Attn Students W/ Loans

I consolidated with Sallie Mae. MY interest rate is 5.75%. Not too bad since before consolidation I was at 8%

 

I just got an offer for 4.5% but I've got a few more courses in my masters so I'll wait. Besides, my var. rate came in today at 3.75% But, it's a great option for those that are interested.

Just a note for eductors and some other professions, certain loans can be cancelled if you work in certain areas, specialities, etc. For instance, teachers can get a % cancelled of certain loans if they teach math or in a lower economic area. However, this is only true for certain loans, for example: Perkins or Stafford. So, if you consolidate, that option is no longer available to you. Just something to check into before consolidating.

 

I \'M STILL A STUDENT CAN YOU STILL CONSOLIDATE LOANS THAT ARE IN DEFERMENT?

 

I'm no expert, but I know you want to be careful about consolidating them too soon! Ideally, I think is to wait until you are done...but someone may know better!

I do know that I have my BA and I consolidated. I'm now working on my masters and when done will consolidate again most likely. I know this is possible.

 

Yes, you can consolidate loans that are in deferment. It just looks like you paid them early. I didn't have any adverse effects on my reports for consolidating loans in deferment.

 

While you can conslidate loans that are in deferment, you normally cannot conslidate loans that are in student deferment. You have to wait until you finish school. Or you would have to take a "semester off". Here is the breakdown on Stafford Loan rates:

1) loans taken out after 7/1/98 in repayment: 4.06%

2) loans taken out after 7/1/98 in deferment: 3.46%

3) loans taken out after 7/1/98 in grace: 3.46%

4) loans taken out after 7/1/98 in school: 3.46%

catagory 1&2 use 4.06% for calculating rate in consolidation catagory 3 uses 3.46% for calculating rate in consolidation.

5) loans taken out between 7/1/95-6/30/98 in
repayment: 4.86%

6) loans taken out between 7/1/95-6/30/98 in
deferment: 4.26%

7) loans taken out between 7/1/95-6/30/98 in
grace: 4.26%

8) loans taken out between 7/1/95-6/30/98 in
school: 4.26%

same rules for all catagories as above

When consolidating, they take a waited average of all your loans and interest rates to give you your interest rate. The formula is not overly complicated.

Hope this helps

fla-tan

 

Fla-tan:
Thanks for clearing that up....

 

Actually, there is more to the loans than what I provided. However, that will provide most people a good bit of the information they will need.

Another thing, the rates as I quoted, are only good until June 30, 2003. And all indications are showing that they will be going up then, though it is way to early to know by how much.

fla-tan

 

If you want to consolidate while still in school, it depends on what kind of loans you have. If you have at least one direct loan, you can go through the direct loan consolidation program. If you only have FFEL loans, you have to wait until you're out of school.

 

I just consolidated mine at 3.5%.

 

If one wanted to consolidate a loans. Who would you guys suggest?