Hot deal: Student loan consolidation

[dshodson]

im not aware of any limited time offers at the moment but if someone else is then please inform us

D

 

[RossMAN]

I love these kind of Hot Deals.

 

[Biznatcho]

Is the Online Calculator on the FDCL site still using last year's rates? I ask because I could not get a rate lower than 5.5% ...

 

[docinthebox]

The online calculator at the loanconsolidation.ed.gov site uses rates you give it. If you give it last year's rates, it'll come up with results using last year's rates.

So try again using this year's new rates (link).

Here's a brief summary of last year's rates vs. this year's rates:

6.79% => 4.86%
6.19% => 4.26%
5.99% => 4.06%
5.39% => 3.46%

HTH!

 

[DQderrick]

I just got something in the mail yesterday from the "College Loan Corporation". They state that I "may be eligible to lock in an interest rate as low as 3.5% on your Federal Education Loans through the Federal Consolidation Loan Program."

It also goes on to say, "Current Federal Consolidation Loan interest rates are the lowest in the history of this government program."

At first glance, I thought this was through my loan company... but now I realize it's not. I think I'll give them a call just to see what they have to say. I'm pretty sure I won't get 3.5%, but you never know.


OH, and here are the bullet points under the text:

[*]Many borrowers can lock in interest rates as low as 3.5%
[*]Lower monthly paments by as much as 50%
[*]No application fees or charges
[*]No prepayment penalties
[*]Tax-deductible interest for many borrowers
[*]No credit checks or co-signers required
[*]One-page application

Funny how the use the words "many borrowers". I wonder if I am one of the many.


~DQderrick

 

[docinthebox]

Here's my 2 cents regarding shopping for a lender to consolidation your student loans with.

Basically, the rates are fixed. No matter which lender you go with, you'll get the same rates.

What you need to look at are the extra rate reductions, if any. These usually include 0.25% reduction if you let them deduct the monthly payment directly from your bank account, and 0.75% to 1% reduction after paying on time for a number of months (vary from lender to lender from 6 months to 48 months).

The best plans I've come across so far are:

http://www.studentloan.org (0.25% rate reduction for direct payment + 0.75% rate reduction after 6 months of on-time payment.)

Suntrust (0.25% rate reduction for direct payment + 1% rate reduction after 36 months of on-time payment.)

Take a look at the thread at FW for more info.

 

[Boomer2]

Bummer...wish this happened 2 or 3 years ago. My interest much less than half the payment now; so would be shooting myself in the foot not to finish the last few years of payments. Can almost smell freedom in the wind....

 

[pannam1]

Hey guys... if any of you guys are in forbearance its real important that you switch to deferment (yes, there's a difference) if at all possible... :Q

Consolidation while you are in deferment gives you a LOWER interest rate than doing the same when you are in FORBEARANCE. Luckily I'm still able to qualify for deferment (based on income -> economic hardship ) because my wife doesnt have a job yet...

Thanks to a guy from one of these consolidation companies(National Student loan Consolidation Corp at nslcc.com) who gave me the lowdown... He knew his stuff so I am going to give my loan consolidation business to him

Also, consolidation also resets your maximum elgibility for deferment and economic hardship...