Student loan #1 reconsolidated
Back in June we applied to have the student loan #1 reconsolidated with another lender. The primary motivation was to get additional rate discounts that we can not get with our current lender. Currently this loan has an interest rate of 5.75%.
After waiting patiently for five months the transfer is now complete. With the new lender we can now get a .25% interest rate reduction by setting up automatic payment (takes 30-45 days to set up) and after 12 months of on-time payments we get an additional rate discount of .80%. So, in a year we should have an interest rate of 4.70% instead of the current 5.75% if everything goes as planned.
Our old monthly payment for this loan was $181.63, but starting this month our new payment will be $210.43 which will force us to pay it off at a faster rate.
Because of the reconsolidation we will have this loan paid off 3 years sooner and will have saved over $3,000 in interest in the end.
After waiting patiently for five months the transfer is now complete. With the new lender we can now get a .25% interest rate reduction by setting up automatic payment (takes 30-45 days to set up) and after 12 months of on-time payments we get an additional rate discount of .80%. So, in a year we should have an interest rate of 4.70% instead of the current 5.75% if everything goes as planned.
Our old monthly payment for this loan was $181.63, but starting this month our new payment will be $210.43 which will force us to pay it off at a faster rate.
Because of the reconsolidation we will have this loan paid off 3 years sooner and will have saved over $3,000 in interest in the end.
posted by Brian at
11:37 AM
1 Comments:
Good work. I like how you set concrete goals that are achievable instead of the usual general goals that will never get accomplished by other people.
By
Loi Tran, at 11/29/2005 12:22 AM
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