interest rates are down!

[nimboo]

the interest rate for 2004 is down from 2.82% to 2.77%! This means that we don't have to consolidate until the grace period expires!

yay!

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[Olanzapine]

Where'd you hear this? I just checked the newswebsites but didn't see any info on this. I guess that this is good news, but I was kind of hoping to get all this paperwork out of the way now. Do we lose our grace period as soon as we consolidate?

 

[nimboo]

our school just informed us. you can actually still get the paperwork out of the way now (at least for sallie mae). just let them know that you want to consolidate once your grace period ends.

 

[Olanzapine]

Your school has an insider track. I'd reccomend buying some stocks, but I think that it'd be illegal for you to do so with this insider info. I don't know anything about those pesky SEC laws though.

 

[Jim Picotte]

http://wwws.publicdebt.treas.gov/AI/OFBills

The auction was today for sale on Thursday and they use this number to determine the rate.

Round the 91 day T-bill rate for 5/27/04 of 1.066 to 1.07 and add 1.7 percent and you get 2.77% for the new interest rate (if your in grace period/deferment/school and after 1998).

This is now official and the new rates have dropped for next year even though it was barely a drop. You can pretty much be assured that next year they will certainly rise.

 

[EarlyEditionDude]

Jim,

Where did you get the 1.7% from in your equation?

 

[Jim Picotte]

That's the equation they use to calculate interest rates. For loans after 1998, you add 1.7 to the 91 day T-bill auction from last auction in May for grace/deferment/in school and 2.3 to that number if you're out of school/grace/not in deferment.

Here's a news story about it finally.

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=5239426

 

[madcadaver]

For anyone interested here is the message regarding new rates from the financial aid folks at my school:

June 2004 Graduates:

It was officially announced late yesterday that the 2004/05 student loan
interest rate will again fall to new lows on July 1. The new rates are as
follows:

* Federal Stafford/Direct Loans disbursed
after 7/1/98 = 2.77% in-school, in-grace, in-deferment
after 7/1/95 = 3.57% in-school, in-grace, in-deferment
after 7/1/94 = 4.17% in-school, in-grace, in-deferment
before 6/30/94 - check with your lender
(the rate is .6% higher when the loan is in repayment)
* Federal Consolidation in-school and grace period rates remain at
2.88% (rates are taken at the in-school amount rounded to the nearest 1/8th
of a percent)

So, if you haven't already consolidated, then you will want to wait towards
the end of your grace period before you do consolidate. Plan to have your
paperwork completed and to the lender by Thanksgiving. Your 6-month grace
period ends mid-December with repayment beginning in January. If you
complete the paperwork now, lenders will hold onto your paperwork and not
put it through until after July 1. If they put the paperwork through after
July 1, you will lose your 6-month grace. So, it's best to complete the
paperwork later.

Good luck!

Financial Aid Office

 

[sixteenstones]

What do we do if we are in the class of 2005? Can we still consolidate at this low rate when we graduate in May of 2005? Should we consolidate all of our federal loans now while in the last year of school.

Thanks.

 

[mpp]

This new rate will be the rate until June 30, 2005. Just consolidate before then and you'll get this rate.

 

[sixteenstones]

can I also consolidate my private loans too under this low interest rate?

Thanks

 

[mpp]

This rate is for new Stafford loans, not necessarily the consolidation rate for all consolidations. The interest rate for consolidation loans is the weighted average of all the loans you are consolidating (if they are all Stafford loans then the rate will be this new rate). Each consolidating company will have a different way to treat private loans since the terms for these are so different.

 

[Mirror Form]

As a '05 graduate, i was really worried that the rates were going to sky-rocket. This is great news!!!!!!!!!!!!

 

[normalforce]

should the federal loans be consolidated now while still in school, or is it ok to wait until May when we graduate. I ask because the gov't is trying to pass a law of some kind to raise the rate. Is it best just to do it now. Will that effect the deferrment period.