Is 9. 5% ridiculously high for a student loan consolidation. . . should I take it?
November 9, 2010 by admin
Filed under Student loans
I am paying one consolidated federal loan, and I have 4 alternative loans about to begin. The only interest rate I can get (without a cosigner) is 9. 5%. . . Should I just do 5 payments a month? That’s a lot of $$$ for a recent grad!
What would you do? If I take the 9. 5%, over 20 years I will be paying about 35,000 in interest. That just seems ridiculous to me. . .
If the 9. 5 is less than the rate you are getting on the other 4 loans, then go for it. If its more, then don’t.
Most federal loan companies will grant you a lower interest rate if you do an auto draft payment and again if you have a good payment history. . . . . Not always for consolidated loans.