I have 3 students loans which I have accrued via my college career. I not long ago graduated and have started meditative of amends options. Two of the loans have been supervision loans, and one is private, Stafford Loan, Perkins Loan, and NJ Class loan respectively.

I was wondering what the most appropriate choice was for repaying i.e. loan converging or profitable each loan separately. The Perkins I would not embody in converging as it practice a bound rate of approx. 4%.

I was meditative it competence be probable to take out a unchanging bank loan (especially with these low seductiveness rates) and make use of the deduction to compensate behind all my loans and usually have to be concerned about this brand new bank loan. Does any one know if which is possible?

Thanks really most in advance.


Woelfe March 15, 2014 at 1:22 pm

You are saying you essentially have 3 loans, 2 govt and 1 private. The Perkins is a 5% fixed interest rate loan, and the Stafford if disbursed after July 1, 2006 is a fixed interest rate of 6.8%. The private loan is going to be a variable rate loan that will fluctuate based on the market.

You really should not bother with consolidation. For starters, if all your govt loans already have fixed interest rates you are all set. Second, you cannot consolidate private with federal loans. And you are unlikely to find a better deal to be honest than the rates you already have. Well maybe on the private loan.

You have to be careful about paying off all your loans with another non-education private loan because they will not likely offer forbearances or adjusted monthly payments in event of economic hardship. And the government loans are full of repayment benefits like unemployment deferments, economic hardship deferments and forbearances.

Your best bet is to put as much resources into paying off the private loan first, and then concentrate on your Stafford, and then Perkins. It is called debt stacking – paying off your higher interest rate loans first.

Found-1 March 15, 2014 at 1:24 pm

I agree with Wolfe, don’t consolidate and dont do a regular loan either. Once you do a reqular loan, you can’t deduct student loan interest you pay off your taxes either.

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