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Hi Guys, I'm new to this site and would appreciate anyone who can give some advice.
I recently graduated college, and currently have $53,500 in private loans through wells fargo, including the interest that has already generated. I also have about $24,000 in government loans. The advice I'm looking for is mostly about the private loans. The $53,500 is in two loans, one with a principal of 25,000 at 10.24% interest. The other is a $20,000 at 9.24%. They have gained a combined $8,500 in interest over the past 2 years. They are in grace until january 2013, but that obviously doesn't stop the interest accumulating. My question is about consolidation:
I called Wells Fargo and asked about consolidating into one loan with a lower interest rate. They had me fill out an application, which I had my father cosign with me. They offered me a consolidation loan at 12.59% fixed. Which is obviously absurd, seeing as my combined interest with the separate loans right now is like 9.8%. When I told them that they offered a variable rate, with a margin of 5.2%, which would depend on the prime, and currently added up to 8.75%, but has no cap. It seems to me that neither of those options are worth it. Best case scenario it stays at 8.75, and I gain about 1%. Worst case, the economy soars and I'm looking at a prime of 8% and start paying 13% interest.
Does anyone know why I'm getting offers of such horrible interest rates? They said it is a credit based application, and I'm 22 with a history of about 4.5 years and a credit score of 752. My father has a score of 730, and has had a history of about 30 years. So I don't understand why I'm getting such awful rates. Is there any solution to this predicament? It seems that Wells Fargo is the only company offering private student loan consolidation right now...if anything I've said in here sounds wrong, please correct me.
I recently graduated college, and currently have $53,500 in private loans through wells fargo, including the interest that has already generated. I also have about $24,000 in government loans. The advice I'm looking for is mostly about the private loans. The $53,500 is in two loans, one with a principal of 25,000 at 10.24% interest. The other is a $20,000 at 9.24%. They have gained a combined $8,500 in interest over the past 2 years. They are in grace until january 2013, but that obviously doesn't stop the interest accumulating. My question is about consolidation:
I called Wells Fargo and asked about consolidating into one loan with a lower interest rate. They had me fill out an application, which I had my father cosign with me. They offered me a consolidation loan at 12.59% fixed. Which is obviously absurd, seeing as my combined interest with the separate loans right now is like 9.8%. When I told them that they offered a variable rate, with a margin of 5.2%, which would depend on the prime, and currently added up to 8.75%, but has no cap. It seems to me that neither of those options are worth it. Best case scenario it stays at 8.75, and I gain about 1%. Worst case, the economy soars and I'm looking at a prime of 8% and start paying 13% interest.
Does anyone know why I'm getting offers of such horrible interest rates? They said it is a credit based application, and I'm 22 with a history of about 4.5 years and a credit score of 752. My father has a score of 730, and has had a history of about 30 years. So I don't understand why I'm getting such awful rates. Is there any solution to this predicament? It seems that Wells Fargo is the only company offering private student loan consolidation right now...if anything I've said in here sounds wrong, please correct me.