Re:More Than 40% of Student Borrowers Aren’t Making Payments
by iambateman on Wednesday April 06, 2016 @10:27PM
(#11444233)
If you don't mind, was refinancing a good move for you? What rate were you able to get it down to?
We're at 6.8% right now.
Re:More Than 40% of Student Borrowers Aren’t Making Payments
by srj on Thursday April 07, 2016 @07:21PM
(#11451494)
The consolidation loan rate was the weighted average of the loans consolidated, so it didn't offer any benefit beyond making the rate fixed. I think the rate ended up being ~5.5%.
Consolidation loans also offer a longer repayment timeframe I believe. In this way if you make the payment amount small but pay double, the extra will be entirely on the loan principal.
Back when I consolidated SoFi (and probably others) didn't exist. It might be worth comparing rates and terms with them as well.
Re:More Than 40% of Student Borrowers Aren’t Making Payments
by needcaffeine on Wednesday April 06, 2016 @10:55PM
(#11444364)
When I consolidated my loans, they became fixed at 6.8%. Meanwhile my wife was lazy and did nothing and then the great recession happened and her loans have been at 3% for years and years.
I consolidated but I know that some of mine were at 6.8% fixed thanks to this lovely change:
2006-07: Replacement of separate variable in-school/grace and repayment rates on the Stafford Loan with a single fixed rate of 6.8%. Replacement of variable interest rates on the PLUS Loan with a fixed rate of 8.5% (FFELP) and 7.9% (DL).