SHORTCUTS

529 Plan Details:

Enter your state:

World's Simplest College Calculator:

How old is your child?

Find a 529 Pro:

Enter your zip code:

Enroll In a 529 Plan:

View a list of participating plans

OPTIONS

COLLEGE SAVINGS 101

Do I really have to consolidate?

06/29/2006

QUESTION:
Dear Joe,

I did consolidate my student loans last year to lock in a lower interest rate. Does that mean that I will never have to worry about it again since they are raising interest rates every year?

-- Rainy

ANSWER:
Dear Rainy,
You did the smart thing by consolidating your loans last year when interest rates were at their lowest. Since you've locked in at such a great rate, I think all you need to worry about is making your payments on time. I doubt we'll see interest rates come down to the point where you will ever want to look at refinancing your consolidation loan.

For anyone who failed to take advantage of the opportunity to consolidate by June 30, 2005, be sure to consider it now. You have only until this Friday, June 30 to apply. The interest rate will not be as low as last year, but will certainly be better than the rate that takes effect on July 1, 2006.

Other recent questions

»529s and Financial Aid (Video) (11/19/2014)
»529s and Financial Aid (Script) (11/19/2014)
»What are the best ways to maximize the savings in my 529 plan? (Video) (10/14/2014)
»What are the steps involved in setting up a 529 account? (Script) (09/15/2014)
»What are the steps involved in setting up a 529 account? (Video) (09/15/2014)
»What is the first step in getting started with a 529 plan? (Script) (09/05/2014)
»What is the first step in getting started with a 529 plan? (Video) (09/05/2014)
»Coverdell ESA vs. 529 Plan: Which to choose? (Video) (07/15/2013)
»Coverdell ESA vs. 529 Plan: Which to choose? (Script) (07/15/2013)
»What is the best 529 plan for me? (Video) (07/10/2013)
»What is the best 529 plan for me? (Script) (07/10/2013)
»What happens to my 529 if my child gets a scholarship? (Video) (07/02/2013)
»What happens to my 529 if my child gets a scholarship? (Script) (07/02/2013)
»Can grandparents open a 529? (Video) (06/20/2013)
»Can grandparents open a 529? (Script) (06/20/2013)
»Do I have to use my own state's 529 plan? (Video) (06/12/2013)
»Do I have to use my own state's 529 plan? (Script) (06/12/2013)
»529 Plans: Tax Benefits of a 529 Plan (Video) (06/07/2013)
»529 Plans: Tax Benefits of a 529 Plan (Script) (06/07/2013)
»What are the Pros & Cons of 529 plans? (Video) (05/30/2013)