I need advice!!!!

[loveumms]

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I've tried to read about consolidation and student debt and still can't figure out what I should do.

I have all my loans with Sallie Mae. I consolidated last year my first three years of loans at 4.75% and am planning on consolidating my last year so I can lock in the 6.54% so that I don't have a variable interest rate on that loan.

I also asked graduate leverage if they could give me a better deal and they are offering to consolidate all my loans - keeping my first three years at 4.75% and then after 30 monthly on time payments they are going to knock a point off that loan. But, here is what confuses me - they also are offering to knock down my 6.54% consolidation to 3.75% too. Can they do this? Also, if I consolidate all the loans together, don't you have to consolidate at the current interest rate - causing all my loans to be at the 6.54%??? I'm really confused!

Thanks

 

[blanche]

I've tried to read about consolidation and student debt and still can't figure out what I should do.

I have all my loans with Sallie Mae. I consolidated last year my first three years of loans at 4.75% and am planning on consolidating my last year so I can lock in the 6.54% so that I don't have a variable interest rate on that loan.

I also asked graduate leverage if they could give me a better deal and they are offering to consolidate all my loans - keeping my first three years at 4.75% and then after 30 monthly on time payments they are going to knock a point off that loan. But, here is what confuses me - they also are offering to knock down my 6.54% consolidation to 3.75% too. Can they do this? Also, if I consolidate all the loans together, don't you have to consolidate at the current interest rate - causing all my loans to be at the 6.54%??? I'm really confused!

Thanks

usually when you consolidate, they will do a weighted average (x years at 3% + 1 year at 6% takes you closer to 3, not 6)

that being said, i'm in a similar situation as you so curious as to how you lock in 6.54% for you last year loan, is it a fixed 6.8% like 2006-2007 staffords were?

someone from GL just called me last night and said something similar, they could maybe bring all my loans closer to 4. i'd already decided that i want to wait a bit before reconsolidating, but i'm going to send on my info to them to see what they offer.

 

[HMS2007]

I used Graduate Leverage and they gave me a great deal. They were able to take this year’s loans and bring them down to my consolidation rate from last year so all my loans are now at 4.75%. 🙂 I spoke with an advisor last week and they answered my questions and I was pleased with what they are able to do for me. They told me that they do collective bargaining on behalf of students to get the best rates. I spoke with a few friends who used them in the past and they have been very pleased with their service and that when you call them someone actually answers the phone to talk with you. My sister used them for taking Stafford loans this past year and they gave her a 1% discount right away so her Stafford loans are at 5.8% instead of 6.8%.

To answer your other questions, weighted rate is used when consolidating. An example they gave me on the phone is that if you consolidate $25,000 at 4% and $25,000 at 5%, the weighted rate would be 4.5%. Also, if you consolidate your 6.54% variable loans they will not go to 6.8%. But Graduate Leverage can help you get a better deal and give you a discount on your rate. You should give them a call.

 

[okbye]

The weighted average of your loans is a federally regulated calculation, no matter who you call your base interest rate will be the same. No company will be able to get you a better base rate. The ONLY difference between consolidation companies is the repayment incentives they offer and the level of customer service.

For Blanche - your 6.54% variable rate loan will go up to 7.14% (variable) after your 6 month grace period is up. You can consolidate this loan separately at a fixed rate of 6.625% if you do it before the grace period is up if you don't want to consolidate everything right now.

 

[johnstoner]

expanding on okbye's comment, the stafford loan is based on the last of may's 91 day T bill plus 1.7 percent. If you wait past the 6 month grace..then its T bill plus 2.3 so thus it makes sense to consolidate before this occurs.

 

[okbye]

^True, but it's already been announced so that's how we know what the new rates will be.

 

[Slippermen]

I too, had an offer regarding the notion of multiple consolidations and asked the Department of Education about it. They seemed awfully skeptical about it and stated that some of the items in the offer may be prohibited

Check out my new thread on Kennedy's report regarding inducements. Interesting list of companies on there.

 

[SparkyTremont]

Something to check out...
http://www.student-loans101.com/articles/considerations-before-consolidating-1.htm

hope it helps