Student Loan Consolidation Apr
What plan of consolidation student loans would be better?
I am asking, without a guarantee and a desire to reduce my monthly payments (I paying about 5 banks right now, every month.) Fixed Interest Rate 13.45% 14.10% APR 5.00% Loan Fee $ 398.73 monthly payment or Variable Interest Rate% 11.06 3.06% Index – 3 Month Libor 8.00% Margin 11.64% APR 5.00% Loan Fee $ 330.49 Monthly payment, I realize these rates are somewhat ridiculous, but I'm backed into a corner. I really do not want to ask someone to cosign for me, and I do not want to keep paying $ 600 a month for several banks. What would you? Or should I try another bank? Thank you.
I do not use a bank, personally – I consolidate a student loan company. In this way the loans, their loans are still students, which (not morbid) are forgiven if you die or other circumstances, while a loan a bank must be paid for their goods or (if you're as broke as I do) for their loved ones. In addition, student loans qualify for forbearance and that sort of thing, that a bank loan would not. They also tend to have interest rates much lower than a bank loan because they are partially covered by the government. I like Direct Loan, my husband likes AES. The two despise Sallie Mae – are lost forever paperwork and collection of fees that should not, and their customer service is a joke. You can call the company you choose (or visit their website – I filed my line of consolidation), tell them you want to consolidate your student loans, and they guide you through the process. So if you are struggling financially, ask about income from indulgence – we both have our loans in forbearance, while I stay home with our new babies, and was a very easy process. My building does not need a guarantor, and in fact I do not think loan companies to turn down for a consolidation. If you're determined to make the bank loan, which again I would not advise, I suggest talking to a good accountant about what the difference will be over the life of the loan. I would be tempted to take a fixed rate loan, however, because it would be the same no matter what happens to our unstable economy, but do not know enough about interest rates and current market trends to ensure that is the best route to long term. Good luck!
