Student Loans

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  • When my husband and I graduated college in 2003 interest rates for student loans were at there lowest. My loan is at 2.25% and one of his is at 2.75%. He has a second loan which his parents took out for him that is an adjustable rate. It has ranged from 3.75% to 9.75% over the past 7 years. Right now its decent at about 3.85%. Would it be beneficial to us to bring it to our account here and get that rate locked in? Will they lock it in or do student loan compaines usually frown upon dmp? Thanks.
  • Good morning,

    We do not extend loans nor is this a loan consolidation company. Unfortunately, we (DMP’s) typically do not receive any benefits from those types of lenders. A lot of this has to do with the historically low rates that Student Loans receive. We will act strictly as a third party payer which means the creditor still expects the normal minimum monthly payment and will have no impact on your interest rate. Here is a previous post with some repayment options.

    There may be other options as well:

    Deferment:
    The temporary postponement of loan payments. During a deferment period, interest is not charged on Direct Subsidized Loans, but it is charged on Direct Unsubsidized Loans. The borrower has the option to pay the interest or have it capitalized.

     

    Forbearance:
    An arrangement to postpone or reduce a borrower's monthly payment amount for a limited and specified period. Interest is charged during a forbearance period, regardless of the loan type.

     

    If you have multiple loans you can contact an organization who will consolidate them into a new loan. Most usually provide a six month hiatus from making payments and you may be able to defer them again based on the new lenders policies.

     

    Most financial experts recommend Federal Direct Consolidation Loan program and few well known banks: Chase, NextStudent, Student Loan Network, and Wells Fargo

     

     

     

    Thanks

    Coach Tammy

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