Consolidating Now v. Waiting
April 2nd, 2008 at 02:58am Under Student Loans
If you are looking to compact your Federal loans now..you may desire to devery bit ofy a few months….but only provided you acquire loans from ad ahead July 1, 2006. Here’s why…
Stafford loans taken out be alivefore July 1, 2006 are fickle cost loans (assuming they have never been consolidated)…and these variable rate loans are reset every July 1. This July 1st the rate may be decreasing, in which instance you would want to wait to consolidate until this rate convert occurs. The rate should be announced sometime in June…so you prerogative learn before it happens.
If you honourable graduated and all of your Stafford loans were borrowed after July 1, 2006, you can consolidate whenever you would like, as your rate will every time be 6.8%. This is because the rate changed from a variable rate to a fixed rate on July 1, 2006. All of your loans are already fixed in at 6.8%…consolidating them will not change the rate, but it can lower your monthly payments.
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