student loan consolidation process
I want to consolidate some Staffords, both unsubsidized and subsidized,
and a Perkins loan. Everything is with Sallie Mae right now, so I
believe that under the one lender rule that I have to consolidate with
them. My questions:
1) Is that correct that I have to go with Sallie Mae?
2) Would the interest be the same with any loan consolidation company -
that is based on the Federal Prime Rate which for my loans from 19995
to 1997 would be 4.17?
3) Sallie Mae will immediately give me a .25 discount for direct repay
but then they start the loan at a rate of 4.25 instead of 4.17 and I
can't figure out why. The loan rep I spoke to had no explanation. I
could call again, but does anyone else know what the reason might be?
- Single lender rule means that they have the first right to
consolidation. If they choose not to, then you are free to go wherever
you want.
- Interest rate will be the same with any lender based on the rules when
you took out the loans.