If anyone is thinking about consolidating, NOW is the time to do it. Before Sep 30, 2001, if you consolidate, you'll get a .8% reduction in your interest, guaranteed no more than 8.25% for the life of the loan, AND if you make 12 payments (WHEN they are due, not now), you'll keep the lower rate! Deb ----------------------------- From http://loanconsolidation.ed.gov/borrower/borrower.shtml Direct Consolidation Loans Receive a 0.8% Rate Reduction As an incentive to encourage timely student loan repayments, all borrowers who consolidate eligible student loans into the Federal Direct Consolidation Loan Program between October 1, 2000, and September 30, 2001, will receive an immediate interest rate reduction of 0.8 percent. However, to keep this benefit beyond the initial 12-month period, a borrower must make the first 12 monthly payments on time. The 0.8 percent rate reduction will become permanent once these first 12 payments are made on time. For example, if your Direct Consolidation Loan interest rate is 8.25 percent, your interest rate drops to 7.45 percent. If you make your first 12 payments on time, you keep that interest rate and could save more than $400 for every $10,000 borrowed over a standard 10-year term
Yep. It was posted on my college's financial aid website (Mich St). They were encouraging people to consolidate NOW, even if you are not due to start repayment for a few years... http://www.finaid.msu.edu/ "IMPORTANT ANNOUNCEMENTS! If you have student or parent loans you have a special opportunity until September 30 to consolidate your loan(s), locking in today's very low interest rates. " Deb
If memory serves me, you can also get a .25% interest rate reduction if you have your payment automatically debited from your checking account.
EdG, Right you are! The savings are really great, and I was going to set up my repayment that way anyway! I hate to write checks.