Private Student Loan Consolidation?
So I am going to be going to school to be a helicopter pilot and there are only two companies that I can get student loans through (Federal Loans are not available to this school). I was originally approved for 75k with Penn Security (Through TERI) with Prime+0 interest. TERI filed for Chapter 11 and will no longer fund my loan. Wells Fargo has given me an interest rate of 7.99+Prime on 25k per year. I will need this loan plus a loan from Sallie Mae for 20k as well. My question is can I consolidate after I’m done with school so that my interest rate isn’t as high, because that’s outrageous. I can’t afford to go to school with that high of an interest rate. Please only answer my question and don’t tell me to go to a different school or try another lender. I only have two lending options and I just moved 300 miles to go to this school because I was already approved with Penn.
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fgsdsu said,
March 13, 2010 @ 9:51 pm
I have the same problem, i don’t know if it will be worth it later
Pete W said,
March 13, 2010 @ 10:47 pm
Consolidation loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the term of the loan can be extended from 12 to 30 years. (10 years for less than $7,500; 12 years for $7,500 to $10,000; 15 years for $10,000 to $20,000; 20 years for $20,000 to $40,000; 25 years for $40,000 to $60,000; and 30 years for $60,000 and above.) The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid is increased.
In certain circumstances (for example, when one or more of the loans was being repaid in less than 10 years because of minimum payment requirements), a consolidation loan may decrease the monthly payment without extending the overall loan term beyond 10 years. In effect, the shorter-term loan is being extended to 10 years. The total amount of interest paid will increase unless you continue to make the same monthly payment as before, in which case the total amount of interest paid will decrease.
The interest rate on consolidation loans is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.
If a student consolidates their loans before they enter repayment, the interest rate used is the lower in-school interest rate. Thus, although the rounding up of the weighted average can potentially cost the student as much as 0.12%, a student who consolidates before entering repayment can save as much as 0.6%, a substantial net savings. (The in-school interest rate is 1.7% plus the 91-day treasury bill rate from the last auction in May. During repayment, the interest rate is the 91-day T-bill rate plus 2.3%.) This loophole has been confirmed by an excerpt from the Federal Register and direct correspondence with the US Department of Education. Additional details can be found in the interest rate loophole section.
Some graduate students have found it necessary to consolidate their educational loans when applying for a mortgage on a house.
To find out more about Student Loan Consolidation, check with below sites.
http://loan-house.we.bs/loanconsolidation.html
Prima said,
March 13, 2010 @ 11:32 pm
Visit here for more info..Hope help you..
http://student-loan-consolidationrebate.blogspot.com/