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Car Junkie
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3,390 Posts
Got questions? I've got 'em.
 

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Car Junkie
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3,390 Posts
All of my student loans are government loans. When you consolidate them, the interest rate will be a weighted average of all the interest rates on your individual disbursements. For example, if you have one loan for $4000 at 10%, and another for $1000 at 20%, your $5000 consolidated loan would have a 12% interest rate. You may qualify for discounts depending on the terms of the loan.

The interest rate will be fixed for the loan term, as opposed to most original loans which are variable and change every July 1.

In general government loans are a good deal. You can get either subsidized or unsubsidized loans, but typically you get the subsidizeed ones first. Subsidized loans do not accrue interest while you are in school, and the first payment is not due until six months following your separation date (graduation). Or is that unsubsidized? Dang, I can't remember. I worked for a while on a Dept. of Education Direct Loans project, so I have a little bit of knowledge on loans that I picked up while I was there.

FWIW, I plan to consolidate my and my wife's loans sometime this year. The interest rates (as low as 3.65%) are too good to lose next year.
 

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Enthusiast
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235 Posts
Jetfire said:
FWIW, I plan to consolidate my and my wife's loans sometime this year. The interest rates (as low as 3.65%) are too good to lose next year.
Jetfire, where are you getting this 3.65% rate? It's a fixed rate? I'd like to consolidate my student loans. They are both stafford loans through AFSA. They are both on variable around 5-6% right now. Can you give me more info on the rate you had mentioned? It would be MUCH appreciated!
 
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