In the past three weeks I have gotten paperwork from three different companies saying I can reduce my payment and interest rate.
Anyone ever do this, or have any opinions on it either way?
In the past three weeks I have gotten paperwork from three different companies saying I can reduce my payment and interest rate.
Anyone ever do this, or have any opinions on it either way?
After years of avoiding payment via forebearances and deferrments and coming very close to defaulting on a single obscure loan, I finally had all of my student loans consolidated into one by Sallie Mae. You make one payment on the lump sum as opposed to paying out one loan at a time.
"A witty woman is a treasure, a witty beauty is a power!"
I had Direct Loans from the US Department of Education, and consolidated them a few years ago....much simpler, and I got a better interest rate.
"Growth is inevitable and desirable, but destruction of community character is not. The question is not whether your part of the world is going to change. The question is how." -- Edward T. McMahon, The Conservation Fund
I consolidated about 2 years ago and it reduced the payments significantly and I got a better interest rate. Then they lowered the interest rate after 1 year of paying the bills on time.
I wish I would have waited because the rates are extremely low now. I would compare the interest rate offered by these companies with the rate that the government would give you. You may get a beter rate from the US Dept of Education than one of these firms. You can even consolidate online and you have no payments while they are doing the consolidating paperwork (about 2 months).
"I'm a white male, age 18 to 49. Everyone listens to me, no matter how dumb my suggestions are."
- Homer Simpson
I looked into it but my balance was too low.
I know, such problems!
We consolidated mine a bit ago through Salliemae and got a much lower rate, but you can only do it once, and i was sad that i didn't wait, because it is much much lower since then. if you've got a healthy balance, i would definitely investigate. rob's sister just did hers a little while ago.
Finally got off my arse and consolidated recently. Now I have a better interest rate and pay $200 less per month. Woohoo!!!
Aren't all consolidations a scam?
Everyone I ever got an offer for, lowered the payment and interest rate, but I'd still end up paying way more in the end.
I just bear with it. Only 5 more years to go. Ugh!
Mike is right. Check the numbers closely. I just examined one offer to consolidate my three loans, two at 4.5% and one at 4.75%. The interest rate they offered was rounded to the next 0.125% above the wieghted average rate of the three - which would have me paying 4.625% on a consolidated loan. The monthly payment was lower, but I would pay more in the end, even taking advantage of the discount for electronic payment.
That's exactly what I did, I think I'm getting 3.2% with a .01% decrease for having it automatically come out of my account every month.Originally posted by NHPlanner
I had Direct Loans from the US Department of Education, and consolidated them a few years ago....much simpler, and I got a better interest rate.
When Jesus said "love your enemies", he probably didn't mean kill them.
That's what I was worried about. What I would do is get the lower interest rate and pay the same as I am paying now - I don't want to pay this stupid thing back for 20 years.
Thing is, I am scared that I will get into the habit of paying the new, lower amount and not want to increase it. I think I am paying 7.5% now.
Quote
