QUESTION:
With graduation coming up soon for many of us and the repayment of loans occurring shortly after that, I was wondering if you had any information on loan consolidation and how to negotiate down loan interest rates. I've done some preliminary research, and a lot of the information I've found simply lowers the interest rate over extended periods of time. However, I am interested in finding out if I can (1) consolidate my law school loan, then (2) negotiate a lower interest rate over a shorter time period. I also want to make sure that I maintain the option for advance payment without a penalty.
Your question about Loan Repayment Options was directed UALR’S Financial Aid Director. Her response is below.
ANSWER:
I am not aware of any options in the federal student loan programs to "negotiate" an interest rate. The interest rate is set in federal law.
Over the past several years, new payment options have been introduced primarily to assist students by lowering monthly payments and increasing the repayment period. If the student navigates to http://studentloans.gov there is a section on the bottom right about managing repayment. The student can drill down in that information to learn about loan consolidation http://studentaid.ed.gov/
University of Arkansas at Little Rock | Office of Admissions and Financial Aid
O: 501.569.3035 | F: 501.569.8956 | http://www.ualr.edu/admissions
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