First let me say that this is the most helpful site I have come across on student loan refinancing and consolidation.
I’m beginning my fourth year teaching high school and I’m looking to try to get my debt off my back faster.
I have 6 individual NJCLASS loans totaling 45,000 dollars with interest rates ranging from 7.3 to 7.8 percent. I’m set to be paying off the last one by Sept 2030. I started paying these in May of 2012. Monthly payment is 500.
I have 10 individual Government loans (Stafford and Direct Sub and Unsub) loans totaling 25,000 dollars with interest rates ranging from 3.4 to 6.8. Most being in the 6% range. I’m set to pay off the last one by 2022. I started paying these in May 2012. Monthly payment is 355.
My credit score is 808.
I come to you to ask for your opinion on whether or not I should bundle these together. I read your articles on why it isnt a good idea to change government loans because of the perks. I just wanted to see if you thought my case might be an exception?
May 3, 2014
What is a NJCLASS loan? Is this a private loan? Some schools and some states have special loans with special terms. I’d like to know a little more about this particular loan before giving any thoughts.
Thanks for the reply its a private loan.
May 3, 2014
For the private loans, consolidating at a lower interest rate is definitely a good idea. There are a ton of companies offering this service ( https://studentloansherpa.com/student-loan-reviews/ ), hopefully you will be able to get a much lower interest rate.
As for the federal loans, you are in a much better position than I am to evaluate whether or not it is a good idea in your case. My favorite way of evaluating the situation is to look at what your interest rate would be on the private consolidated loan, and then see how much more you would pay each month if you kept the loans with the government. This extra payment each month is the cost of the perks. You can look at it as insurance policy in case you lose your job and cannot find another one. Based upon the monthly cost, you have to decide if you want the insurance policy or the extra money each month. Then you have your answer.
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