What Is The Interest Rate On A Consolidation Loan
What is the Interest Rate on a Consolidation Loan?
As of February 1, 1999, both FFEL and Direct Consolidation Loans have the same interest rate, which is a fixed rate set according to a formula established by law. The rate is the weighted average rate of the current rates charged on the loans being consolidated, rounded up to the nearest one-eighth of a percent. This means the rate you'll pay wont be more than one-eighth of a percent more than the effective rate on your individual loans. The rate is fixed for the life of the Consolidation Loan.
Before February 1, 1999, Consolidation Loans had variable interest rates. For information on interest rates for these loans, contact the Direct Loan Origination Centers Consolidation Department by calling 1-800-557-7392, if you have a Direct Consolidation Loan, or check with your lender if you have a FFEL Consolidation Loan.
If you have a Stafford Loan made on or after July 1, 1995, you can reduce your consolidation rate by up to half a percentage point or more if you can consolidate before the end of your grace period.
Private Loans - Student Financial Aid
More and more people are finding that if they utilize the services of a student loan consolidation center, this gives them the opportunity to consolidate all of their loans as one and it has been known that such a service can reduce monthly payments.
Career Development Loans Loans & Other Subjects
It has been recommended by many companies that if you are to take out a loan to begin with, rather than a private consolidation loan, it is ideal to start with a federal loan which is subsidized by the government.
Other Loan Consolidation Article Snippets:
Advice On A Credit Card Consolidation Loan To Help Clear Debt
"When it comes down to any student facing the prospect of taking out a consolidation loan, the question you may be asking, is it worthwhile in terms of sorting out education debt?"
The Cheap Debt Consolidation Loan The Best Way To Get Out Of Financial Distress
"When it comes down to any student facing the prospect of taking out a consolidation loan, the question you may be asking, is it worthwhile in terms of sorting out education debt?"
When Do I Start Repaying My Student Loan
"Just to give you an idea, generally the reduction that a debt consolidation program will give you will be around 50 percent."
The Business Debt Consolidation Loan Is The Same As Other Consolidation Loans
"The number one benefit of taking out a consolidation loan is the interest rates."