Salle mae

[jakemgg]

Hi,

 

We have a Sallie Mae loan that we cannot consolidated anymore. It was consolidated many years ago to one loan. It is at 9% interest and we canno make the payments. It has been deferred for a couple years and we were doing income sensivite for a while. We are out of deferrment time and have a high income sensitive payment.

 

Any suggestions on how to refinance this loan to take advantage of the low interest rates??

 

HELP

[LynnInMN]

Unfortunately once you have consolidated, you cannot consolidate again. Also, you would not be able to take advantage of lower rates as the rates being offered now are tied to the original APR of your loan. Sounds like you took your loans out originally when the rates where 8-9% right?? Currently when you you consolidate, your interest rate is set as a weighted average rounded up and 1/8th of %. If your original loans were fixed 8% loans, your current rate would be the same plus the 1/8th percent!

[fla-tan]

Unfortunately once you have consolidated, you cannot consolidate again. Also, you would not be able to take advantage of lower rates as the rates being offered now are tied to the original APR of your loan.  Sounds like you took your loans out originally when the rates where 8-9% right??  Currently when you you consolidate, your interest rate is set as a weighted average rounded up and 1/8th of %.  If your original loans were fixed 8% loans, your current rate would be the same plus the 1/8th percent! Actually, this is incorrect. Yes, consolidation is a weighted average rounded up to the nearest 1/8% except when the weighted average is at a 1/8% percentile. For example, if you have one loan for $10,000 @ 4.0% and another $10,000 @ 5% the weighted average would be 4.5% and not 4.625% as you stated.

<{POST_SNAPBACK}>

 

 

fla-tan

[fla-tan]

Hi,

 

We have a Sallie Mae loan that we cannot consolidated anymore. It was consolidated many years ago to one loan. It is at 9% interest and we canno make the payments. It has been deferred for a couple years and we were doing income sensivite for a while. We are out of deferrment time and have a high income sensitive payment.

 

Any suggestions on how to refinance this loan to take advantage of the low interest rates??

 

HELP

<{POST_SNAPBACK}>

 

jake

 

There is one exception that you may be able to take advantage of. However, without knowing how much you owe, I can't say whether it would be worthwhile. The only way you could, at this point, reconsolidate would be to go back to school and take out a single federally guaranteed student loan. This would then allow you to reconsolidate. The new reconsolidated loan would have a weighted average interest rate with a maximum rate of 8.25%. If you owe a large amount then it may be worthwhile for you to go back to school so that you can take out an additional loan.

 

 

fla-tan