Student loan consolidation?

[OoteR02]

I searched the forum briefly, and this didn't seem to have any info.

The tail end of my federal loans suck for interest, something like 6.8% (it was like sub 4% at the beginning) and I'm trying to find out the best way to consolidate.

I've got about 35k or so in student loans floating around. 20k is Stafford loans. The feds will consolidate it and the rate averages out to about 5.8% for me. Can anyone private beat that? I'd like to consolidate all of my debt (a CC as well that grew because of loan shortfalls) to one bank.

Anyone know of any decent programs? I have excellent credit (last i checked it was like a 690 or some such thing), I've never missed a payment and am working a steady job. I don't own a home, and my car isn't worth enough for collateral.

I did some google searching and mainly came up with places pushing referall and 'lead' links, not a whole lot of actual information.

Thanks for any advice or ideas!

 

[lykaon78]

Wait it out. The Obama administration will likely cut student loan rates. If you consolidate you will lock in your current interest rate and can only consolidate once.

I consolidated my student loans (Stafford) to lock in a 3.25 interest rate about 5 years ago.

Make sure you're consolidating and not re-financing. If you re-finance you'll lose the hardship and deferral protections that the Staffard programs offer.

 

[SarcasticDwarf]

I am in a similar situation. I have about 40k in loans I will have to start paying on in June, all with 6.8% interest rates. Unfortunately it went from about 30 to about 2 banks that do consolidation loans, so the only real option is the federal direct consolidation loan program.

 

[OoteR02]

Originally posted by: lykaon78
Wait it out. The Obama administration will likely cut student loan rates. If you consolidate you will lock in your current interest rate and can only consolidate once.

I consolidated my student loans (Stafford) to lock in a 3.25 interest rate about 5 years ago.

Make sure you're consolidating and not re-financing. If you re-finance you'll lose the hardship and deferral protections that the Staffard programs offer.

Nice rate.

Do you have a link to the new administrations goals pertaining to this? I hadn't seen them.

I hope they can push something through, I started school in 2003 and it was like 2% or some nonsense, then it grew to the 6.8% quickly.. It's stupid that my CC has a 5.99% rate, I'd be better off paying my loans off onto a CC... Stupid. How did the federal loans turn into such a money-making scheme? inflation force the high rate?

I have one set of private loans, which arent a big deal.

Anyone consolidate CC debt along with student debt before?

 

[MikeyLSU]

I think all of mine were Stafford loans and I conolidated in Jan 2004 at either 2.3 or 2.5%, can't remember.

That is one loan I will not pay off early. Only 25 years to go, lol

 

[Riverhound777]

Consolidated mine a few years ago at 2.625%. They just lowered it to 1.625% after 36 months.

 

[shopbruin]

Originally posted by: Riverhound777
Consolidated mine a few years ago at 2.625%. They just lowered it to 1.625% after 36 months.

Me too.

 

[scorp00]

I reconsolidated mine to 2.625% a few years ago. I think it is dropping to 2.125% in the next 6 months. I went through a state agency, those seem to have great deals sometimes. Fatwallet finance forums has a thread about the best consolidation deals.

 

[lykaon78]

Originally posted by: OoteR02

Originally posted by: lykaon78
Wait it out. The Obama administration will likely cut student loan rates. If you consolidate you will lock in your current interest rate and can only consolidate once.

I consolidated my student loans (Stafford) to lock in a 3.25 interest rate about 5 years ago.

Make sure you're consolidating and not re-financing. If you re-finance you'll lose the hardship and deferral protections that the Staffard programs offer.

Nice rate.

Do you have a link to the new administrations goals pertaining to this? I hadn't seen them.

I hope they can push something through, I started school in 2003 and it was like 2% or some nonsense, then it grew to the 6.8% quickly.. It's stupid that my CC has a 5.99% rate, I'd be better off paying my loans off onto a CC... Stupid. How did the federal loans turn into such a money-making scheme? inflation force the high rate?

I have one set of private loans, which arent a big deal.

Anyone consolidate CC debt along with student debt before?

I may be wrong but I believe Obama talked about making college more affordable during one of the debates. Can't say that I've ever seen it in writing. In any event its a very Democratic thing to do.

 

[Beev]

I have more private student loans than I do federal, so I'm practically screwed when it comes to consolidating. Oh well, maybe Obama will help me too

 

[Imported]

Originally posted by: Beev
I have more private student loans than I do federal, so I'm practically screwed when it comes to consolidating. Oh well, maybe Obama will help me too

Same here.. :[

 

[Aimster]

How are you going to consolidate? None of the banks are doing it anymore. Citi was the last one I knew about and last month they removed it from their website. Maybe they put it back up.

SallieMae doesn't even give out student loans. My brother has been trying and they haven't given him a response.

For me I got loans in 5minutes. I now owe 50k. Start payments in a few months

 

[Corporate Thug]

I just consolidated thru the department of education.

 

[HardcoreRobot]

govt subsidizes tuition
demand for college education grows as it is more affordable
supply of college education does not keep up
tuition gets more expensive for everyone

round and around we go...

 

[sactoking]

Student loans used to be offered through Stafford and Perkins at variable rates. One of the things Bush did (or Congress, or whoever) was set them at a fixed rate. I think that was done in 2006, when rising rates made people panic and think their student loans were going to balloon to 15%. The subsequent 'credit crunch' wiped most private lenders out of the market. Now many students are stuck in 5+% loans when interest rates are so low. Federal consolidation programs don't offer consolidation at current rates, they offer consolidation at the weighted average rate of your current loans, which really blows.

I feel sorry for students nowadays. When I graduated, loan rates were still variable and tied to market. I consolidated at the low point, got the incentive for 12 months on time, and for ACH debit. I'm locked in for 20 years at 0.8%.

 

[Aimster]

The only good news is the interest is a tax deductible.

 

[JS80]

I consolidated mine at 1.625% back in 2004. Should be similar now I would think.

 

[OoteR02]

Originally posted by: JS80
I consolidated mine at 1.625% back in 2004. Should be similar now I would think.

They go by what your loan % is, and then consolidate in the middle of it for federal stuff.. Mine would be like 6.5 or some such nonsense if i consolidate now.

 

[Tiamat]

Half of my loans are 4.2% and the other was fixed 6.8%. I just cut a check for the 6.8%. I'll be paying the 4.2% off slowly, since they are variable rate, I'm hoping they will be decreasing.

Also, many of the typical loan companies are not doing consolidations right now. I think Direct Loans is but Sallie Mae is not.

 

[SarcasticDwarf]

Originally posted by: sactoking
Student loans used to be offered through Stafford and Perkins at variable rates. One of the things Bush did (or Congress, or whoever) was set them at a fixed rate. I think that was done in 2006, when rising rates made people panic and think their student loans were going to balloon to 15%. The subsequent 'credit crunch' wiped most private lenders out of the market. Now many students are stuck in 5+% loans when interest rates are so low. Federal consolidation programs don't offer consolidation at current rates, they offer consolidation at the weighted average rate of your current loans, which really blows.

I feel sorry for students nowadays. When I graduated, loan rates were still variable and tied to market. I consolidated at the low point, got the incentive for 12 months on time, and for ACH debit. I'm locked in for 20 years at 0.8%.

Yup. All of us that are currently or just recently in college are screwed. I doubt our savior Obama is going to do anything to the existing loans as modifying the terms will be near impossible.

 

[OoteR02]

I wonder how many of us in this situation there are.

Seriously, paying more on my student loans than my CC, that is stupid.

 

[Special K]

Originally posted by: OoteR02

Originally posted by: JS80
I consolidated mine at 1.625% back in 2004. Should be similar now I would think.

They go by what your loan % is, and then consolidate in the middle of it for federal stuff.. Mine would be like 6.5 or some such nonsense if i consolidate now.

Stafford loans issued after June 2006 are at a fixed 6.8%. Consolidating these loans will not reduce your interest rate, and may actually increase it since some consolidation programs will round up to the nearest quarter percent. Stafford loans issued on or before June 2006 are tied to the 91 day T-bill yield and reset once per year.

The rates for subsidized undergraduate Stafford loans is set to gradually reduce down to 3.4% by 2012. It will then jump back up to 6.8% in 2013. Graduate Stafford loans are all still fixed at 6.8%:

link

 

[OoteR02]

The rates are going to drop.. for those that are new correct? not the old ones out of the kindness of their hearts..

 

[Aimster]

2 of my loans are 3.75 and the other two are 4.75 and 5.0. These are variable rates. The first two loans I got at 0%+Prime. It would be sweet if I could lock them in at 3.75 but I cant since no bank is going to do it.

 

[SagaLore]

Originally posted by: JS80
I consolidated mine at 1.625% back in 2004. Should be similar now I would think.

With what lender?