I received a letter yeterday in the mail. It says that I can get a consolidation loan on my student loans for 3.5%. Has anyone else received a similar notice?
Oh damn... I just consolidated mine at 4.25. I could have saved .75 basis point. oh well.. Thanks for the update.
I received this too... but personally I would rather stick with my consolidation through the Feds than through a third party. I do not know there was not much information as to who is offering this consolidation that it made me.. a little.. leery.
sirrowan The mailer you received pertains to consolidating your student loans. All consolidators are required to offer the same rates and these rates are set by the Federal Government. The 3.5% rate is only available if you are still within your grace period and if all your loans were taken out after July 1, 1998. Whether you consolidate directly with Direct Loans or with one of the FFELP consolidation companies, they all are required by Federal regulations to use the same formula to determine what your rate will be. Depending on when you originally recieved your dispersements (each dispersement is considered a seperate loan), your rates can be anywhere from 3.5% to upwards of 8 or 9%. When you consolidate your loans, a weighted average interest rate is determined using a Federal formula that is identical no matter where you go. Most people in repayment have rates of either 4.06% or 4.86%. Or they may have a combination of those rates. Stafford loans taken out between July 1, 1994 and June 30, 1998 have a current repayment rate of 4.86%. All Stafford loans taken out after July 1, 1998 have a current repayment rate of 4.06%. Hope this helps. fla-tan
erich You didn't miss out on anything. The rate you got is the same rate that anyone offing a Federally Guaranteed Consolidation loan would have to offer you. fla-tan
my wifes' student loans got consolidated once. consolidated right out of my tax return! i got a letter in the mail 'your loan is paid in full, we took your tax return, have a nice day' gheez.
