I just graduated college and have 2 student loans with Wells Fargo for 5500 each. (I also have a $1500 from my school but that's not federal)

Someone told me that I should consolidate these before July 1st to lock in good rates.

Unfortunately, I don't really know anything about these loans. What rates am I paying now? (Repayment hasn't started yet) I got a brochure from the school, but frankly it's all mumbo-jumbo to me. Can you tell I wasn't an Econ major?

Is there anything I should do immediately, or can I wait another 5 months for repayment to start?

Sorry for a dumb newbie question, but any pointers in the right direction would be much appreciated!

bina

Since all your Stafford Loans are with Wells Fargo, you will be required to try to consolidate with them first. As long as all your Stafford Loans were issued after July 1, 1998 your current rate, while in grace, is 2.82%. On July 1, 2004 your rate will go down to 2.77%. This will make no impact on your rate when you consolidate. If you consolidate while you are still in your grace period, your consolidated rate would be 2.875% whether you consolidate now or wait until October to do so. If you do not consolidate while in your grace period, your rate will go up to 3.37% and would consolidate at 3.375%. The caveat to all this is whether or not you are planning on going to graduate school in the fall. If so, then you probably would not be allowed to consolidate until after finishing grad school. If you are not going to grad school right away then I would definately recommend that you consolidate, but you can wait until the fall to do so.


fla-tan