Sunshine_IHB
New member
Hello,
I'm looking for IHBers who: (1) have recently consolidated private student loan debt, or (2) have knowledge about private student loan consolidation. With a low Prime Rate and LIBOR, my variable rate private student loans are less than 5%. However, I fear that rates will start to go up and eventually sky rocket and I'd like to explore consolidation options. In 2006, when the prime rate was 8%, I shopped around and the best I could get was about 11% fixed with very good credit and so I decided not to consolidate. I spoke with a few people in the industry at that time and I was told that there was no incentive for the banks to be competitive, especially since the banks cannot repossess my education if I default on my payments (even though student loan debt cannot be wiped out in bankruptcy). I have very good credit and I've never defaulted or made a late payment on my loans.
Questions:
1. What are the best fixed rates currently offered, and by which entities?
2. I've heard that rates based on the LIBOR are better. What are your thoughts?
3. Has anybody had success with renegotiating into a fixed rate consolidation loan with their current lienholder?
Thanks for your time!
I'm looking for IHBers who: (1) have recently consolidated private student loan debt, or (2) have knowledge about private student loan consolidation. With a low Prime Rate and LIBOR, my variable rate private student loans are less than 5%. However, I fear that rates will start to go up and eventually sky rocket and I'd like to explore consolidation options. In 2006, when the prime rate was 8%, I shopped around and the best I could get was about 11% fixed with very good credit and so I decided not to consolidate. I spoke with a few people in the industry at that time and I was told that there was no incentive for the banks to be competitive, especially since the banks cannot repossess my education if I default on my payments (even though student loan debt cannot be wiped out in bankruptcy). I have very good credit and I've never defaulted or made a late payment on my loans.
Questions:
1. What are the best fixed rates currently offered, and by which entities?
2. I've heard that rates based on the LIBOR are better. What are your thoughts?
3. Has anybody had success with renegotiating into a fixed rate consolidation loan with their current lienholder?
Thanks for your time!