Consolidating old federal loans

[medblazer21]

---

Members don't see this ad.

OK I have both subsidized and unsubsidized loans from college that were before 2006 and thus are using variable interest rates instead of the 6.8% fixed rate.

Questions:

1) My current variable interest rate is 5.8%. Is that considered high or low for federal school loans?

2) At what interest rate should I consolidate? When do the rates change again?

3) I dont graduate school until May 21st, so I'm assuming I cant consolidate until after that date?

4) When I consolidate, is it good to consolidate ONLY the unsubsidized loans? Do I have that option, or once I consolidate it forces all the loans (both sub and unsub) into the consolidation package?

5) When shopping for a consolidation lender, what kind rates do they advertise? Do they give you a straight up total rate? Or do they give it in terms of PRIME + 2% or LIBOR + 8% or whatever?

 

[Doctor Bagel]

The new rates will be released on July 1, and I think the general expectation is for them to drop. So personally I'd wait, but there are no guarantees.

As for consolidating sub and unsub, you don't lose any advantages of the sub loans in the consolidation process. Your lender will still keep both balances separate, and interest will accrue in the same manner as it would had you not consolidated.

 

[CorpusERdoc]

OK I have both subsidized and unsubsidized loans from college that were before 2006 and thus are using variable interest rates instead of the 6.8% fixed rate.

Questions:

1) My current variable interest rate is 5.8%. Is that considered high or low for federal school loans?

2) At what interest rate should I consolidate? When do the rates change again?

3) I dont graduate school until May 21st, so I'm assuming I cant consolidate until after that date?

4) When I consolidate, is it good to consolidate ONLY the unsubsidized loans? Do I have that option, or once I consolidate it forces all the loans (both sub and unsub) into the consolidation package?

5) When shopping for a consolidation lender, what kind rates do they advertise? Do they give you a straight up total rate? Or do they give it in terms of PRIME + 2% or LIBOR + 8% or whatever?

Do not consolidate loans that have different interest rates, or the lower rates will rise.