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Author: elburrito Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8178  
Subject: Refinancing Student Loans Date: 1/5/2001 4:31 PM
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Not sure if this is the place to ask this, but here it goes anyway. I currently have student loans in excess of $13,000 at a 9% interest rate. My question is this. My student loans are currently being handled by Sallie Mae, but I wanted to know if it was possible to refinance student loans at a better interest rate with another institution? Not sure where to go with this one. Seems simple enough...people refinance homes all the time. Any help would be appreciated.

Thank you,
El Burrito
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Author: NellieD Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3268 of 8178
Subject: Re: Refinancing Student Loans Date: 1/5/2001 7:27 PM
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My student loans are currently being handled by Sallie Mae, but I wanted to know if it was possible to refinance student loans at a better interest rate with another institution? Not sure where to go with this one. Seems simple enough...people refinance homes all the time.

Unlike a home loan, a student loan can not be refinanced because they are unsecured loans. If you don't pay, what will they do? Take back your education?

However, you can Consolidate your student loans with Sallie Mae, another Student Loan lender or the National Direct Student Loan Program. Consolidation loans have extended payment terms and depending on the interest rates you currently have, could result in a very small reduction in interest. Also, you should always try to keep student loans with student loan lenders, as they are obligated to extend all of the deferment, forbearance and payment options of your student loans. This can be very important should you find yourself unemployed, disabled, or in some other situation where making payments becomes difficult or impossible.

Hope this helps.
NellieD


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Author: vlieberman Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3273 of 8178
Subject: Re: Refinancing Student Loans Date: 1/7/2001 4:24 PM
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My loans are also handled by Sallie Mae. By agreeing to have your monthly payments directly deducted from your checking account, you may qualify for a reduction of interest. I think its .25% per year for a max of 2%, but call Sallie Mae to be sure. My original rate was 9% and is now at 7.75%. I looked into reducing the rate with another consolidator, but this was the best option when I looked into it.

Also, the benefit of having your payments directly withdrawn from your account is that they are always on time, no additional interest is paid, and it helps your ctedit (or maintains good credit).

Further, you may increase your payments, such as when you get a raise at work. I increased my payments by $50 per year this year, and I will pay off my loan ($26k) 2 years earlier. Its a good deal.

Check it out.

VLieberman

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Author: jkrou Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3274 of 8178
Subject: Re: Refinancing Student Loans Date: 1/7/2001 4:42 PM
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In addition to the rate reduction by using direct debits, when you have 48 months of perfect payments (on time) you will get another reduction in interest rate.

Jenn

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Author: tsouth Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3275 of 8178
Subject: Re: Refinancing Student Loans Date: 1/8/2001 7:22 AM
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Not sure if this is the place to ask this, but here it goes anyway. I currently have student loans in excess of $13,000 at a 9% interest rate. My question is this. My student loans are currently being handled by Sallie Mae, but I wanted to know if it was possible to refinance student loans at a better interest rate with another institution? Not sure where to go with this one. Seems simple enough...people refinance homes all the time. Any help would be appreciated.

............................

Check the rates for Loan Consolidation throught the Dept. of Education's National Direct Loans program. We found the process easy and the rates reasonable.

Teresa

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Author: sprexumn Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 5854 of 8178
Subject: Re: Refinancing Student Loans Date: 2/20/2004 11:17 PM
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My loans are also handled by Sallie Mae. By agreeing to have your monthly payments directly deducted from your checking account, you may qualify for a reduction of interest. I think its .25% per year for a max of 2%, but call Sallie Mae to be sure. My original rate was 9% and is now at 7.75%. I looked into reducing the rate with another consolidator, but this was the best option when I looked into it.

I found info on this at:


http://www.salliemae.com/manage/borrower_benefit.html

for the smart loan consolidation account. 1% discount for 36 months of on time payments, .25% for electronic.


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