Please take a look at these Student Loans

[Bades]

Hey guys, helping out my gf. Here are her loans and rates. Pays about $550 a month.

Anything that sticks out? Is consolidation a good option here? Thanks!

Private Loans - comprised of 3 different companies
#1 - 8,700 @ 3.19
#2 - 8,300 @ 4.99
#3 - 6,400 @ 6.80
#4 - 8,200 @ 2.75
#5 - 6,400 @ 5.00

Total - 38,100

Federal Loans
#1 - 11,100 @ 4.25
#2 - 4,300 @ 6.55

Total - 15,400

Grand Total 53,500

[jpg7n16]

Well the effective average rate is 4.54%. And based on the balance there, there is $2425.8/year of interest roughly, meaning it is likely all deductible. It's not an itemized deduction, so make sure she takes this deduction if she qualifies on income. (less than $60k gets full, partial up to $75k)


Since she's obv not happy with the debt, unless she gets a ridiculous refi rate she'd be better off paying more aggressively on the higher rate debts.

If she pays off the 6.8% debt, her effective rate falls to 4.2%. If she pays off the 6.55% debt too, it falls to 4%.


IMO - she'd have to be able to consolidate under 3.75-4% to make it worth her while. Most SL consolidation offers I hear about are not that low.

[Bades]

Thanks for the response that's what I was basically looking for. She's looking into throwing some additional money towards the 6.8% one.