Students Rush to Beat Loan Rate Deadline.

[IGBT]

Text

The unusually sharp increase has prompted a wave of last-minute inquiries, causing back-ups for banks' 800 numbers and at the Department of Education's Direct Loan Servicing Center, where at least some calls weren't getting through Wednesday.

Borrowers flooded the Department of Education and lenders with phone calls as they rushed to beat the deadline to consolidate student loans before interest rates rise.

 

[chuckywang]

Why consolidate at all? You'll be paying more in the long run.

 

[733SHiFTY]

banks are a-holes

(starts lookin for company to pay for grad-school)

 

[iamwiz82]

Originally posted by: chuckywang
Why consolidate at all? You'll be paying more in the long run.

You can pay more than the minimum each month.

 

[dullard]

Originally posted by: chuckywang
Why consolidate at all? You'll be paying more in the long run.

Not at all. Consolidating a $10k loan today will save about $1k in interest (assuming interest rates don't go any higher. In that case, you'll save a lot more by consolidating today).

 

[chuckywang]

Originally posted by: dullard

Originally posted by: chuckywang
Why consolidate at all? You'll be paying more in the long run.

Not at all. Consolidating a $10k loan today will save about $1k in interest (assuming interest rates don't go any higher. In that case, you'll save a lot more by consolidating today).

Then how come schools advise against consolidation?

 

[iamwiz82]

Originally posted by: chuckywang

Originally posted by: dullard

Originally posted by: chuckywang
Why consolidate at all? You'll be paying more in the long run.

Not at all. Consolidating a $10k loan today will save about $1k in interest (assuming interest rates don't go any higher. In that case, you'll save a lot more by consolidating today).

Then how come schools advise against consolidation?

Because if you consolidate you being payments immediately, losing your grace period.

 

[733SHiFTY]

it kinda sucks for those just going into college now, who get stuck with higher interest loans.

Also, for the UKers here, I remember a song by the band "the streets" that talks about government funding for further education, so how much does the govt really help out with paying for college?

 

[MikeyIs4Dcats]

Originally posted by: iamwiz82

Originally posted by: chuckywang

Originally posted by: dullard

Originally posted by: chuckywang
Why consolidate at all? You'll be paying more in the long run.

Not at all. Consolidating a $10k loan today will save about $1k in interest (assuming interest rates don't go any higher. In that case, you'll save a lot more by consolidating today).

Then how come schools advise against consolidation?

Because if you consolidate you being payments immediately, losing your grace period.

some programs will still allow you the grace period. The biig hitch is if you have Stafford loans, they are already at a lower rate, so it makes no sense to consolidate loans with lower rates.

 

[woowoo]

Originally posted by: chuckywang
Why consolidate at all? You'll be paying more in the long run.

Not too good at math
Eh? Chucky?

 

[iwantanewcomputer]

Originally posted by: iamwiz82

Originally posted by: chuckywang

Originally posted by: dullard

Originally posted by: chuckywang
Why consolidate at all? You'll be paying more in the long run.

Not at all. Consolidating a $10k loan today will save about $1k in interest (assuming interest rates don't go any higher. In that case, you'll save a lot more by consolidating today).

Then how come schools advise against consolidation?

Because if you consolidate you being payments immediately, losing your grace period.

sorry to say it but chuckywang got pwned

 

[iamwiz82]

Originally posted by: MikeyIs4Dcats

Originally posted by: iamwiz82

Originally posted by: chuckywang

Originally posted by: dullard

Originally posted by: chuckywang
Why consolidate at all? You'll be paying more in the long run.

Not at all. Consolidating a $10k loan today will save about $1k in interest (assuming interest rates don't go any higher. In that case, you'll save a lot more by consolidating today).

Then how come schools advise against consolidation?

Because if you consolidate you being payments immediately, losing your grace period.

some programs will still allow you the grace period. The biig hitch is if you have Stafford loans, they are already at a lower rate, so it makes no sense to consolidate loans with lower rates.

My Staffords were at 3.37% variable, the current consolidation loan is 2.8% fixed.

 

[Mayfriday0529]

yeah i got a letter from Citibank about the interest rate change. I consider it and dont want to do it, also i think you need a minimum of 10,000$ to do it, i only have about 7000$

 

[IGBT]

..waiting for the economic students to chime in. 😀

 

[shopbruin]

Originally posted by: MikeyIs4Dcats

Originally posted by: iamwiz82

Originally posted by: chuckywang

Originally posted by: dullard

Originally posted by: chuckywang
Why consolidate at all? You'll be paying more in the long run.

Not at all. Consolidating a $10k loan today will save about $1k in interest (assuming interest rates don't go any higher. In that case, you'll save a lot more by consolidating today).

Then how come schools advise against consolidation?

Because if you consolidate you being payments immediately, losing your grace period.

some programs will still allow you the grace period. The biig hitch is if you have Stafford loans, they are already at a lower rate, so it makes no sense to consolidate loans with lower rates.

can't rise above 8.25%, however your interest rate is variable every year, depending on what congress sets it at, and is usually based on the 3 year tbill.

i consolidated after i was done in 2003, interest rate locked in at 2.625

 

[chuckywang]

Originally posted by: woowoo

Originally posted by: chuckywang
Why consolidate at all? You'll be paying more in the long run.

Not too good at math
Eh? Chucky?

What are you talking about?

 

[dullard]

Originally posted by: MikeyIs4Dcats
The biig hitch is if you have Stafford loans, they are already at a lower rate, so it makes no sense to consolidate loans with lower rates.

Stafford loans are variable, but capped at just over 8%. The interest rate on July 1st becomes about 5% for Stafford loans. If you consolidate before July 1st, you get 2.8% fixed (with possible deductions to under 2% for electronic debit and ontime payments).

Now that some consolidation loans are coming with grace periods, there may be no reason at all not to do it TODAY.