I was just looking at my husband's student loan and it's at a variable rate of 7.14%!!!!! Can I do anything about this? It's only for $4500 so I guess I can't consolidate it right? How can I get a lower interest rate and make it fixed?
2006-09-12 15:33:45 · 7 answers · asked by Anonymous in Education & Reference ➔ Financial Aid
Well you could probably go to a local bank and get a short term loan for that small of an amount and get either the same rate at a fixed percentage, or even lower. The thing to take into factor that a lot of people forget about with student loans. . . .You can usually deduct your interest payments at tax season. A personal loan from a bank will not be tax deductible. You'd have to really get the nubmers down on paper to see how much you'd say in the long wrong comparing the two factors, and taking into consideration the work of a re-finance. Also, make sure there are no fees attached to either loan, like a pre-pay off penalty on the student loan, etc.
2006-09-12 15:43:16 · answer #1 · answered by ShouldBeWorking 6 · 0⤊ 0⤋
7.14% isn't that bad - my husband's is fixed at 9% (and his was originally for $40,000). If he has more than one loan, he can consolidate (even if he doesn't, I've heard of some places that will "consolidate" one loan). Otherwise, look into personal loans and home equity loans (if you own a home). Avoid credit cards, even with an introductory rate. If you don't pay it off during the introductory period (usually around 6 months), your rate will jump up well over what you're paying now.
2006-09-12 15:39:39 · answer #2 · answered by homeschoolmom 5 · 0⤊ 0⤋
Here is some student loan consolidation info:
http://www.529s.com/college-loan-consolidation.html
Don't compare your rate with mortgage rates.
7.14% is not bad. Consider rounding up on your payments.
If you pay $215 a month, round up to $220 or $250.
This way you'll have that loan paid off much faster.
2006-09-13 09:27:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You may be able to get a loan at a bank with a cheaper interest rate (if your credit score is good) but you wouldn't be able to get a consolidation because the interest rate is not high enough.
2006-09-12 15:39:33 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found after
doing a google search :
http://umgarticles.atspace.com/debt-cons...
2006-09-12 20:50:26 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Go to your bank and ask them. Of course by the time you "refincance" it, the loan origination and other fees that banks tend to tack on will probably bring the balance due higher than it already is. I would just try to pay a little extra each month towards the principle and get it paid off.
2006-09-12 15:39:59 · answer #6 · answered by troythom 4 · 0⤊ 0⤋
Capital One.
Ask for the card specifically for balance trasfers.
Balance transfers are charged $30.00 dollars each transaction and the APR is 3% fixed for the life of the loan.
2006-09-12 15:43:15 · answer #7 · answered by Prince V 2 · 0⤊ 0⤋