Is it better to consolidate loans now that the fed has reduced the interest rates?
Posted in Consolidate Loans on 10/31/2011 05:58 pm by
Question by mrxalex319: Is it better to consolidate loans now that the fed has reduced the interest rates?
I have 3 private student loans from 3 different banks. Is it better to consolidate now that the fed dropped the rates. Im currently getting 7.45, 8.5, and 9.5. thanks
Best answer:
Answer by greentadpole
This current rate plop does not affect the interest rates of student loaned. The prime issued on July 1st is responsible for that.Depending on your credit score the rate can be from 7.25% to 13.75%. A co-signer may be necessitate and could reduce the interest by a 1/4 %.Keep in mind that individual loans have variable interest rates. To be honest, unless you are consolidating so you have one loan with one servicer, I would equitable set up automatic payments on the 3 loans until you absolutely need to merge. Once you consolidate, you tin not re-consolidate at a later time. Since your rate is variable either way, I’d keep the consolidation as an ace in the hole if you ever ask it to reduce your payment or get a better interest rate in the future.Hipe this helps(worked for Sallie Mae for many years)
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