Student loans (interest, consolidation) question... | FerrariChat

Student loans (interest, consolidation) question...

Discussion in 'Other Off Topic Forum' started by KevinW, Feb 18, 2004.

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  1. KevinW

    KevinW Karting

    Nov 4, 2003
    107
    Phoenix, AZ
    Full Name:
    Kevin
    #1 KevinW, Feb 18, 2004
    I have about $10,000 in student loans and my wife about $6,500. We both go through different companies and I'm curious:

    1. Can we consolidate our loans TOGETHER and have just one payment?
    2. My interest on my loan is like 3.25% and hers is a whopping 8.25%, how can I get a FIXED interest rate?
    3. Anyone have any suggestions on companies to do this with? I like to use the internet to make my payments (I think most offer this...)

    I really want to simplify this whole process and never have to deal with doing this again (especially now that interest rates are as low as they are).

    Any help would be greatly appreciated...

    Kevin
     
  2. future328driver

    future328driver Formula 3

    Dec 10, 2001
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    #2 future328driver, Feb 18, 2004
    Try Sallie Mae for your wife's loan. I locked in 3.25% a whiel back and the rates should still be low. As far as consolidating together, I doubt if that can happen, but again, you might contact Sallie Mae.
     
  3. formula1joe

    formula1joe Formula Junior

    Nov 3, 2003
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    Atlanta, GA
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    Joe Bennett
    #3 formula1joe, Feb 18, 2004
    You have some questions though to see of this is a good fit to for locking or consolidating the loans.

    On the consolidation, do you want to pay forab you wife's loan if she passes away? Or visa versa. I have not consolidated my loan's with my wife for that very reason. Disturbing to think about, but it plays into your future.

    How long have you been paying on your loans? If more then 3-4 years, forget about locking in a rate. Just ride it out. The loans are ammortized in such a way that all the interest in mostly up front and most (all) companies will not let you refinance them for less then 10 years. Yes, you could more every month, but you usually do not come out ahead. I have been paying on mine for 6 years now and paying mostly principal now. It makes no sense in my situation to lock in and refinance because I would basically be starting over but they keep sending me the letters to do so.

    If you just got out of school, I would lock in the rate. Rates can't go much lower, although I would love for them to.

    Just my 2 cents.
     
  4. KevinW

    KevinW Karting

    Nov 4, 2003
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    Kevin
    #4 KevinW, Feb 18, 2004
    My wife's loan is already through Sallie Mae (I actually meant to say this in my original post but forgot). She called them yesterday and they said they can't refinance her loan and get it any lower because she already consolidated??? Sounds like a bunch of crap to me.

    Also, in reference to formula1joe's reply: We've both been out of school since 2000 so maybe we should just continue paying the rate we are locked in at so we don't start over again. I guess the smart thing would be to put more toward her loan since the interest rate is higher and pay it off before mine since mine is a lower interest rate.

    Thanks for the replies.
     
  5. formula1joe

    formula1joe Formula Junior

    Nov 3, 2003
    436
    Atlanta, GA
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    Joe Bennett
    #5 formula1joe, Feb 18, 2004
    There is actually a rule on just one refi to lock in the rate. So if your wife's loan has already been done, it actually can not be done again. Sorry.

    Since you have been paying since 200, you are really on the border between doing yours or not. Chances are rates are not going to sky rocket the next couple of years (don't hold me to that one) so I would not touch the loans. If you can find someone though who will do the loan for less then 10 years, say maybe at 5, I would probably jump on that in your case.
     
  6. future328driver

    future328driver Formula 3

    Dec 10, 2001
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    Ken Thomas
    #6 future328driver, Feb 18, 2004
    I would challenge Sallie Mae on the refinance. If your wife has Stafford Loans, the highest allowable student loan rate is 8.25%. Since that is what your wife is paying, why would there be an existing cosolidation since the rate will never go higher than 8.25%?
     
  7. KevinW

    KevinW Karting

    Nov 4, 2003
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    Kevin
    #7 KevinW, Feb 18, 2004
    Because she already DID consolidate them right after graduation. And according to Sallie Mae you cannot reconsolidate after doing it once (like formula1joe stated).

    Like I said before, her is only $6,500...I will start adding more towards the principal and try to pay hers off in the next 3-5 years...that's all.
     
  8. David_S

    David_S F1 World Champ
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    Nov 1, 2003
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    David S.
    #8 David_S, Feb 18, 2004
    If they won't allow a re-fi, why don't you pay it off with a home equity loan or the equivalent? 4 to 4.5% sure beats 8.25% :)
     
  9. abarre

    abarre Formula Junior

    Jul 9, 2003
    295
    #9 abarre, Feb 18, 2004
    Check out www.edfinancial.com

    They are the nation's largest nonprofit student loan lender. They have consolidation services that are very competitive.
     

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