rates

[Anonymous]

OTF posted this in another thread as a answer, I did not want to high jack that thread so I,ll start a new one.

((I belive there is a period you can change you rmind about consolidatind, If so do it. You are locking in rates that are substantially higher than you could get when the rates reset in July 2009.

As of 03-09-2009, the current projections for the 2009-2010 variable interest rates are:

 
• Projected Stafford Loan (In-School/Grace Period): 1.94%
• Projected Stafford Loan (Repayment Period): 2.54%
• Projected PLUS Loan: 3.34%

These projections would yield the following consolidation loan interest rates:  

Projected Stafford Loan Consolidation (In-School/Grace Period): 2.00%

Projected Stafford Loan Consolidation (Repayment Period): 2.62%

Project PLUS Loan Consolidation: 3.38% ))

Could you explain this some more?

My wife has 9 Stafford loans, 3 of them went to 4.2% last year the other 6 are at 6.8%.

Do I contact sallie mae about consolidating them ???

[Anonymous]

these are the loans she has now, she is going back to school in april for her masters.

which will of course mean more loans ^%&*$*&&$*$.

she has 1 other loan with nelnet. interest rate unknown.  i have no ideal as to the best course of action to take for these.

Stafford-UNSUB/
SALLIE MAE TRUST - LSC/FL   Repayment 07/06/2005 $2,956.40   4.21% Payment history         Stafford-UNSUB/
SALLIE MAE TRUST - LSC/FL   Repayment 09/20/2005 $4,927.75   4.21% Payment history         Stafford-UNSUB/
SALLIE MAE TRUST - LSC/FL   Repayment 03/28/2006 $3,221.61   4.21% Payment history         Stafford-UNSUB/
SALLIE MAE TRUST - LSC/FL   Repayment 12/12/2006 $4,139.59   6.8% Payment history         Stafford-UNSUB/
SALLIE MAE TRUST - LSC/FL   Repayment 01/03/2007 $2,781.62   6.8% Payment history         Stafford-UNSUB/
SALLIE MAE TRUST - LSC/FL   Repayment 04/17/2007 $2,225.18   6.8% Payment history         Stafford-UNSUB/
BANK OF AMERICA, N.A.   Repayment 10/10/2007 $2,865.54   6.8% Payment history         Stafford-SUB/
BANK OF AMERICA, N.A.   Repayment 10/10/2007 $5,500.00   6.8% Payment history         Stafford-UNSUB/
RBS CITIZENS, NA DBA CHARTER ONE   Repayment 08/05/2008 $4,504.03   6.8% Payment history

Message Edited by ezover on 03-15-2009 11:50 AM

[Anonymous]

My personal bias is to consolidate utilizing the Direct Federal Loan on the Depart Of Education website. Dealing with the Dept of ED servicing your loans is beneficial in that they are more lenient in forbearnces or deferments. You can do forbearances online and get a reply within 2 days by email. They don't make you account for every dime to get a forbearance. I consolidated 200K worth of med school loans back in 2006 when rates were low at 3.75% which was pretty good. The rates in July after reset will be even lower than what I got.

Going threw the Dept of Ed calculator if you consolidated based on the $ amounts listed and rates as of  July 1, 2008 to June 30th 2009 you would get  6% fixed rate on the $33,122. The 6.8% hurt b/c it's a weighted average of the loans.

It will be better after the reset b/c the 4.21% variable loans will drop to 2.54 assuming rate data as of 3/13/09 holds til lthe reset.

The 6.8% loans are those fixed rate Staffords?

 Hopefully not b/c the rate reductions won't help her with those loans. The overrall consolidation rate will be lower b/c the reduction in the 4.21% to 2.54% but the 6.8% still stay there. There was changes as of 7/2006 that Staffords became fixed. From now on they are still fixed at what ever rate you take them at, but legislation was passed to lower the rates down slowly year by year and to 3.45% by 2012. Borrowers in 2006-2007 got 6.8% and this year it's 6%, next year 5.6%. You're at the mercy of whenever you take it out the loan and it's fixed for the life of the loan.

[Anonymous]

Thank you for the reply. Yes the 6.8s are fixed, I'll have to go to the DOE website and take a look around.