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tianapb725 asked:
Does anybody know how many times you can consolidate private student loans? Right now I have approx $26K in student loans consolidated with Sallie Mae at about 10% interest rate. I would like to get a better one, but have already consolidated. If I can only do it once, do loan companies actually lower the rate based on credit and payment history?
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Tags: 26k, Consolidate Loans, Consolidation Loans, Interest Rate, Loan Companies, Payment History, Private Loans, Private Student Loans, Sallie Mae
August 18th, 2008 at 2:45 pm
It seems to me the purpose of a consolidation loan is to combine several loans into one… but if you only have one loan to begin with, you wouldn’t be able to consolidate them.. suppose it wouldn’t hurt to ask around.
Some companies DO lower the interest rate based on payment history. Mine were federal loans that were sold to Sallie Mae when i graduated. When I signed up for their Auto Draft payment feature they lowered my interest rate. I also qualified for a program GREAT REWARDS or something, that reduced my rate again after I had made many payments on time.
Granted I never consolidated my loans, (I don’t understand the whole point of it personally) because the interest rates are usually higher than the federal rates. And you “reset” the time you’ve been paying on them back even farther. But I suppose if you have private loans this might be in the best interest for your wallet. Just remember, consolidated loans don’t qualify for any loan forgiveness programs that federal loans qualify for.
Don’t make the mistake and change it into a non-student loan, loan. (I hope that makes sense) because then you wouldn’t even be able to deduct the interest on your taxes.
August 20th, 2008 at 6:19 am
There is a bunch of useful information like articles,pictures,videos here to help answer your quetion.http://studentloan.online-helpers.info/consolidation-debt-loan-student.html
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