Home › Forums › Financial Markets/Economics › how to reduce interest rates on student loan… please helpppppppp
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June 16, 2011 at 8:41 AM #18870June 16, 2011 at 9:41 PM #704179
montana
ParticipantThe student loans that you consolidated in 2004 were variable rate stafford loans. You consolidated and locked in the then current weighted average rate of the stafford loans. You may have been offered additional borrower benefits that could reduce that rate further (on time payment discounts or ACH discounts).
Unfortunately, the loans that your wife took out were probably originated after changes in the Higher Education Act that changed stafford loans from variable rate loans to a fixed 6.8%.
You can still consolidate those loans, but now, only with the Department of Education (no more private lending, that is why you don’t see consolidation offers anymore) and you will retain the rate at which they current exist. However, depending on the balance of the loans, you may be able to extend the term to a manageable monthly payment and may be offered an ACH discount. You can also request a special IBR (income based repayment plan) repayment plan that is tiered to allow you to keep making at least your interest payments.
Do whatever you can to stay our of deferment or forbearance as the interest that accrues during these periods capitalizes.
June 16, 2011 at 9:41 PM #704273ParticipantThe student loans that you consolidated in 2004 were variable rate stafford loans. You consolidated and locked in the then current weighted average rate of the stafford loans. You may have been offered additional borrower benefits that could reduce that rate further (on time payment discounts or ACH discounts).
Unfortunately, the loans that your wife took out were probably originated after changes in the Higher Education Act that changed stafford loans from variable rate loans to a fixed 6.8%.
You can still consolidate those loans, but now, only with the Department of Education (no more private lending, that is why you don’t see consolidation offers anymore) and you will retain the rate at which they current exist. However, depending on the balance of the loans, you may be able to extend the term to a manageable monthly payment and may be offered an ACH discount. You can also request a special IBR (income based repayment plan) repayment plan that is tiered to allow you to keep making at least your interest payments.
Do whatever you can to stay our of deferment or forbearance as the interest that accrues during these periods capitalizes.
June 16, 2011 at 9:41 PM #704862ParticipantThe student loans that you consolidated in 2004 were variable rate stafford loans. You consolidated and locked in the then current weighted average rate of the stafford loans. You may have been offered additional borrower benefits that could reduce that rate further (on time payment discounts or ACH discounts).
Unfortunately, the loans that your wife took out were probably originated after changes in the Higher Education Act that changed stafford loans from variable rate loans to a fixed 6.8%.
You can still consolidate those loans, but now, only with the Department of Education (no more private lending, that is why you don’t see consolidation offers anymore) and you will retain the rate at which they current exist. However, depending on the balance of the loans, you may be able to extend the term to a manageable monthly payment and may be offered an ACH discount. You can also request a special IBR (income based repayment plan) repayment plan that is tiered to allow you to keep making at least your interest payments.
Do whatever you can to stay our of deferment or forbearance as the interest that accrues during these periods capitalizes.
June 16, 2011 at 9:41 PM #705017ParticipantThe student loans that you consolidated in 2004 were variable rate stafford loans. You consolidated and locked in the then current weighted average rate of the stafford loans. You may have been offered additional borrower benefits that could reduce that rate further (on time payment discounts or ACH discounts).
Unfortunately, the loans that your wife took out were probably originated after changes in the Higher Education Act that changed stafford loans from variable rate loans to a fixed 6.8%.
You can still consolidate those loans, but now, only with the Department of Education (no more private lending, that is why you don’t see consolidation offers anymore) and you will retain the rate at which they current exist. However, depending on the balance of the loans, you may be able to extend the term to a manageable monthly payment and may be offered an ACH discount. You can also request a special IBR (income based repayment plan) repayment plan that is tiered to allow you to keep making at least your interest payments.
Do whatever you can to stay our of deferment or forbearance as the interest that accrues during these periods capitalizes.
June 16, 2011 at 9:41 PM #705375ParticipantThe student loans that you consolidated in 2004 were variable rate stafford loans. You consolidated and locked in the then current weighted average rate of the stafford loans. You may have been offered additional borrower benefits that could reduce that rate further (on time payment discounts or ACH discounts).
Unfortunately, the loans that your wife took out were probably originated after changes in the Higher Education Act that changed stafford loans from variable rate loans to a fixed 6.8%.
You can still consolidate those loans, but now, only with the Department of Education (no more private lending, that is why you don’t see consolidation offers anymore) and you will retain the rate at which they current exist. However, depending on the balance of the loans, you may be able to extend the term to a manageable monthly payment and may be offered an ACH discount. You can also request a special IBR (income based repayment plan) repayment plan that is tiered to allow you to keep making at least your interest payments.
Do whatever you can to stay our of deferment or forbearance as the interest that accrues during these periods capitalizes.
June 16, 2011 at 10:22 PM #704193bearishgurl
ParticipantVery good advice, montana!
June 16, 2011 at 10:22 PM #704288ParticipantVery good advice, montana!
June 16, 2011 at 10:22 PM #704877ParticipantVery good advice, montana!
June 16, 2011 at 10:22 PM #705032ParticipantVery good advice, montana!
June 16, 2011 at 10:22 PM #705390ParticipantVery good advice, montana!
February 10, 2012 at 9:42 PM #737722Anonymous
GuestThanks for the advice montana, I hope lot of student gonna read your post about student loan. Literally, Education is the formal process by which society deliberately transmits its accumulated knowledge, skills, customs and values from one generation to another especially instruction in schools. Most of us prioritize finances in there education to get their chosen courses in the future but to those of them who lacks money Student loans are a way many individuals finance their educations. The loans currently account for more than $1 trillion in debt nationwide. I’ve read that estimated total credit card debt in the United States accounts for about $789 billion. Some of these student loans are federally backed and come with low interest rates. Other student loans come from private sources, and come with higher interest rates. The cost of education is increasing at a rate well above inflation.
Read more here Student loans becoming a major contributing factor to bankruptcy
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