006-06-19 06:43:20 · answer #2 · answered by Padrefan 3 · 0⤊ 0⤋
The only downside is that you can only consolidate once. After you have done this, even if better offers come later, you can not "re-finance".
Of course if you wait they could go up. Since we don't really know what the future holds, I would suggest you consolidate now.
2006-06-19 08:48:56 · answer #3 · answered by www.promoneytalk.com 2 · 0⤊ 0⤋
I believe the new rate hike is for new loans. You should consolidate loans IF the rate is low enough to make your total payments from all debt lower than you are currently paying.
2006-06-19 06:43:28 · answer #4 · answered by extra_37 4 · 0⤊ 0⤋
Consolidating sometimes is just as bad as Bankruptcy because it shows lenders you weren't able to pay your bills. This will show on your credit report. Your choice.
2006-06-19 07:03:39 · answer #5 · answered by jessigirl00781 5 · 0⤊ 0⤋
Consolidate, I did, and it is showing to be a good decision.
2006-06-19 06:38:21 · answer #6 · answered by allknowing 4 · 0⤊ 0⤋