July 1 hold for consolodation of .....

[Amy B]

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I have undergrad loans and just tried to consolodate them through Direct Loans, who I have been paying my loans through since graduation. (http://loanconsolidation.ed.gov/ )and they told me they are placing all loan consolodation applications on an interest hold till after July 1st when interest rates are supposed to change. I heard a speaker talking about the rates this weekend and she said rates were going to jump up, whereas the loan people said they are going to go down.

Anyway she said they will hold applications and if rates go down they will give you the lower rate and if they go up they will give you the rate you had the day you filled out the application to defer. Don't know if I believe them but I am going to hope she knows what she is talking about.

 

[Amy B]

Here is the info from their web page.

""""""Attention New Applicants:

Initial interest rates on Direct Consolidation student loans will change on July 1, 2004. Any applications electronically or otherwise postmarked after Midnight June 30, 2004 will be Consolidated at that new Annual Rate.

Consolidation Loan Applications Received after May 6, 2004

Applications that are received after May 6, 2004 will automatically be put on hold pending the time that the new rate is determined. Once the new rate is determined we will continue processing your application to assure you the lower rate. In other words, if interest rates decrease we will continue to hold your application until the effective date July 1, 2004 so you can take advantage of the new lower rate. If interest rates increase you need take no further action. We will Book and Fund your loan as soon as possible so you can take advantage of the lower interest rate before the increase effective date of July 1, 2004. Either way you will get the lower rate so send in your application today.

Exception for Loan Booking and Funding prior to July 1, 2004

If your circumstances do not allow you to wait and you would like us to process your application as soon as possible at the current interest rates please sign and date the Request to Release Hold letter and send it in with your application. Please understand this means that we will process your consolidation as soon as possible using the current interest rates prior to the July 1, 2004 interest rate adjustment and this rate will be fixed for the life of the loan.

 

[IsoGirl2707]

Does anyone know when the consolidation companies find out what the new T-bill rates are going to be? I know they officially come out on July 1st but most of the lenders I have spoken with say that they will know by the end of May. Does anyone know the exact date in May or June?

Thanks