New loan rates are in 2.821% and 3.421%

[DrDigital]

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The 91-day/13-week Treasury bill rate of 1.121% was just set so our student loan consolidation rates will be going lower.

This time around the rate for those of us still in school, a grace period or deferment will be 2.821% (1.121%+1.7%). The rate for those of us in repayment will be 3.421% (1.121%+2.3%).

Also, lets start to look for the best place to consolidate our loans. Currently Sallimae offers a .25% discount for direct debit and a .5% for 48 months of on time payments for a suprisingly low 2.07% interest rate after 4 years of on time payments. Im sure there are others offering similar deals. I know last year one consolidator was offering a 1% discount after only 6 months of on time payments. Lets see if we can find the best deal. Keep them coming guys.....this is $$$$$$$$.

 

[painres]

Bump, thats some pretty good info for those of us with loans that havent consolidated yet. Thanks.

 

[DrQuinn]

Student Loan Rates Seen at Record Low

Reuters
Wednesday, May 28, 2003; 5:05 PM



By Mark Felsenthal

WASHINGTON (Reuters) - Interest rates for federally guaranteed student loans in the academic year 2003-2004 are expected to drop to the lowest level in the history of the program, student loan providers said on Wednesday.

Interest rates on the popular loan for students in college know as the Stafford loan will drop to 3.42 percent in the 2003-2004 academic year, said John Falb, treasurer for College Loan Corp., a student loan provider.

The Department of Education pegs federally guaranteed student loan rates to Treasury bill auctions at the end of May. At a Treasury Department auction on Wednesday, the investment rate for the 91-day bill was 1.12 percent.

Under law, the government sets student loan interest rates at 2.3 percentage points above that for the Stafford loan, student loan providers said.

An official at the education department said the government would make an announcement later in the week.

Last year, post-secondary school students took out $40 billion in new loans to fund their schooling, Falb said.

Lower rates will also help push down loan costs for many students who have already borrowed or are paying off current loans, because the loan rates are variable, Falb said.

Interest rates on loans that parents take to fund their children's higher education will fall to 4.22 percent from 4.86 percent, said Erin Korsvall, a spokeswoman for the nation's biggest student loan provider, Sallie Mae .

"Education has never been more affordable," she said.


From the Washington Post
Q, DO

 

[GeneralTso]

FYI

Studentloan.org offers a 0.75% reduction after 6 months of payments with an extra 0.25% for automatic debit once you consolidate with them.

Beats everything out there so avoid Sallie Mae 😡.

I guess these great rates are a consolation prize for this lousy crappy economy.

 

[Crusher]

I am just beginning my 4th year and am not totally sure how this works. Does this mean I am guarnteed these rates since they are in effect until next July 1. Not that it is likely, but could i still wait for next May 28 to see if they dropped lower without risking losing these current low rates by consolidating? Sorry if I am making no sense...just returned home from drug rep dinner with lots of free wine...

 

[Brewster]

Originally posted by Crusher
I am just beginning my 4th year and am not totally sure how this works. Does this mean I am guarnteed these rates since they are in effect until next July 1. Not that it is likely, but could i still wait for next May 28 to see if they dropped lower without risking losing these current low rates by consolidating? Sorry if I am making no sense...just returned home from drug rep dinner with lots of free wine...

You got it.

Around this time next year, they will announce the 2004-2005 Stafford interest rate which will take effect July 1, 2004. If it goes down again, you can wait and take advantage of the new lower rate. If it goes up, you have time to consolidate before the new rate takes effect. Either way you win.

 

[BlackPuma]

Originally posted by Brewster
You got it.

Around this time next year, they will announce the 2004-2005 Stafford interest rate which will take effect July 1, 2004. If it goes down again, you can wait and take advantage of the new lower rate. If it goes up, you have time to consolidate before the new rate takes effect. Either way you win.

sorry for sounding stupid...I am not at that stage of the game...can we consolidate loans after we finish our first year?????? I am in the process of hopefully finishing first year, can I lock in these rates while the market is hot? 😀

Danke