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I just have to ask:

Okay-- When I got out of school (2 years ago) I had a small loan from AFSA, several small loans from Sallie Mae and some other folks, and then a humungous loan in my mothers name from USA Group.

I consolidated all of the Sallie mae loans into 1 (a fixed rate of 7.5%, but left out the AFSA loan because the interest was lower. I couldn't do anything with the USA group loan because its not in my name.

Now I would like to take advantage of the July 1st consolidation, etc. business, but I'm wondering if I'm disqualified because I have a fixed rate loan. Is this true? Even if I consolidate the AFSA loan with the Sallie mae loan through Direct Loans? A very SIMPLE explanation would be appreciated.


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ROFL there are simple explanations too!

If the AFSA loan is a federal loan (like a Stafford or Perkins) it can go in with the other loan to a Federal Direct Consolidation Loan. It doesn't matter that one of the rates is a fixed rate. We are all talking about the variable rate mostly cause that is what most people have. If you have only fixed rate loans, you could consolidate now and not even wait til July 1. (People waiting are waiting for the variable rate to drop. It goes down July 1.)

With Direct Loans, they will knock 0.8% off whatever the fixed rates are. Your new loan would be an average of the consolidated loan and the AFSA loan.

Make sure your AFSA loan isn't variable rate. If the rate for that loan changes next week, you will want to wait til next week.
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