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School Loan Consolidation
What will my interest rate be?
Your interest rate will be based on a
federal calculation that determines the
weighted average of the interest rates of
your existing loans rounded up to the
nearest 1/8 of a percent.
Currently rates are set at the following
points:
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Stafford loans in grace : 6.54%
-
Stafford loans in repayment : 7.14%
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Stafford loans in repayment prior to
7/1/1998 : 7.94%
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PLUS Loans : 7.94%
-
Perkins Loans : 5%
-
Previous consolidations : exiting
consolidation rate
These rates do not represent the final lower
rates that you would receive with
consolidation with any applicable
incentives.
What's so great about a
fixed rate?
As a general economic principle, it is good
to get a fixed rate if you believe rates are
going up in the future, and a variable
interest rate if you believe interest rates
are going down in the future. At the present
time in history, rates seem to be on the
rise. Rates for federal student loans change
each year on July 1st.
The actual math can become rather complex.
So we have automated as much of this process
to assist you over the phone. If you are
interested in finding out what your
consolidation interest rate would be please
contact us. We would be happy to provide you
with a quote. We have streamlined this
process to the point where we can have a
quote ready for you in minutes.
I am still in school.
Can I take
advantage of school loan consolidation
to lock in
the interest rate?
Beginning July 1, 2006, the Department of
Education will no longer permit borrowers
who have not entered their grace period to
consolidate their loans while they are still
in school. To consolidation while in school,
you must:
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Request early repayment for all of your
Federal Stafford loans that have been fully
disbursed. The Early Repayment
Request and the Consolidation Application
MUST be in our office no later than June 30,
2006.
-
By updating your loans to repayment status,
you waive your grace period and may be
giving up interest benefits normally paid by
the Department of Education. You will never
regain your grace period on these loans.
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