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OK, so the Fool site has info on how you can consolidate your loans at a really low interest rate, but I surfed on over to the direct loan site and couldn't find squat about it. Are they waiting until July 1 to post the info, or am I missing it? If anyone could send me a link I'd really appreciate it.Thanks![email protected]
https://loanconsolidation.ed.gov/appentry/appindex.htmlThis link may work (maybe not since it's https), but you will want to click on the part saying "Repayment Incentive Program -Lower Interest Rates Announced!"
Thanks for the reply. This isn't the same program -- this one started on October 1, 2000 and lowers it by 0.8 percent. http://www.fool.com/specials/2001/sp010613z.htm describes a program which starts on July 1, 2001, and has much lower rates, as low as 5.99%. I couldn't find anything about this on the fed loan site. If anyone has a URL, please share! Thanks. :)
Ah, you've got two things going on here.One is the "timely payer" discount of 80 basis points (".8%") that is running from October 2000 to September 30, 2001.The 5.99% starting July 1 is the ordinary interest rate on a Stafford loan of recent vintage (1998 or later). This would be a loan whose interest rate is calculated as May 29 auction 91-day T-bill plus 230 basis points (2.3%). What many of us are going to do is consolidate after July 1, because the government will take the 5.99% (rounded to the next highest eighth, or 6%) and allow the .8% timely payer discount. There will be then a "new" rate of only 5.2%.This rate is fixed for the life of the loan, as long as the first twelve payments are made on time. Otherwise, the consolidation is at 6% fixed.If the loan is not consolidated, the rate is 5.99% starting July 1, and may be a different (higher) rate each later July 1. The loan remains interest rate remains variable.
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