Consolidation - 2007

[tryingagain]

I have 3 years of Direct Loans consolidated at 3.875 fixed and also 1 year of Sallie Mae which are at 6.8.

I'm looking for the best consolidation company to consolidate with. Currently I have the T.H.E. company in mind. What would you all recommend looking at or what did you go with and why???

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[dpmd]

Why are you interested in consolidating? You currently have two loans that have fixed interest rates. I think you would be better off keeping them separate and just plan on paying off the higher interest rate loan faster. If you are interested in the extended payment plan that you get with consolidation, you should be able to get that by asking. Many of the incentives are the same (depending on what your lender offered when you took the loan out).

 

[tryingagain]

Why are you interested in consolidating? You currently have two loans that have fixed interest rates. I think you would be better off keeping them separate and just plan on paying off the higher interest rate loan faster. If you are interested in the extended payment plan that you get with consolidation, you should be able to get that by asking. Many of the incentives are the same (depending on what your lender offered when you took the loan out).

Well, because I went with Graduate Leverage and they gave me 2.8% over the term of the loan (30 years). That's much better than I would have done if I would have not consolidated.

For those of you looking to consolidate let me save you some time. Look at the T.H.E. loan and also Graduate Leverage. Those are the best 2 out there from what I found.

 

[Miami_med]

Well, because I went with Graduate Leverage and they gave me 2.8% over the term of the loan (30 years). That's much better than I would have done if I would have not consolidated.

For those of you looking to consolidate let me save you some time. Look at the T.H.E. loan and also Graduate Leverage. Those are the best 2 out there from what I found.

I think his point was keep your 6.8% apart from the others and pay it down first.

 

[tryingagain]

I think his point was keep your 6.8% apart from the others and pay it down first.

I understand. But why would I do that if I was able to get 2.875% on ALL of my loans? The only downside that is until I qualify for their benefits I will be slightly higher on my 3.875% loans (weighted avg is 4.625%) but after 20 or so on-time payments my rate is lowered to 2.875% for all loans involved.

I simply couldn't beat that. Or pass it up.

 

[Slippermen]

My question would be;

Why ask "I'm looking for the best consolidation company to consolidate with. Currently I have the T.H.E. company in mind. What would you all recommend looking at or what did you go with and why???"

and immediately reply with "Well, because I went with Graduate Leverage and they gave me 2.8% over the term of the loan (30 years). That's much better than I would have done if I would have not consolidated."

If you have already consolidated why play games?

 

[tryingagain]

My question would be;

Why ask "I'm looking for the best consolidation company to consolidate with. Currently I have the T.H.E. company in mind. What would you all recommend looking at or what did you go with and why???"

and immediately reply with "Well, because I went with Graduate Leverage and they gave me 2.8% over the term of the loan (30 years). That's much better than I would have done if I would have not consolidated."

If you have already consolidated why play games?

Not playing games. I had never even heard of Graduate Leverage before posting this thread. I posted the question here and then read a little more on this website.

I discovered GL and did a little more homework and came to the conclusion above.

 

[dpmd]

Didn't you have that same incentive on your initial consolidation, that would have reduced the rate to 1.875? I guess if you consolidated with a company that didn't offer you good incentives it might make sense to switch. But if you chose your lender wisely, you could already have those incentives without increasing the interest rate on your low interest loan. Also, consolidating again restarts the clock on your on time payments (if you have been making payments already), and economic hardship deferment will pause the clock (or I have heard with some lenders it restarts the clock or makes you ineligible for the incentive-no idea if this is true).

 

[Slippermen]

Not playing games. I had never even heard of Graduate Leverage before posting this thread. I posted the question here and then read a little more on this website.

I discovered GL and did a little more homework and came to the conclusion above.

Consolidating everything at a previous rate sounds like a steal...it is....not the way you think though. You are getting an auto-debit discount that is called something else, nothing more. You will also notice when you get a quote from them it will be based on a graduated repayment plan instead of level. Makes it look better than it is.... once again.

Look for companies that will give you -at minimum-a 2% reduction, put it in writing and base their on-time payments on "required" payments so that deferment does not negatively effect you. Oh...and make sure benefits are permanent once they are earned...

I have a great amortization comparison calculator but I don't have the computer skills to upload it. If anyone wants it they can pm me