Quote:
Originally posted by Discotish
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Student loans are to help students pay tuition, housing, etc...they are not all purpose loans for your own personal use for whatevery you want, just because of the low rates. You want to get a low interest loan for investments,a car, whatever...maintain a good credit rating and go to a bank. Don't freeload off the government and take loan money from people who really need it
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If someone is awarded loan money for college to cover expenses and that person lives at the level below what their estimated needs are and they invest the money-- illegal??? NO. financially savvy?? YES.
And back to your questions Rudey....
I consolidated about $65,000 in student loans through Direct Loans. Direct Loans is part of the William D Ford Foundation which is associated with the Dept of Education. When I consolidated I locked my rate in at something around 4%. Like you mentioned, as I make on time payments the interest rate is lowered.
As far as your current lendor being an ass about giving up the loans--- they can tell you you what the want, but the fact is they can't hold onto your loans. The lendor doesn't want to give up the interest income your loans are generating.
We consolidated my husband's loans also and had huge problems with the lendor. I had the monthly payments set up to come out of my checking each month. I requested they stop the auto pay due to the pending consolidation, they told me they could deny the consolidation and would not stop the auto pay. The month the consolidation was due to go through, I put a stop pay on the auto pay. I received confirmation from Direct Loans that the other company had been paid. A week later the b*tch from the old company called about the stop pay. I told her the loan was paid in full by Direct Loans, she hung up on me.
When I started my husband's consolidation, I mentioned the problems with the current lendor. Direct Loans told me not to worry about it, they could get it through.
They have been a great company to work with. Good luck.
-wendi