My wife’s student loan fm AES is OVER 10% interest: as a single loan, is there any “consolidation” option?
I know that consolidation from multiple loans is possible, I just would like to know if there are any lower interest options out there. American Education Services is killing us with this high interest – and the quicker we pay it off, the higher they raise the interest!
It is possible to consolidate single loans if they have not been consolidated before.
If the interest rate is 10%, it sounds like it must be a private student loan (as opposed to federal)? Typically private student loans (including consolidation loans) are credit-based. Since they’re not backed by the gov, there’s higher risk to the lender. So, if you consolidate with another lender, you may not be able to get a better interest rate.
Some options for you would be to get a cosigner with good credit, or work on your wife’s credit score *before* you try to consolidate with another company.
Here’s some good info on maintining/improving a good credit score: http://www.salliemae.com/before_college/planning-wisely/debtsmart/repayment/maintain_rating.htm
And here’s some info on private student loan consolidation: http://www.salliemae.com/content/privateconsolidation/more_info.html
Hope that helps.
