Stafford loans

[Kal-el]

My wife owes 3400.00 on her stafford loan (subsidized). We had never heard about consolidaion until recently. She has 4 loans through College Foundation each at 9%!!. we have paid 1000.00's on these loans with the balance hardly moving down. Thought it was one loan instead of 4, one loan for each year she went to school. They say we cannot consolidate because we only! owe 3400.00. Anyone have any advice?! Thanks!

[dirtbikeguy]

You might be outta luck---$5k is the minimum for Federal Direct Consolidation.

[Kal-el]

Thanks . I bet my children dont make this mistake. Looking at a regular loan to pay them off. I have been looking at other websites and they all say the interest should be a lot lower than the 9% they are charging us, per loan. Can they set the interest at what they want it to be, or do they have to follow federal law? We have had to do do forbearance a few times so would this change the rules? Thanks

[LynnInMN]

Sounds like your wife has an older loan. It was not uncommon in the late 80's, early 90's to see loans staffords with 9% interest rates. For a time there, PLUS loans were 12%. The interest rates were set depending on the year they were taken out, set by Federal law.

[Kal-el]

ok, thanks.