Loan consolidation and Federal Perkins Loan

[Chisel]

Just curious if anyone knows what kind of an effect consolidating Stafford Loans and Perkins loans together will have on the interest rate?

I spoke with someone at Graduate Leverage who told me that I can include my Perkins Loans in the Consolidation.

Does anyone know of any advantages or disadvantages of consolidating them together?

BTW, I'm still in school and will be deferring until June 2006.

Thanks,

Chisel
PCOM MS IV

---

Members don't see this ad.

 

[mpp]

If you are still in school, you should no consolidate your Perkins Loans. For the time being (while in school) they are interest free. Once you consolidate, they will accrue interest.

The Perkins loan rate is 5%. Take the weighted average of your loans to determine the consolidated rate.

 

[tlew12778]

Advantage - one monthly payment instead of 2

Disadvantage - you weighted interest rate will probably increase. Mine went from 3.74% before I included my perkins in my consolidation to 3.75% after. I did it just to make one payment a month.

 

[GeneGoddess]

GraduateLeverage/AES is offering a "perk" where they calculate your Perkins interest at the prevailing Stafford rate (for me, it's 2.875%). They don't "reduce" your Perkins interest, they "credit" the extra percent off.