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Sallie mae not consolidating loans

Or, if you're already enjoying various benefits and want to maximize them and still lock in a historically low rate on your debt, you might wait until next spring to consolidate.Just be sure you leave a one-to-two month window for your consolidation application to go through, and be sure it's a done deal by June 30, 2003.According to Sallie Mae, which owns or manages student loans for more than 7 million borrowers, the new repayment rate for student Stafford loans will be set on July 1 at 4.06 percent.That's nearly two percentage points less than it has been for the past year.Consolidating at the in-school rate is highly advantageous, but once you consolidate you must begin making payments immediately.So it may be smart to have your consolidation take effect at the end of your grace period or by June 30, 2003, whichever is sooner.

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Doing so, however, means you will pay more in interest in the long run since you will be making payments over a greater length of time.For instance, if you make 48 consecutive on-time payments on your original loans you may qualify for a rate discount up to two percentage points.So if you're on the cusp of qualifying, do the math: it may make sense to stick with the loans you've got.When shopping for a consolidation loan, be sure to ask what benefits are offered.Lenders, for instance, may offer a rate discount of a quarter of a percentage point if electronic payments are made directly from your bank account.That's what Sallie Mae is offering borrowers who consolidate after July 1.In addition, those consolidating at least ,000 worth of loans will get a 1 percent discount if they make 48 consecutive on-time payments.NEW YORK (CNN/Money) - Interest rates on some federal education loans are headed to all-time lows.That's good news for your wallet if you're saddled with debt from college or graduate school.(Rates are set every year on July 1.) The beauty of consolidation is that you lock in one fixed rate that is based on an average of your loans' current rates.That way you no longer worry about paying more when interest rates climb, which is an inherent risk of variable-rate loans such as the Stafford or PLUS.

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