I only owe $16,000 in college loans, would it be a good idea to consolidate them, or should I just pay out right. Also how do I know I'm not being scammed by one of the finical companies offering their services.
2006-09-05 14:29:49 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Hi,
If your loans are all federal student loans then you can consolidate them and still get all the benefits of deferments and forbearance if you need them. Some lenders have a minimum amount you can consolidate but I think you would be able to do it. The main reason to consolidate your loans is to change your variable rate to a fixed rate (rates have increased by almost 2% for the past two years) and also to help lower your monthly payments.
If your loans are all federal and not private then the government sets your rate. So any lender you go with will give you the same base consolidation rate. The main difference between lenders is the rate incentives they offer. Most give you a discount for signing up for auto-debit and some also give you a discount for on-time payments. So if you shop around, you can lower your interest rate from what you currently have and this will help you pay off your loan sooner if you want.
2006-09-08 12:05:14 · answer #1 · answered by josie 2 · 0⤊ 0⤋
I'm currently deferring several student loans (which delays entering repayment). Right out of school, this is a valuable option if you need a little wiggle room in your finances ... you can't defer your loans if you consolidate.
2006-09-05 16:37:24 · answer #2 · answered by Barry W 1 · 0⤊ 0⤋
It's not a bad idea to consolidate them....just remember, you can only do that once...so if you're planning on getting another loan....wait.
2006-09-05 14:33:50 · answer #3 · answered by tjjone 5 · 0⤊ 0⤋