I've been hearing about a possible drop in interest rates on July 1st.

Quote Fla-Tan

Right now I have the following:

$1,700 at 4.22% with NelNet
$24,000 at 3.42% with Direct Loan (DoE)

If I wait to consolidate do you think that would be better? How likely is this rate increase? Fla-Tan, can you give me the source from which you're getting this info? I'm really anxious to consolidate but I always looking to save $$! =) Thanks for the help!!

I'm not fla-tan, but I can tell you that interest rates will be dropping July 1. I got an email from Sallie Mae a couple of days ago about it.

Thanks for the reply Cheech! Can you give me anymore information about the interest rate drop? Would it apply to anyone consolidating for the first time? Did it say the interest rate was dropping for sure... or just maybe?

Anyone else with info please pipe in!

I applied with DoE in mid-April. Every place I've seen is holding current applications until July 1 - if the rate drops then, you'll get the new rate, and if not, you'll get the old rate. Because of that, it wouldn't really matter if you wait to apply, as long as you know the company you choose has that policy.

No maybe about it. The rate drop was announced Monday. I got an official email from Sallie Mae. I also saw it on Yahoo business news.

I did like msp75 - I applied for consolidation and SM was holding my app until the new rates were announced. I got my notice that the rates were dropping and that my consolidation would be processed after July 1.

Here's a link to a press release from NelNet about the rate drop with details about the specific rates for each type of loan - http://biz.yahoo.com/prnews/040524/lam098_1.html

LrningGrl

The new rates have been announced, however they will not go into affect until July 1. The new rates are as follows, look at the current rate and what it's new counterpart rate will be:

3.42 will become 3.37 for consolidation the rate would be 3.375
2.82 grace rate will become 2.77 for consolidation the rate will remain 2.875
4.22 will become 4.17 for consolidation the rate will remain 4.25
3.62 grace rate will become 3.57 for consolidation the rate will remain 3.625

The only rate that has been affected by the rate change is the 3.42% rate for consolidation. If you have a mixture of more than one of the above rates, then the consolidated rate would be a weighted average of the above rates.


fla-tan

Thank you so much for your answers everyone! This might not be the right place to ask this but I'll give it a try...

Maybe someone who's better with number than myself can't answer this...

Right now I have the following:

$1,700 at 4.22% with NelNet
$24,000 at 3.42% with Direct Loan (DoE)

I would like to consolidate but am wondering if it would be better to wait till July 1st for the rate decrease or consolidate now with IDAPP and get 1% interest rate reduction after 24 payments, another 1% after 48 on time payments. (Idapp is ending that promotion on July 1, the same day the new lower interest rate takes effect.)

So I'm wondering if it would be better to get the immediate rate decrease by waiting to consolidate after the new rates take effect and get the standard 1% reduction after 24 ontime paymetns... or consolidate now with IDAPP and get a 1% interest rate reduction after 24 payments, another 1% after 48 on time payments?

Does this make any sense? I can give more info if needed... I think it would be better to go with IDAPP right now but I thought I'd better ask some experts. =) Thanks for any advice you guys give!

bump... any suggestions?