Help with interest calculation

[Etomidate]

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Having a brain fart here.

I have $115,500 in Stafford loans from the first 3 years of medical school.

I recently consolidated them at 2.875% for 30 years.

I have the option of adding my last Stafford loan ($38,500) onto my consolidation, but the new interest rate after July 1 (probably around 4.5%) will be weighted in, bringing my new consolidaton rate up to around 3.25%.

My calculation question:

What would be the total interest paid over 30 years if I consolidated all my Stafford loans, $154K, at 3.25%?

What would be the total interest paid over 30 years if I consolidated my previous Stafford loans, $115K, at 2.875% and then consolidated my last Stafford loan separately, $38500, at the new interest rate, let's say 4.5%?

All of this serves to answer the question if it's better to consolidate this final Stafford loan into my previous package or just consolidate it separately.

Thanks.

 

[bryan45876]

Having a brain fart here.

I have $115,500 in Stafford loans from the first 3 years of medical school.

I recently consolidated them at 2.875% for 30 years.

I have the option of adding my last Stafford loan ($38,500) onto my consolidation, but the new interest rate after July 1 (probably around 4.5%) will be weighted in, bringing my new consolidaton rate up to around 3.25%.

My calculation question:

What would be the total interest paid over 30 years if I consolidated all my Stafford loans, $154K, at 3.25%?

What would be the total interest paid over 30 years if I consolidated my previous Stafford loans, $115K, at 2.875% and then consolidated my last Stafford loan separately, $38500, at the new interest rate, let's say 4.5%?

All of this serves to answer the question if it's better to consolidate this final Stafford loan into my previous package or just consolidate it separately.

Thanks.

I would wait until a year from now and then look evaluate your options then. I'm guessing you lost your grace period on your current consoidated loans where as you would still have a grace period with any new loans.

The other thing to consider is that your consolidated loan rate is rounded up to the nearest 1/8%. Since you're current consolidated loan is at 2.875% the question is if your new loan would bump that up to 3.0%, 3.125%, or 3.25%. Either way, just wait 10-12 months and then look at it.

 

[kas23]

www.smartloan.com

Click on light-blue button on right stating "calculate your savings"

Have Fun

 

[mpp]

My calculation question:

What would be the total interest paid over 30 years if I consolidated all my Stafford loans, $154K, at 3.25%?

$87,278

What would be the total interest paid over 30 years if I consolidated my previous Stafford loans, $115K, at 2.875% and then consolidated my last Stafford loan separately, $38500, at the new interest rate, let's say 4.5%?

$88,492

 

[Etomidate]

$87,278


$88,492

Thanks. 👍

 

[jk5177]

Why not pay it off earlier, say in 15 years and save on your interest.

 

[mpp]

When the interest rate is as low as 2.875% you want to take as long as possible to pay off the loan. You will do better investing any extra money you would pay to the loan and easily earn greater than 3%.