topic Re: Private Loan help in Student Loans

Private Loan help

ineedcreditbad — Sat, 24 Oct 2009 17:42:48 GMT

Guys,

Need some advise here. I currently have a private loan around 27K with an interest rate of 3.5% + LIBOR which comes around 8%. Is there anyway for me to get this loan transferred to a fixed rate or consolidate this with my federal loans.

Currently loan is not in repayment.

Thanks

Re: Private Loan help

Anonymous — Sun, 25 Oct 2009 00:08:11 GMT

@ineedcreditbad wrote:
Guys,

Need some advise here. I currently have a private loan around 27K with an interest rate of 3.5% + LIBOR which comes around 8%. Is there anyway for me to get this loan transferred to a fixed rate or consolidate this with my federal loans.

Currently loan is not in repayment.

Thanks

Ed

I don't know of any way to accomplish either of those goals using education loan products currently available. Private loans can't be combined with federal loans (oh I wish they could as I currently pay 1.65% on my federal loans and anywhere from 4.5-8% on my private) and there are only a few companies consolidating private loans lats time I checked - most are no longer doing so.

Also I don't know of any fixed rate private education loans. Everything I've ever seen has been variable rate.

Re: Private Loan help

ineedcreditbad — Sun, 25 Oct 2009 18:57:24 GMT

Thanks for the info.

Another question though, I will be graduating in 2010 and then plan to start my Masters, should I consolidate all my federal loans once I graudate in 2010 or wait until I complete my Masters or it doesnt make any difference?

Thanks

Re: Private Loan help

Anonymous — Tue, 27 Oct 2009 01:42:15 GMT

If you're not going to take out any more federal loans I think now would be the best time because interest rates are so low. The caveat is once you consolidate those federal loans you can't add anymore loans to it. Also, be sure who ever you consolidate with will allow you to go back into forbearance or deferment after consolidation.

I consolidated with UHEAA (Utah Higher Education Assistance Authority) in 2005 just before starting residency. With auto payment my current fixed interest rate is 1.65%. That's free money!