Special Direct Consolidation Loans

[Twitch]

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New loan consolidation program courtesy obama's announcement yesterday on cnn. Kicks in Jan 2012. Additional interest rate rebate 0.25% + 0.25% for kwik pay.

Official:
http://studentaid.ed.gov/PORTALSWebApp/students/english/specialconsolidation.jsp

Missing a key aspect - interest rate based on what? Ofcourse the 800 # folks know nothing more.

 

[Twitch]

WSJ Article

 

[plauto]

Last time Obama & Co touched student loans, we were forced to pay 2% more per loan taken out in origination and default fees, which were previously waived by most private lenders and they did away with subsidized Stafford loans for graduate studentd. I do not expect this to be any better.
Anything they touch turns into you know what...

 

[Twitch]

Sub stafford is still available. Several schools have transitioned to direct loans for staffords, though.

If you follow the money trail, we (as a society) still (over)paid for fees to private lenders to lend students money that they didn't even bear the risk for. And they turned around and gave us a "rebate".

 

[plauto]

Sub stafford is still available. Several schools have transitioned to direct loans for staffords, though.

If you follow the money trail, we (as a society) still (over)paid for fees to private lenders to lend students money that they didn't even bear the risk for. And they turned around and gave us a "rebate".

I think you missed some recent events. Subs. Stafford loans are gone for graduate students. All schools are now using direct loans.

As for your last point...we are paying 2% more. That is the bottom line. Why and how, it doesn't really matter. The interest the govt. charges us is outrageous anyway. I wish they stayed the hell out of this.

 

[dpmd]

Typically consolidation loans rates are based on the weighted average of the loans you include in it. Seems they would just do that and subtract the 0.5%.

 

[Dirt]

I think you missed some recent events. Subs. Stafford loans are gone for graduate students. All schools are now using direct loans.

I definitely get direct subsidized stafford loans...

 

[DrBowtie]

I definitely get direct subsidized stafford loans...

This is the last year.

 

[Dirt]

This is the last year.

Oh, lucky me I guess.