Consolidate unsubsidized Stafford loan?

Parents Forum
1

<p>Bewildered here. I read the WSJ someone kindly posted, saying we should get our kids' loans consolidated soon because the Administration has passed a law making that a problem later on, and because rates are going to go up. Has anyone done this? </p>

<p>I am getting the impression, in my travels around the Net, that I can do this for my class of '08 kid but not for the '06 one. Is that true? Is the '06 kid out of luck here? What can we do for him?</p>

<p>Is there a reason to do this now as opposed to June? </p>

<p>Any concrete, logical advice would be much appreciated.</p>

2

<p>Anybody? I know it's Saturday night; you must all be out partying. ;)</p>

3

<p>Still trying here. Bump.</p>

4

<p>I consolidated the first two years of loans in 2005 before the interest rates when up. I'll not do it for this year since the rates are higher. I'll see at the end of his senior year what the rates are.</p>

5

<p>Thanks. Now, here's what I'm hearing: The WSJ is convinced the rates are only going up more. Also, somehow I am getting the idea from the Sallie Mae site that seniors are too late to consolidate. Or is it that they are better off consolidating after graduation, during their grace period? But if the interest rates are going up, isn't it bad to wait? </p>

<p>The info out there on this topic is not exactly user-friendly.</p>

<p>Here is the article I'm referencing: <a href="http://www.collegejournal.com/forms/printContent.asp?url=http://www.collegejournal.com/aidadmissions/financialissues/20060222-spors.html%5B/url%5D"&gt;http://www.collegejournal.com/forms/printContent.asp?url=http://www.collegejournal.com/aidadmissions/financialissues/20060222-spors.html&lt;/a&gt;&lt;/p>

6

<p>His first two years are already consolidated. I suspect that I'll want to keep the first two years as is since we'll not see those low rates again. So it appears to me that I have nothing to conolidate now.</p>

7

<p>Ah, our kids both have variable rate loans...</p>

8

<p>according to Sallie Mae

[quote]
** * Are you graduating after June 30, 2006?</p>

<p>If so, lock into today's historically low interest rates by consolidating
your loans before you graduate.**

[/quote]
</p>

9

<p>Yes, what I am wondering about is, should a senior (graduating in June '06) consolidate.</p>

10

<p>find out what deal you can get and then I would say yes.</p>

11

<p>Consolidate NOW. Come July 1, rates for Stafford will go up. The advertisements are correct. </p>

<p>We consolidated Stafford and PLUS last year and locked in 2.7 and 3.7 rates which will drop to 1.7 and 2.7 for the next 15 and 25 years repectively. and after 3 years of ontime payments. Your delay Will cost you Money. Contact your provider.</p>

<p>GWB Deficit Reduction Act of Feb 01, 06 will make your stafford at a fixed 6.8 and your PLUS at a fixed 8.5 and you lose the ability to consolidate until after graduation. Current rates are 4.5 and 5.3. </p>

<p>Got it?</p>

12

<p>I consolidated my loans and i'm locked in at a really low rate which will decrease even further once i've made a year or two of consecutive payments. I also get a discount on my rate for having it automatically withdrawn from my bank account. I believe my rate is something like 2.0 percent at this moment... but i'm not 100% sure. It will go down in a year or two.</p>

13

<p>Thank you! Will do.</p>