Another College Loan Question?? - Lateral-g Forums

BC69 · #1 06-25-2006, 11:05 AM

As you recall from a month or so ago, my college loan situation is out of control. I just finished consolidating my federal loans at a fixed rate of 4.7% because it will increase to 6.7% in July.
Now I am on to my private loans, I have two private loans totaling shy of 60,000 for freshmen and sophomore year. One is a locked rate of 9%, but the other is a monthly variable stagnating at 13%. I want to consolidate at a FIXED rate. I have talked to a few places, including loantolearn.com bankofamerica, wachovia, and they are only offering variable rates at the Prime, even when consolidating.
Prime right now is 8%, and then they tack on a spread, and at my age and credit the spread is high, so it becomes a 12% rate too!! In just shy of a year I have gained $5,000 in interest alone! To curb the compounding I need to make payments of 442 a month just to cover interest. It will double or triple coming out of college.

Does anyone know where I can consolidate at a FIXED rate??! I mean I know you can get home loans at better rates than this!

BTW: If you have young kids, open a 529 savings plan, Now!!!

Thanks Guys,
Tim

youthpastor · #2 06-25-2006, 06:39 PM

Thanks for reminding me-I gotta get my federal one done for 2006-07. July is comming soon!

Clsccmro · #3 06-25-2006, 08:42 PM

I have two private loans through Sallie Mae, and neither are fixed rates. They are both monthly variables. They won't let me fix them, but my rates are 9.0% and 9.25%, so I guess that's a little better than what you've got. Maybe you should check them out?

BC69 · #4 06-26-2006, 04:04 AM

I have them through Sallie Mae, I just wish I didn't, they just slapped the rate on and I still dont know why. Talking to someone at that place takes ages!!!

But yea, I could deal with around 9%, but I would be happier in the end with an 8% or 7% loan.

Thanks

Steve68 · #5 07-06-2006, 03:14 AM

Whats a 529 savings plan????

*rayman* · #6 07-06-2006, 03:43 AM

move to Australia, it's much cheaper to get a good education here!

BC69 · #7 07-06-2006, 03:59 AM

A 529 savings plan is generally a state sponsored savings plan that is for the most part a tax free way to save for your kids college costs. It acts like an IRA, where the money is invested in numerous investment vehicles, funds, money market, bonds, ect. mainly of your choice depending on the plan you wanted. You can make annual large cash deposits without getting hit with taxes, and the tax rules for withdrawl to pay for college costs is I believe tax free as well. So you are not getting hit with any capital gains or dividend tax.

As with anything tax, I am not 100% sure, its pretty detailed, but it is the best way to save for a childs education in my opinion.

I dont know if they were around when I was growing up, but I sure didn't have one, but its a good idea if you have young kids, because tuition is constantly rising. Boston College at 8% a year since I have been there, pushing it over 46k! I can't imagine 10 years from now, or when I have kids!!

Tim