I was just given my aid for 2005-2006. It has a rate of 3.25%. Is that the rate for the life of the loan, or for the year that percent is in effect? If there is the possibility of it raising each year? I am considering consolidating that amount now, before July 1st. Forgive my ignorance, this is all new to me! TIA!
If you consolidate, it should remain at that rate for the life of the loan. I consolidated my loans about four years ago and my rate has not changed.
Posted by JLH
If you consolidate, it should remain at that rate for the life of the loan. I consolidated my loans about four years ago and my rate has not changed.
There was no additional cost to consolidate. The only down side to the consolidation for me was that at the time I consolidated the rates were at 6%. I became locked in at that rate and interest rates dropped. For you 3.25% sounds great. Which lending company are you looking to consolidate with. My FI used salli mae (sp?) when he consolidated and said they were great to deal with.
If you are going to consolidate, you should consolidate before July 1, 2005 because the rates are going up from about 2.75% to over 5% on that date. Also remember to include that you are eligible for deferral for 6 months if you just graduated.
If you have a government sponsored loan- they consolidate the loan for you and basically a loan company buys the loan from the government- that's what I did...
Posted by nov04LIbride
I was just given my aid for 2005-2006. It has a rate of 3.25%. Is that the rate for the life of the loan, or for the year that percent is in effect? If there is the possibility of it raising each year? I am considering consolidating that amount now, before July 1st. Forgive my ignorance, this is all new to me! TIA!
