my daughter has approx $100,000 in school loans. They were recently consolidated by fed loan. She is currently on income based repayment and this year they have waived payments. The interest rate is over 6.6 percent. She got a job in the fall teaching at the local university so the income will increase. Is there a way to lower the interest rate., if i understand correctly -she will be paying for 25 years and if the total amt is not paid, she will still not have to pay the balance it is forgiven.?
i have called fed loans and they said there is no lower interest rate.
Unfortunately, the company is correct that once the loans are consolidated, then the interest rate at the time of consolidation is the set interest rate for the rest of the loan term. I actually went through the same thing myself -- I consolidated my student loans in 1999 and was stuck with an 8.25 interest rate -- which was a good rate back then but really stinks now and I am still paying it (I have done everything to lower it - including writing to senators and congressmen about the rate being unfair in this day and age and there is nothing that anyone can do). If I had not consolidated back then and waited, I would have gotten a better rate but that would have meant paying 8 different loans every month and I could not afford it -- and that is exactly how the loan consolidation companies get you. I wish I had better news for you on the interest rate but it is what it is.
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