Waiting for consolidation

[kerri]

I applied for a consolidation with sallie mae at the beginning of June. The application is still in being processed. I got a message on the answering machine that I would get the lower interest rate because i applied before July 1st.

 

Today I got a new payment book and my interest rate went up. Can they do that until my consolidation is approved?

 

How long will the consolidation take to get approved?

[SLOYAROLE]

I applied for a consolidation with sallie mae at the beginning of June. The application is still in being processed. I got a message on the answering machine that I would get the lower interest rate because i applied before July 1st.

That's correct. All consolidation applications received before July 1st, qualify for the lower rates. Regardless of how long it takes to finalize the consolidation.

 

 

Today I got a new payment book and my interest rate went up.

Not quite following you there. Who did you receive a payment booklet from?

 

Can they do that until my consolidation is approved?

OK. If you have loans that are currently in repayment, continue to pay them. Are these the loans you received your payment booklet for? Until you receive notice in the mail from the consolidation company stating "your old loans have been paid and your consolidation is complete", you pay you loans as usual. So, to answer your question, Yes. The current holder of your loans increased your interest rate on July 1st because that's when the new rates went into effect.

 

 

How long will the consolidation take to get approved?

Anywhere from 30 to 90 days...or longer.

[kerri]

It is with Sallie Mae. I consolidated with them too. I consolidated my DH's loan and mine together.

 

So I will just have the higher interest rate until the consolidation is finished?

 

Thanks!

[LynnInMN]

It is with Sallie Mae. I consolidated with them too. I consolidated my DH's loan and mine together.

 

So I will just have the higher interest rate until the consolidation is finished?

 

Thanks!

<{POST_SNAPBACK}>

 

Do you know what interest rates you and your husband where paying?? You do realize that your new interest is the weighted average of the two loans rounded up 1/8 %.

Edited July 23, 2005 by LynnInMN

[kerri]

I think both of our interest rates were 5.625. Now we will have one payment instead of two.

 

I did the consolidation so our interest rates wouldn't go up July 1st.

 

So even going up 1/8% is better than 6.1%, right?