I am trying to consolidate about $45k and need to find out how to get the best rate or if I need to consolidate at all
2007-07-11 05:52:09 · 4 answers · asked by cfuchs05 1 in Education & Reference ➔ Financial Aid
Who is a good company? Where do I find more literature? What is a good percentage rate? Should I find a financial consultant...and what company if so?
2007-07-12 03:04:30 · update #1
First, no matter what company you go with, your fixed interest rate will be the same, anyone who tells you otherwise is lying, period. The differences are in the interest rate reductions and rebates. most companies have on time payment reductions and auto-withdrawal reductions. There are catches with those as well. If the company you consolidate with sells your loan off before you get the reductions you lose the opportunity. The cash rebates are generally filled with fine print, like making your first payment within 60 days of signing the application, yet the company doesn't finish the consolidation until day 61, or like giving you a "rebate" that is really a loan tacked on to your consolidation that accrues interest as well. Whatever you do, do research on the company you go with. Most companies out there have 95-98% of the people who consolidate with them never get the reductions or rebates they were offered.
You will want to consolidate though. It improves your credit, and raises your beacon score. It makes your interest rate fixed, and no longer variable. It will cut your payments by half. You will also have refreshed rights to deferment and forbearance, three years of each.
Wether you consolidate or not, there is no penalty for pre-payment, so throw an extra $20-25 onto your payments, and you will pay it off years earlier, and save a few thousand dollars; the money would go directly to principle, that is why you would save so much.
2007-07-14 10:53:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I know much more about student loan consolidation than I care too. I worked for 7 years at Direct Loans and I know all the ins and outs. What kind of info are you looking for?
What kind of loans do you have?
2007-07-11 10:54:08 · answer #2 · answered by Andrea B 3 · 0⤊ 0⤋
I just consolidated with Sallie Mae and they give so many options for repayment. It's less confusing when you consolidate. Watch out for those fly-by-night offers for consolidation. Sallie Mae has a lot on their website. See below.
2007-07-11 05:59:49 · answer #3 · answered by Ra-ra 2 · 1⤊ 0⤋
PCFS is correct. The weighted average is the same, look for the borrower benefits.
2007-07-14 13:16:24 · answer #4 · answered by John 3 · 0⤊ 0⤋