Refinancing Student Loans? | TigerDroppings.com

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nikki6
New Orleans Saints Fan
Dallas
Member since Jul 2011
1782 posts

Refinancing Student Loans?


My GF has student loan debt of about $11k. I think it's through Sallie Mae, but her interest rate is something like 6%. I had some student loan debt back in the early 2000's and I was also with Sallie Mae, but my interest rate was something ridiculous like 1.3%

Can someone refinance their student loan debt and try to get the low interest rates right now? Just curious, as lower interest would really help.








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MSMHater
LSU Fan
Houston
Member since Oct 2008
11785 posts

re: Refinancing Student Loans?


I wish.

Most fed stafford loans now are 6.5 +/- .25. the federal direct program gives you the option to consolidate all of your remianing "private" loans, but at >6% in most cases.

Can't balance transfer them either.






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nikki6
New Orleans Saints Fan
Dallas
Member since Jul 2011
1782 posts

re: Refinancing Student Loans?


Ok, damn that sucks. I wonder why student loan rates are so high when interest rates are so low?





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DontTazeMeBro
Tennessee Fan
Gatlinburg, TN
Member since Oct 2011
135 posts

re: Refinancing Student Loans?


I work in the student loan business so I might be able to help.

If your loans are federal loans (Stafford, GradPlus, PLUS) you can consolidate them but only through the DOE's Direct Consolidation Program. Your new intrest rate on your consolidated loan will be the weighted average of the interest rates on the loans being consolidated (rounded to the nearest higher 1/8 of a percent).

Unfortunatly the way federal loans are stuctured, there is no way to take advantage of the present market rates. I'd call your local bank or credit union to see what they may be able to offer.






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MSMHater
LSU Fan
Houston
Member since Oct 2008
11785 posts

re: Refinancing Student Loans?


quote:

I work in the student loan business so I might be able to help. If your loans are federal loans (Stafford, GradPlus, PLUS) you can consolidate them but only through the DOE's Direct Consolidation Program. Your new intrest rate on your consolidated loan will be the weighted average of the interest rates on the loans being consolidated (rounded to the nearest higher 1/8 of a percent).


Then please tell me why, despite my loans being "consolidated", that my online account (Through Great Lakes) shows my "consolidated" loan as 3 seperate loans...with seperate due dates, payments, and interest rates. I have a 6.7%, a 6.25%, and a 3.75% (smallest one ). Mine did not consolidate to a weighted average APR.

Is it b/c they are stafford sub VS stafford unsub Vs something else?



This post was edited on 11/20 at 11:24 am


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DontTazeMeBro
Tennessee Fan
Gatlinburg, TN
Member since Oct 2011
135 posts

re: Refinancing Student Loans?


My earlier post was referring to a new consolidation. But there's a number or things that can affect the interest rates on past consolidation... So I can't be sure about your particular situation. Prior to July 1, 2006, all federal student loans had variable interest rates. So the date of when you took out your original loans and the date of your consolidation matters. Also, consolidations could previously be completed through private entities (Banks, Educational lenders) so you saw lower interest rates offered to persuade students to consolidate with them. I've seen interest rates on consolidation loans with our company ranging anywhere from 8.5%-1.39%.


This post was edited on 11/20 at 11:58 am


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brewhan davey
USA Fan
Audubon Place
Member since Sep 2010
25459 posts

re: Refinancing Student Loans?


Yeah, I have an unsubsidized Stafford loan that is at 6.8





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