Rate cuts

[bailey39]

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Does anyone know if it should be possible to consolidate at a rate significantly lower than my 6.8%? Since I'm graduating this year, it looks like federal interest rates will be quite lower than the rate for Staffords by June. My understanding of this topic is pretty poor....

 

[GBFKicks]

So, how (if at all) will the rate cuts affect our financial aid/loans?

I heard that July will be a good time to consolidate loans, but that seems like an arbitrary time period considering what is currently going on at the Fed--so 1)Is it a good time to consolidate? (especially since many believe we should see more rate cuts) 2)How do we measure if it's worth it for us to consolidate?--especially since a good chunk of my loans are subsidized.

Thanks for the help

 

[Doctor Bagel]

I went ahead and merged these two threads because they're asking a very similar question. Do any financial aid pros know the answer to this question? My thought is that you're stuck with the fixed rate and can't go lower for loans from 2006 and onward, but I'm not 100% sure.

As for consolidating in June, I think it's usually to lock in a rate before rates get set at a higher rate. It takes a while for a consolidation to go through so you want to get in there early enough if rates will go up. Also, you usually lock in a lower rate if you consolidation during your 6 month grace period instead of waiting until repayment starts.

 

[mshheaddoc]

I went ahead and merged these two threads because they're asking a very similar question. Do any financial aid pros know the answer to this question? My thought is that you're stuck with the fixed rate and can't go lower for loans from 2006 and onward, but I'm not 100% sure.

Also, you usually lock in a lower rate if you consolidation during your 6 month grace period instead of waiting until repayment starts.

Yes these points are right. If you had loans from before 2006 you can get a blended rate, otherwise you're stuck with the 6.8 and might get rate deduction after x amount of payments on time. This also applies for the 6 month grace period consolidation referenced in the above quote too.

I'm wondering if things will change this July though ...