This is the deal Graduate Leverage gave me on a 25yr. payment plan for $31,500 in student loans. My payments came out to only $173 a month. Is this as good a deal as I am going to get on consolidation? (1% is taken off the interest rate after 17 timely payments with a .25% deduction taken off for automatic withdrawal )
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- I just graduated and I am trying to consolidate my student loans. Right now, they are with two different comapanies which offered me a 7.14% and 7.25% interest rate respectively. I called another company who had sent me literature, and they offered a 6.125% rate for the first 36 on time payments, then it will drop to 5.875% after that. I thought this was a good deal, but people keep telling me that it is an awfully high interest rate on a student loan. Does anyone know if a lower one can be found anywhere, and if so with what company? Is this about the best deal I will be able to get?
- I have to start paying back my student loans soon. I realized that the payments are going to be OUTRAGEOUS. I was wondering if anyone knew of any good consolidation companies? Or any ideas for lowering a monthly payment?
- I received a letter stating my loan application had been approved. The funds had been dispursed to this creditor. I have an application in hand from another source with the same creditor but a lower interest. I NEVER filled out an application. I did fill out something online a while back that was supposed to help find someone to help me payback my loan …. not a loan application. Is this legal? What are my options? I’m not even sure I want to consolidate because my interest right now is lower than the consolidation rate and it is making me pay 10,000 in interest. The loan amounts from this one company that says they already dispursed the amount is almost 500 different than what I owe … like there are some fees associated …. that I am not aware of. Aren’t I supposed to see everything hard copy to review it first before a loan application can be processed? Such as fees and interest rate …. etc?
- Does anybody know how many times you can consolidate private student loans? Right now I have approx $26K in student loans consolidated with Sallie Mae at about 10% interest rate. I would like to get a better one, but have already consolidated. If I can only do it once, do loan companies actually lower the rate based on credit and payment history?
- Recently, I consolidated my student loans (undergrad, grad school loans). After I received the final break down, it appears that I will be paying double over the 25 year pay back period even with a 6% interest rate. This is ludicrous and certainly NOT what the agreement stated. I need to find a better company with better rates and soon. Any suggestions – help!!! This company is really not the best and I plan to change soon. Send links and your advice on how they have helped you!
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If you are consolidating your federal student loans, the interest rate is mandated by federal law. So, even if you go to other consolidation companies they will give you the same interest rate. The difference might be the 1.25% interest rate reduction they are offering. Others might offer more or less…you’d just have to search around and check it out. In my experience the .25% reduction is pretty standard…where it’ll differ is the reduction for on-time payments. Some might do more, some might do less, after additional months or less months.
By law, lenders are required to use the same interest rate formula for Consolidation Loans. However, many lenders offer interest-rate reductions for paying on time or via direct debit. It is important to read the fine print and understand how you become qualified for or disqualified for a lender’s borrower benefits programs. Beyond savings, you should consider customer service, flexible repayment options, online account access and applications, reputation and industry experience when selecting a lender.
Keep in mind that extending your payment term to 25yrs means you will pay more interest over the life of the loan (just like a mortgage or credit card), so as soon as you’re able to, it’s smart to pay more than the minimum monthly payment. And be sure to get your consolidation application in before midnight on Saturday, as the interest rate will rise 8 basis points on July 1.
The two main things that you will come across when thinking about what Student Loan Company to go with are Borrower Benefits and quality of Customer Service. Student Loan Consolidation companies do NOT have the ability to undercut one another and lower a borrower’s interest rate due to the fact that this a FREE federal program, regulated by the federal government. The Interest Rate you will receive is regulated by the Federal Government and based on the T-bill.
One thing that separates companies from one another are Borrower Benefits, different companies offer different Borrower Benefits. There are two main Borrower Benefits that you will encounter; .25% reduction for using Automatic Debit, and 1% reduction after 36 ontime payments. I would suggest inquiring with the company as to what their Borrower Benefits are when it comes to Student Loan Consolidation.
The interest rate you receive is based on a weighted average of your individual loan interest rates with the larger loan amount interest rate getting more weight than the lower loan amount interest rate.
Keep in mind it would be in your best interest you go with a company who offers the FFELP Consolidation Loan Program. If you were to consolidate your Federal Student Loan debt with you other debt than you would lose all of your Federal Benefits that come along with your Federal Student Loans. For more information on Borrower Benefits and the FFELP Consolidation Loan Program, please visit the source below.
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