paying back school loans

Toggle sidebar Toggle sidebar
W

weezergirl

Diamond Member
May 24, 2000
3,366
1
0
I'm about to graduate (December) and I've taken out a bunch of loans for college. Anyways, I keep getting mail about loan consolidation and stuff. The most recent one I got was for 3.5%, a fixed rate federal consolidation loan.?! I have no idea what all of this stuff is. I figured since I'm about to graduate it's probably time to start thinking about paying back these loans and stuff. :p

My question is, am I supposed to take the mail I get for loan consolidation seriously? Or is it just junk mail? What is a good rate? Any tips on paying back school loans? I'm sooo clueless when it comes to this stuff.. :p help me out! thanks
 
S

Sundog

Lifer
Nov 20, 2000
12,342
1
0
3.5% fixed rate for ANY loan is awesome. Especially if it is a Stafford and you are locked in for 10 years.
 
W

weezergirl

Diamond Member
May 24, 2000
3,366
1
0
Originally posted by: michaelh20
just make sure the loan consolidation is really the federal government and not some bogus bank doing it.

http://loanconsolidation.ed.gov/
Click to expand...

thanks for the link
 
OS

OS

Lifer
Oct 11, 1999
15,581
1
76
Originally posted by: weezergirl
I'm about to graduate (December) and I've taken out a bunch of loans for college. Anyways, I keep getting mail about loan consolidation and stuff. The most recent one I got was for 3.5%, a fixed rate federal consolidation loan.?! I have no idea what all of this stuff is. I figured since I'm about to graduate it's probably time to start thinking about paying back these loans and stuff. :p

My question is, am I supposed to take the mail I get for loan consolidation seriously? Or is it just junk mail? What is a good rate? Any tips on paying back school loans? I'm sooo clueless when it comes to this stuff.. :p help me out! thanks
Click to expand...

I'm getting the same junk mail, I haven't gotten the chance to look it over yet. I consolidated last year and I'm already getting like ~5.25% if I use electronic debiting.

 
W

weezergirl

Diamond Member
May 24, 2000
3,366
1
0
i read those articles and one of them says once you consolidate you have to start making payments and to wait til your grace period is nearly over. since my grace period ends six months after i graduate....should i wait before i consolidate?
 
L

lowtech1

Diamond Member
Mar 9, 2000
4,644
1
0
Originally posted by: weezergirl
i read those articles and one of them says once you consolidate you have to start making payments and to wait til your grace period is nearly over. since my grace period ends six months after i graduate....should i wait before i consolidate?
Click to expand...
I haven't heard of such a deal ar 3.5% fixed rate for loan. At one point I was at 12.75% floating rate for student loarn & now it is the lowest I have seen is at 7.5%.

Possibly the best answer you can get is from your bank loan officer.


Good luck!

 
OS

OS

Lifer
Oct 11, 1999
15,581
1
76
Originally posted by: weezergirl
i read those articles and one of them says once you consolidate you have to start making payments and to wait til your grace period is nearly over. since my grace period ends six months after i graduate....should i wait before i consolidate?
Click to expand...

If you're still in school, you don't have to start repaying immediately nor do you lose your grace period. That's what I remember from last year.

Dammit, the article says you can only consolidate once. :( The difference between the lowest they mention and what I got is 1.5%, which is a freaking lot. At 3.5% interest, I might as well borrow a horde of money right before graduation and invest it in a nice indexed stock fund. :D

 
H

huey1124

Golden Member
Sep 19, 2000
1,068
1
0
Originally posted by: weezergirl
i read those articles and one of them says once you consolidate you have to start making payments and to wait til your grace period is nearly over. since my grace period ends six months after i graduate....should i wait before i consolidate?
Click to expand...

since you're graduating in December, i would wait until early June (but before the 6th month mark of your graduation) to consolidate. remember, once you consolidate, your payment starts right away. and by early June, you will know whether the student loan rate will be lowered (T-bill auction date is in May, which directly affects student loan rate that is set on July 1st of every year). but if the new student loan rate (set on July 1st) is not going to be lowered by more than 0.6%, then i would consolidate in June since you can lock in the rate at 0.6% lower than the current student loan rate (due to 0.6% lower rate during your 6 months grace period).

 
NutBucket

NutBucket

Lifer
Aug 30, 2000
27,127
616
126
Originally posted by: OS
Originally posted by: weezergirl
i read those articles and one of them says once you consolidate you have to start making payments and to wait til your grace period is nearly over. since my grace period ends six months after i graduate....should i wait before i consolidate?
Click to expand...

If you're still in school, you don't have to start repaying immediately nor do you lose your grace period. That's what I remember from last year.

Dammit, the article says you can only consolidate once. :( The difference between the lowest they mention and what I got is 1.5%, which is a freaking lot. At 3.5% interest, I might as well borrow a horde of money right before graduation and invest it in a nice indexed stock fund. :D
Click to expand...

You're gonna invest. HAHAHAHA!!

Oh wait, do that. My stock prices need to be driven back up:)
 
You must log in or register to reply here.

TRENDING THREADS

COMPANY
RESOURCES
FOLLOW
Top Bottom