| Student Loan Consolidation - Is this a scam? |
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APSIRI4611
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Joined: 04 Apr 2007
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| Student Loan Consolidation - Is this a scam? |
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I�ve been getting all kinds of stuff in the mail telling me to consolidate my student loans�one company even said they would make my interest rate 2.5% lower. Is this a scam?
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Wed Apr 04, 2007 4:56 pm |
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fultron
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It's probably on the up and up. I consolidated my student loans a few years ago and locked in a low interest rate. If the rate you're paying now is higher than current rates, it's possible they could beat it by 2.5%.
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Wed Apr 04, 2007 6:34 pm |
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muneebgs
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Student loan consolidation in general is not a scam (although some consolidation companies can use marketing tactics to make you think you getting something you�re not like a very low interest rate)
What consolidation does is combine all of your student loans together into one payment and it can also help you lower your monthly payment. This is done by stretching your payment over a longer period of time (for example, allowing you to make payments over 20 years instead of just 10 years). So, if you want to lower your monthly student loan payment then consolidation might be a good option for you.
It is always best to do a federal loan consolidation (vs a private loan consolidation) with your Stafford and PLUS loans. This allows you to change your interest rate from a variable rate (that can go up each year) to a fixed rate (rate won�t change from year to year).
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Tue Apr 10, 2007 2:27 pm |
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