Hello,

I know there are no opportunities to consolidate private student loans. I'm just wondering if basically when the credit crisis eases, is that when consolidation programs are likely to return?

Also, since the government already paid billions to certain companies, why not offer federal consolidation for private loans. Would that be a possible solution?

Here's my balances:

Chase - $4,210.08 & $8,920.30
Sallie Mae - $35,287.72 & $12,365.69

Interest Rates
Chase - 11.47% & 14.75%
Sallie Mae - 4.75% & 7.75% & 9.75%

All current amazingly, lol. Chase's interest rates suck..considering they just got 25 billion dollars.

Private loans are not federally insured by the DOE. It will never happen.

Never thought Lehman would collapse either.

I think that Lynn is right that it's unlikely. But that doesn't mean you don't have options. Depending on the amount of debt, you might be able to get a personal loan with a fixed interest rate in the 4-5% range. (For example, I have a 16K LOC at 6%). You could then take that money and pay off your student loans. You have effectively consolidated them on you own. There are, of course, disadvantages to this route, and not every one can do it, but it's something to consider especially with your Chase loans and that high interest rate. Another possible way is to use a well-off relative to loan you the money at a reduced rate as well.

I'd muck around and explore some possibilities. 16K isn't that much dough; even just refinancing that 8k at 14% will make a difference. It's worth a shot anyway.

/BTW, I thought my 9% interest rate in the 1980s was high. 14%, Yikes!