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schrute
Posts: 91
Registered: ‎09-16-2012
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Re: Extended Repayment - Graduate - 2 year and 4 year - help!

If I pay now can I consolidate later? I'd like to pay it down but keep the 2.3% interest.

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laz98
Posts: 4,300
Registered: ‎09-06-2008
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Re: Extended Repayment - Graduate - 2 year and 4 year - help!


schrute wrote:

If I pay now can I consolidate later? I'd like to pay it down but keep the 2.3% interest.


Paying your loans down a bit has no effect on your ability to consolidate them later.  BUT, many people do lose their low interest rates when they consolidate, because if I'm not mistaken, they take the average of your APRs & that becomes your new APR for your consolidated loan.

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schrute
Posts: 91
Registered: ‎09-16-2012
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Re: Extended Repayment - Graduate - 2 year and 4 year - help!

How do you lose your APRs if you're locked in at a single number?

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laz98
Posts: 4,300
Registered: ‎09-06-2008
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Re: Extended Repayment - Graduate - 2 year and 4 year - help!


schrute wrote:

How do you lose your APRs if you're locked in at a single number?


Because they're not individual loans anymore once you consolidate; it's just one.  They're not going to just give you the lowest APR you had before.  Like I said, I may be  wrong, but I believe they take the average of whatever your APRs were before & that becomes your new APR.  If you are lucky enough to have all of your loans at the same APR, then I guess it wouldn't matter, but that's probably not the case for most people.  :smileyhappy:

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 716. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
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kjel
Posts: 431
Registered: ‎11-27-2012
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Re: Extended Repayment - Graduate - 2 year and 4 year - help!

The consolidation APR is a weighted average of the APRs on your existing loans. I had a range of 3.4% to 6.8% before consolidation and ended up with 5.6% as my interested rate.


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