student loan consolidation deal

Discussion in 'Credit Talk' started by making, Jul 9, 2001.

  1. making

    making Well-Known Member

    Not competely on topic, but....

    If you're not aware, if you have at least one Direct Loan, right now you can do a loan consolidation that is a great deal. If you consolidate before Sept. 30 you get an .8% rate reduction if you make your first 12 payments on time. In addition, the interest rate becomes fixed. Usually, interest rates for student loans are determined on july 1 each year based on the 91 day t-bill rate. The t-bill rate is very low rate now (like 3.1%), so the rate being fixed, IMO, is a great deal.

    check out

  2. fla-tan

    fla-tan Well-Known Member

    Actually, that is a pretty good offer. However they are not the only organization that offers consolidation of student loans and some others are also offering very nice offers.

    Student loans(Stafford only) are calculated using the 91-day T-Bill based on the last auction in May of each year effective July 1 of that year. The last auction in May came in at 3.68% which the Dept of Ed rounded to 3.69%. If you took your Stafford loans out after July 1, 1998 your current repayment rate is now 5.99% (there is a different in school/grace rate). If your loans were taken out prior to July 1, 1998, then your repayment rate is 6.79%.
    If you have loans from both before and after July 1,1998 then in consolidation, they will do a waited average rounded up to the nearest 1/8%. These are the lowest rates in the history of the Stafford loan program and will most likely go up again next July 1st. Consloidation will allow you to lock in the lower current rate because, when you consolidate, the loan becomes a fixed rate loan and is no longer a variable rate.

    Consolidation also can provide other benefits. If you are deliquent on payments(not in DEFAULT) then consolidation will bring you current. You are allowed to extend the term of you student loans to a maximum of 360 months(30 years) depending on what the amount of debt is when you consolidate.

    I do represent a Company that does Student Loan Consolidations and if you are interested in learning more about them, please email me with contact info, including a phone number and the best time to reach you, and I will provide you with that info. Whether you consolidate with my company, the Direct Loan people, or with your current servicer, this is a great time to do so.

  3. tom65432

    tom65432 Well-Known Member


    I tried to send you an email to get more info on a loan consolidation for my son but apparently you are not set up to receive email through this site. Please email me at I would like to get more info.
  4. fla-tan

    fla-tan Well-Known Member

    Tom I have sent you my email address. Sorry about the mixup.


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