should i consolidate??

[Anonymous]

i have two student loans:

$6,500 at 6.550%

$2,500 at 5%

my payments are $82 and $50 ($34 of the $82 monthly payment goes interest - gross.)

is consolidating a good idea??

thanks!

[Guardian]

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@Anonymous wrote:

i have two student loans:

$6,500 at 6.550%

$2,500 at 5%

my payments are $82 and $50 ($34 of the $82 monthly payment goes interest - gross.)

is consolidating a good idea??

thanks!

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IMHO, don't consolidate, the amounts are too low to give you any significant benefit. I would recommend making larger payments toward principle to reduce the amount of interest you pay and keep it in good standing and pay it off as soon as financially feasable as most of them don't have pre-payment penalty. It would serve you better and without the addition of a new installment loan and the AAoA will remain more productive for you. Just my two cents. Good luck.

[Anonymous]

Are these the only loans you have?

Are they variable or fixed?

The 5% loan looks like a fixed rate Perkins...don't consolidate Perkins loans.

The 6.55% is probably a variable which will drop with the reset in July. At the low payments your making it seems you will paying for awhile ..like 6 years. If you are going to be paying over six years then consolidating this loan is probably a good idea. If you are consolidating DONT DO IT TILL THE RESET IN JULY!

[Anonymous]

Yes the 5% is a Perkins. And thanks for the info on the reset in July. 

I also have an auto loan, but that's it. No home/mortgage.  Why would this matter? 

[Guardian]

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@Anonymous wrote:

Yes the 5% is a Perkins. And thanks for the info on the reset in July. 

I also have an auto loan, but that's it. No home/mortgage.  Why would this matter? 

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If you had more student loans, then it might be worth it, that's why it matters. But I already assumed this is all you had and hence my advice. Not enough to be worth it and would do you better to pay it as is.

[Anonymous]

How does AAOA work for installment loans?  I understand not to close credit cards but all installment loans close when they are paid in full?

I have two student loans and have been aggressively paying them down so as to help my score.  I have one still in deferment that I have paid down 1/3......Maybe I am looking at it wrong.

colbymcolby

[Guardian]

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@Anonymous wrote:

How does AAOA work for installment loans?  I understand not to close credit cards but all installment loans close when they are paid in full?

I have two student loans and have been aggressively paying them down so as to help my score.  I have one still in deferment that I have paid down 1/3......Maybe I am looking at it wrong.

colbymcolby

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Yes but the date of which they were opened goes toward your AAoA, even when they are paid as long as they remain on your report.