Can you negotiate interest rate with a stud. loan company after principal is paid?
I consolidated stud. loans with Nelnet four years ago. I have reduced my interest rate from 9% before consolidation to 7% after consolidation. These loans are so old (mid 1990’s) that I am close to having paid the original principals before consolidation. Do you think once that the original principals are paid I have some negotiation leverage to reduce interest rate further. I have never been in default. Also, I am a public school teacher at a disadvantaged school. However, I do not qualify for any teacher forgiveness program due to the age of the original loans.
Any suggestions?
Popularity: 1% [?]
Permalink for Can you negotiate interest rate with a stud. loan company after principal is paid?
Gobbler said,
May 6, 2010 @ 4:14 pm
The fact that you have made payments equal to the original principal may seem an important landmark to you, but the loan companies could care less. However, if your credit rating has improved over the years, you may be able to negotiate a lower rate. Also, interest rates are lower now that they were in the 90’s. Remember that your only negotiating ploy is to threaten to go elsewhere if they refuse to give you a better deal. So look around to see if another company will offer you a re-consolidation.
There are a plethora of government programs out there and I don’t know if you qualify for any of these.